Servant leadership and employee productivity: a mediating and moderating role

Abstract

PurposeThis study aims to determine the relationship between servant leadership, innovation self-efficacy, corporate work culture and employee productivity in mediating and moderating role.Design/methodology/approachThe research sample was 72 supervisors and 576 employees from 72 food and beverage small and medium enterprises (SMEs) in three major cities in Indonesia. SPSS and AMOS were used to test the research hypothesis using the hierarchical regression analysis test.FindingsThe results show that there was a positive and significant effect between servant leadership on innovation self-efficacy and employee productivity. Innovation self-efficacy mediates the relationship between servant leadership and employee productivity. Corporate work culture moderated the relationship between innovation self-efficacy and employee productivity.Research limitations/implicationsFuture research with larger samples are needed to determine the relationship between servant leadership, innovation self-efficacy, corporate work culture and employee productivity more clearly not only on food and beverage SMEs but also on other industries. Future research needs to be carried out using experimental and longitudinal research designs.Practical implicationsThere are three important practical implications based on the findings of this study. First, the results of the study provide new ideas for SME managers on how to increase the productivity of their employees, by using servant leadership which is known to be the main driver for innovation self-efficacy behavior. Second, the mediating role of innovation self-efficacy requires managers to build employee self-efficacy behavior, share more power with employees and make employees more involved in decision-making, which in turn can increase employee confidence and motivation, and their productivity. Finally, managers must realize the need to create a productive work culture in the company, by taking various actions, such as giving rewards to productive employees, making clear regulations on the company regarding working hours and company targets, and must pay attention and respect the employee's views and opinions to improve employee identification of their leaders.Originality/valueThis is the first study to build and examine the direct and indirect relationship (mediating and moderating role) between servant leadership, innovation self-efficacy, corporate work culture and employee productivity in food and beverage SMEs.