The Mediating Role of Employee Engagement in the Relationship Between Leadership Styles and Organizational Performance

Abstract

Organizational performance is the combined efforts of the employees and leadership. Their effective engagement and better working relationships enhance organizational performance and effectiveness. Open communication among employees and Leadership bolsters organizational performance and provides social, emotional, psychological, ethical, and moral support, safety, and security. This study explores employee engagement's mediating role in assessing Small and Medium Enterprises (SMEs). A mixed methodology was adopted for the study. In the first step, a Systematic Literature Review (SLR) was adopted as a methodology for the analysis.   In the second stage, a case study supported the study's findings. The study found that leadership style affects organizational performance. Moreover, employee engagement has a significant effect on organizational performance. The study also proposed a model based on the content review, which is recommended to be tested in different contexts and industries around the globe.