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Effects of Psychological Empowerment on Firm's Performance:Mediation of Affective Commitment
The purpose of this study is to investigate the effect of psychological empowerment on firm performance by taking the employee affective commitment as mediator. Primary data based on 208 respondents has been analyzed to test the stated hypotheses. Initially exploratory factor analysis has been employed to clarify the underlying pattern of factors. Then correlation and multiple regression analyses have been used to check the relationship among study variables. Results of regression analysis revealed that affective commitment partially mediates the relationship between psychological empowerment and firm performance. So, to enhance affective commitment and firm performance, management and leaders must do every possible effort to empower their employees. The implications for HR practitioners and organizations are also discussed.
Psychological Empowerment, Affective Commitment, Firm’s Performance, India.
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