Perceived Organisational Prestige and Employee Engagement: The Mediating Role of Psychological Capital

Britney Sue Fun Bong (), Chi Hau Tan and Soo Ting T’ng
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Britney Sue Fun Bong: Universiti Tunku Abdul Rahman, Faculty of Business and Finance
Chi Hau Tan: Universiti Tunku Abdul Rahman, Faculty of Business and Finance
Soo Ting T’ng: Universiti Tunku Abdul Rahman, Faculty of Business and Finance

A chapter in Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023), 2023, pp 280-294 from Springer

Abstract: Abstract In a constantly evolving professional landscape, academic institutions face the looming threat of ‘The Great Resignation’. This threat presents a pressing concern where it leads to disengagement among employees. Subsequently, recognizing the pivotal role of academics in higher-level education, the study examines the relationship between perceived organisational prestige and employee engagement while investigating the mediating role of psychological capital among academics in Malaysian private universities, grounded by the broaden and build theory. A total of 217 academics from selected Malaysian private universities participated in an online questionnaire survey. PLS-SEM was utilized to test the hypotheses. Results reveal that perceived organisational prestige positively predicted psychological capital. Both perceived organisational prestige and psychological capital significantly influence employee engagement. Furthermore, psychological capital acts as a pivotal mediator between perceived organisational prestige and employee engagement. Consequently, these findings highlight the role of psychological capital in shaping an employee’s coping mechanism towards the sociopsychological stress factors, offering valuable insights into the fostering effect of psychological capital as a resource in influencing diverse facets of organisational behaviours. The outcome also highlights the potential for interdisciplinary studies to improve the work environment’s quality and employee welfare.

Keywords: Perceived Organisational Prestige; Psychological Capital; Employee Engagement; Academic Staff and Malaysian Private University (search for similar items in EconPapers)
Date: 2023
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DOI: 10.2991/978-94-6463-342-9_20

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