Leader humility and team effectiveness: a moderated mediation model of leader-member exchange and employee satisfaction

Purpose This research study examines the impact of leader humility (LH) on team effectiveness (TE) via the mediating mechanism of leader-member exchange (LMX). It also proposes employee satisfaction (ES) as a moderating variable in the relationship between LH and TE. Design/methodology/approach This study examines relationships among the study variables in the Indian context, using a sample of 589 employees serving the banking sector in Jammu and Kashmir, India. The data analysis was carried out via confirmatory factor analysis and structural equation modeling. Findings The results showed a significant positive influence of LH on TE. The results also posit a partial mediating effect of LMX on LH and TE interplay, and ES acts as a moderator between LH and TE. Thus, the results supported the hypothesized moderated mediation model and suggested implications for theory and practice. Further, the potential limitations and future directions are placed at the end. Research limitations/implications Organizational implications include that organizations should develop attractive organizational mechanisms to ensure better LMX and ES for enhancing employee effectiveness. Besides, organizations should attract and retain effective and humble leaders; and leaders should use humble attitude and behavior in dealing with employees, eventually ensuring higher TE. Originality/value This study tested LMX and job satisfaction as intervening variables in the relationship between LH and TE in the Indian context; the framework under context has received scarce research attention. The results suggest that organizations that focus on producing humble leaders succeed in enhancing and maintaining higher organizational effectiveness.