Empowering Leadership and Employee Performance in the Banking Sector: The Mediating Roles of Harmonious and Obsessive Passion
DOI:
https://doi.org/10.61987/bamj.v4i3.2842Keywords:
Empowering Leadership, Employee Performance , Harmonious Passion , Obsessive PassionAbstract
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.
References
Ahearne, M., Mathieu, J., & Rapp, A. (2005). To Empower or Not to Empower Your Sales Force? An Empirical Examination of the Influence of Leadership Empowerment Behavior on Customer Satisfaction and Performance. Journal of Applied Psychology, 90(5), 945–955. https://doi.org/10.1037/0021-9010.90.5.945
Ali, S. A., Alaghbari, M. A., & Al Astal, A. Y. M. (2024). Burnout and Its Impact on Employee Performance: A Comprehensive Systematic Review. In Studies in Systems, Decision and Control (pp. 543–551). Springer. https://doi.org/10.1007/978-3-031-70399-7_41
AlMazrouei, H. (2023). Empowerment Leadership as a Predictor of Expatriates' Job Performance and Creative Work Involvement. International Journal of Organizational Analysis, 31(3), 837–874. https://doi.org/10.1108/IJOA-05-2021-2769
Alwali, J., & Alwali, W. (2025). Transformational Leadership and Moral Norms: Green Human Resource Management and Behaviour. Management Decision, 63(5), 1417–1442. https://doi.org/10.1108/MD-09-2023-1682
Baumeister, S. E., Kocher, T., Papapanou, P. N., Holtfreter, B., & Demmer, R. T. (2026). Cross‐Sectional Studies: Strengths, Limitations, and Methodological Considerations. Journal of Periodontal Research, 61, 749–760. https://doi.org/10.1111/jre.70063
Blau, P. M. (1964). Exchange and Power in Social Life. John Wiley & Sons.
Chen, N., Chen, L., Kang, Y., & Zhou, Y. (2024). The Curvilinear Relationship Between Empowering Leadership and Team Performance: A Self-Regulatory Perspective. Journal of Management & Organization, 55(4). https://doi.org/10.1177/10464964241231570
Cheng, P., Zhou, L., Liu, T., & Ge, N. (2025). Empowering Leadership and Frontline Employees' Emotional Labor: The Mediation Effects of Job Passion. Frontiers in Psychology, 16, Article 1437736. https://doi.org/10.3389/fpsyg.2025.1437736
Cheyroux, P., Morin, A. J., Colombat, P., & Gillet, N. (2025). Nature, Predictors, and Outcomes of Nurses' Trajectories of Harmonious and Obsessive Passion. Applied Psychology, 74(1), Article e12587. https://doi.org/10.1111/apps.12587
Fardiansyah, I. E., Jumady, E., & Djaharuddin, D. (2025). Leadership and Organizational Commitment in Improving Employee Performance: The Role of Job Satisfaction as a Mediator. Golden Ratio of Human Resource Management, 5(1), 221–231. https://doi.org/10.52970/grhrm.v5i1.862
Figueiredo, R. G., Patino, C. M., & Ferreira, J. C. (2025). Cross-Sectional Studies: Understanding Applications, Methodological Issues, and Valuable Insights. Jornal Brasileiro de Pneumologia, 51(1), Article e20250047. https://doi.org/10.36416/1806-3756/e20250047
Gul, H., & Ghani, U. (2026). The Paradoxical Effect of Empowering Leadership on Innovative Work Behavior: Roles of Power Distance and Work Passion in Services. Journal of Organizational Effectiveness: People and Performance, 13(1), 206–229. https://doi.org/10.1108/JOEPP-05-2024-0204
Handayani, M. A., Trihandayani, Z., & Cahyani, E. (2026). The Influence of Transformational Leadership and Empowering Leadership on Job Satisfaction and Employee Performance in the Digital Era. MOTIVASI: Jurnal Manajemen dan Bisnis, 1(1), 33–45. https://doi.org/10.32502/mti.v11i1.1402
Huu, P. T., An, N. T., & Trung, N. N. (2026). Exploring the Role of Organizational Effectiveness: A Systematic Review of Competencies and Capabilities in Staff and Management. Computational and Mathematical Organization Theory, 32(1), Article 2. https://doi.org/10.1007/s10588-025-09417-1
Ivancevich, J. M., Konopaske, R., & Matteson, M. T. (2007). Organizational Behavior and Management (7th ed.). Erlangga.
