The Impact of Authentic Leadership on Employee Psychological Capital in the Hospitality Industry

Abstract

Psychological capital is a focal component of authentic leadership theory. The importance and growing popularity of psychological capital stem from its positive effect on desirable employee work-related attitudes and behaviors, which is particularly pronounced in the service industries. However, empirical research on the relationship between authentic leadership and psychological capital in the hospitality industry is scarce. In order to fulfil this gap in the literature, the present study investigates the influence of authentic leadership on hotel employees' psychological capital, additionally examining the moderating role of organizational structure. Hypotheses were tested using hierarchical multiple regression analysis on a sample of 226 employees from 24 hotels in Croatia. The findings confirmed that managers who demonstrate authentic leadership behaviors are able to positively impact hotel employees' psychological capacities of hope, optimism, resilience and self-efficacy. However, there was no empirical evidence to support the hypothesized moderation effect of organic organizational structures in the said relationship.