The Effect of Relational Capital on Employee Performance

Abstract

This study investigates to what extent do relational capital dimensions (RC) impact employee performance through the mediating role of employee engagement. We put forward and test a theoretical framework of direct and indirect effects of RC based on trust, friendship and mutual reciprocity on employee engagement (EE). Hypothetically, RC dimensions coupled with EE are likely to influence employee performance (EP). Empirical results based on a sample of 342 financial services firms support our hypotheses. Results also indicate that RC provides a basis for EE & EP. Thus, we conjecture that RC and EE improve employee performance. Accordingly, we encourage financial services firms to cultivate their RC for harnessing their EE in order to boost EP in the long run.

Presenters

Fahad Ibrahim
Assistant Professor, Marketing, University of Birmingham, United Kingdom

Raphael Akamavi
Associate Professor, Birmingham School Business, University of Birmingham, Warwickshire, United Kingdom

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

Organizational Intangibles and Tangible Value

KEYWORDS

Social capital, Relational capital, Trust, Reciprocity, Employee engagement, Employee performance

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