Mediating Role of Psychological Capital between Dimensions of Organisational Culture and Employee Performance: A Study of Select Organisations

Abstract

Organisational culture plays a significant role in promoting the success of an enterprise. The study focuses on the impact of two dimensions of organisational culture: Developmental Culture (DC) and Relational Culture (RC). The mediating role of psychological capital between the dimensions of organisational culture and employee job performance is explored. The study is conducted on the financial and education sector of India. The model is tested using Confirmatory Factor Analysis and Structural Equation Modeling. The indirect effect of the cultural dimensions is found to be significant with psychological capital acting as a full mediator. The direct effect of organisational cultural dimensions is not significant on performance.