Kim, M., & Beehr, T. A. (2022). Empowering Leadership Improves Employees' Positive Psychological States to Result in More Favorable Behaviors. The International Journal of Human Resource Management, 34(10), 2002–2038. https://doi.org/10.1080/09585192.2022.2054281
Lajom, J. A. L., Amarnani, R. K., Restubog, S. L. D., Bordia, P., & Tang, R. L. (2018). Dualistic Passion for Work and Its Impact on Career Outcomes: Scale Validation and Nomological Network. Journal of Career Assessment, 26(4), 631–648. https://doi.org/10.1177/1069072717723096
Li, J., Zhang, J., Shao, B., & Chen, C. (2020). A Latent Profile Analysis of Work Passion: Structure, Antecedent, and Outcomes. Personnel Review, 49(3), 846–863. https://doi.org/10.1108/PR-04-2019-0145
Li, Y., & Li, Y. (2025). Enhancing Pro-Environmental Behavior Through Green HRM: Mediating Roles of Green Mindfulness and Knowledge Sharing for Sustainable Outcomes. Sustainability, 17(6), Article 2411. https://doi.org/10.3390/su17062411
López-Cabarcos, M. Á., Vázquez-Rodríguez, P., & Quiñoá-Piñeiro, L. M. (2022). An Approach to Employees' Job Performance Through Work Environmental Variables and Leadership Behaviours. Journal of Business Research, 140, 361–369. https://doi.org/10.1016/j.jbusres.2021.11.006
Lu, F. (2026). The Algorithmic Management Paradox: A Structured Integrative Review of Perceived Autonomy on Performance in Digital Workplaces. Frontiers in Psychology, 17, Article 1829522. https://doi.org/10.3389/fpsyg.2026.1829522
Madaan, K., Jain, D., & Sharma, H. (2025). Does Paradoxical Leadership Predict Employee Job Performance in Hospitality? A Sequential Mediation of Harmonious Work Passion and Innovative Work Behavior. Journal of Hospitality and Tourism Insights, 8(4), 1458–1477. https://doi.org/10.1108/JHTI-05-2024-0411
Modise, J. M. (2023). The Impacts of Employee Workplace Empowerment, Effective Commitment and Performance: An Organizational Systematic Review. International Journal of Innovative Science and Research Technology, 8(7), 3435–3457.
