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p-Index From 2021 - 2026
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All Journal Business and Applied Management Journal
Reza Pala’langan
Universitas Diponegoro, Indonesia
Humanities Economics, Econometrics & Finance Education Environmental Science Social Sciences

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Empowering Leadership and Employee Performance in the Banking Sector: The Mediating Roles of Harmonious and Obsessive Passion Reza Pala’langan; Eisha Lataruva
Business and Applied Management Journal Vol. 4 No. 3 (2026): IN PRESS
Publisher : Al-Qalam Institute

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61987/bamj.v4i3.2842

Abstract

This study examines the effect of empowering leadership on employee performance and the mediating roles of harmonious passion and obsessive passion. A quantitative approach was applied to a population of 60 employees. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that empowering leadership positively and significantly affects employee performance (β = 0.293, p = 0.036) and harmonious passion (β = 0.435, p < 0.001), while negatively affecting obsessive passion (β = −0.393, p < 0.001). Harmonious passion positively affects employee performance (β = 0.414, p < 0.001) and significantly mediates the relationship between empowering leadership and employee performance (indirect effect = 0.180, p = 0.019; VAF = 32.1%). Conversely, obsessive passion negatively affects employee performance (β = −0.221, p = 0.044), but does not significantly mediate the relationship (indirect effect = 0.087, p = 0.072). These findings suggest that organizations should implement empowering leadership by granting employees autonomy, building trust, and providing support. Such practices can foster harmonious passion, strengthen employee performance, and help reduce obsessive passion.
Co-Authors Eisha Lataruva