Company Performance in a Challenging Environment: Do Dedicated Managers Make a Difference?
Sprache des Vortragstitels:
Academy of Management Annual Meeting
Sprache des Tagungstitel:
The presented study provides an interdisciplinary cross-level analysis of the relation between individual level work engagement and firm performance. In accordance with the resource-based theory of an organization and the psychological work engagement model, it is proposed that the resources a company has access to relate to individual level work engagement, specifically dedication, which in turn will positively affect firm performance at the company level. Data of a representative survey among 1,001 companies in Bangladesh confirm the hypotheses. It appeared that the dedication of the manager adds to the predicted variance of firm performance at the company level, even when controlling for capital stock, firm size and industry assignment. Furthermore, the data showed that part of the effect of economic variables on firm performance is mediated by individual level dedication. All in all, the study contributes to an understanding of how individual work engagement relates to firm resources and firm performance. The value and limitations of including individual level variables into the prediction of firm performance is discussed.