Organisational climate and team performance: the mediating role of psychological empowerment at Jordanian pharmaceutical companies

Amro Al-Madadha, Ahmad Samed Al-Adwan, Mohammad Kasem Alrousan and Yaser A. Jalghoum

International Journal of Management Practice, 2019, vol. 12, issue 2, 228-245

Abstract: Nowadays, pharmaceutical companies are considered one of the main pillars of the economic development of any country. The number of pharmaceutical companies has increased rapidly in the last decade in Jordan and many have adopted new managerial practices to improve their efficiency by boosting employees' performance. Accordingly, this paper built a conceptual framework that links organisational climate to team performance through psychological empowerment. To do so, 466 questionnaires were distributed to employees and their managers at four pharmaceutical companies; 424 responses were received, from 364 employees and 60 managers. Structural equation modelling (SEM) was employed to test the hypothesis, determine the validity of the model and measure the structural evaluation. Furthermore, a Sobel test was conducted to assess the capacity of psychological empowerment to influence the relationship between organisational climate and team performance. The major findings are that: 1) organisational climate has a significant positive relationship with psychological empowerment; 2) psychological empowerment has a positive relationship with team performance; 3) the significant positive relationship between organisational climate and team performance is mediated through psychological empowerment.

Keywords: psychological empowerment; team performance; organisational climate. (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmpra:v:12:y:2019:i:2:p:228-245

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