O'Donoghue, D., & Van Der Werff, L. (2022). Empowering Leadership: Balancing Self-Determination and Accountability for Motivation. Personnel Review, 51(4), 1205–1220. https://doi.org/10.1108/PR-11-2019-0619
Peethambaran, M., & Naim, M. F. (2023). Connecting the Dots: Linking Empowering Leadership, Employee Work Passion, and Flourishing-at-Work. Industrial and Commercial Training, 55(4), 544–557. https://doi.org/10.1108/ICT-10-2022-0079
Piao, J., & Hahn, J. (2025). How Empowering Leadership Drives Proactivity in the Chinese IT Industry: Mediation Through Team Job Crafting and Psychological Safety With ICT Knowledge as a Moderator. Behavioral Sciences, 15(5), Article 609. https://doi.org/10.3390/bs15050609
Rahayu, S. T., Mansyur, & Ismail, I. (2024). Pengaruh Kinerja Karyawan terhadap Suksesnya Suatu Perusahaan. Jurnal Media Akademik (JMA), 2(12). https://doi.org/10.62281/v2i12.1090
Rehan, M., Nazir, M. U., & Malik, S. A. (2026). From Spirit to Strategy: Unpacking the Role of Intrinsic Motivation and Harmonious Work Passion in Intrapreneurial Behavior. Human Systems Management, Article 01672533261456015. https://doi.org/10.1177/01672533261456015
Sabol, M., Hair, J., Cepeda, G., Roldán, J. L., & Chong, A. Y. L. (2023). PLS-SEM in Information Systems: Seizing the Opportunity and Marching Ahead Full Speed to Adopt Methodological Updates. Industrial Management & Data Systems, 123(12), 2997–3017. https://doi.org/10.1108/IMDS-07-2023-0429
Schellenberg, B. J. I., Gaudreau, P., & Bailis, D. S. (2022). Lay Theories of Obsessive Passion and Performance: It All Depends on the Bottom Line. Personality and Individual Differences, 190, Article 111528. https://doi.org/10.1016/j.paid.2022.111528
Slil, E., Iyiola, K., Alzubi, A., & Aljuhmani, H. Y. (2025). Impact of Safety Leadership and Employee Morale on Safety Performance: The Moderating Role of Harmonious Safety Passion. Buildings, 15(2), Article 186. https://doi.org/10.3390/buildings15020186
Sulistiawan, J., Moslehpour, M., & Lin, P.-K. (2022). Linking Passion for Work and Emotional Exhaustion in Indonesian Firefighters: The Role of Work-Family Conflict. International Journal of Environmental Research and Public Health, 19(22), Article 14629. https://doi.org/10.3390/ijerph192214629
Susanto, A., Kurniawati, M. P. U., Zahrah, C. A., & Agung, D. (2022). Pengaruh Efek Mediasi Pemberdayaan Psikologis terhadap Gaya Kepemimpinan dan Kinerja pada Karyawan Bank BUMN. Bina Ekonomi, 26(2), 167–185. https://doi.org/10.26593/be.v26i1.5538.76-94
Sypniewska, B. A., Baran, M., & Jagodziński, A. (2026). Job Satisfaction and Sustainable Employee Development: Engagement, Well-Being, and Passion. Taylor & Francis. https://doi.org/10.4324/9781003609735
Tariq, M. U. (2026). Influence of Leadership Styles on Passion-Cultivating Purpose-Driven Leadership. In The Purpose of Passion in Leadership (pp. 237–262). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3373-2404-3.ch009
Wei, H., Chen, J., Chudhery, M. A. Z., & Fang, W. (2023). Empirically Investigating the Organizational Identity Mechanism of Empowering Leadership Affecting the Innovation Performance of Knowledge Workers. Kybernetes, 53(12), 5155–5174. https://doi.org/10.1108/K-10-2022-1429
Xu, Y., & Zhang, M. (2022). The Study of the Impact of Empowering Leadership on Adaptive Performance of Faculties Based on Chain Mediating Adaptability Performance of College. Frontiers in Psychology, 13, Article 938951. https://doi.org/10.3389/fpsyg.2022.938951
Ye, L., Li, Y., & Zhang, N. (2025). The Impact of Autonomy-Supportive Organizational Environments on Employees' Emotions and Creative Performance: A Self-Determination Theory Perspective. PLOS ONE, 20(5), Article e0322184. https://doi.org/10.1371/journal.pone.0322184
Yikilmaz, I., Surucu, L., Maslakci, A., & Cetinkaya, B. (2025). Corporate Social Responsibility as a Driver of Business Innovation: The Mediating Role of Corporate Reputation on Employee Performance in the Hospitality Sector. Systems, 13(6), Article 475. https://doi.org/10.3390/systems13060475
Zito, M., Emanuel, F., Bertola, L., Russo, V., & Colombo, L. (2022). Passion and Flow at Work for the Reduction of Exhaustion at Work in Nursing Staff. SAGE Open, 12(2), 1–10. https://doi.org/10.1177/21582440221095009
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Reza Pala’langan, Eisha Lataruva
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
