Examining the impact of organisational leadership on pay satisfaction through self-esteem and locus of control: insights from the chemical industry

Abstract

PurposeThis study aims to investigate the influence of organisational leadership (OL) on pay satisfaction (PS), examining the mediating roles of self-esteem (SE) and locus of control (LC) within the chemical industry, where safety and leadership dynamics are critically important.Design/methodology/approachStructural equation modelling was used to test the proposed conceptual model. Data were collected through a survey administered to middle and senior managers from 86 chemical companies in Istanbul, T & uuml;rkiye, yielding 741 responses. After addressing validity concerns, 709 responses were analysed using SmartPLS 4.FindingsThe analysis demonstrates that OL has a significant and positive effect on SE and LC, both of which, in turn, enhance PS. Furthermore, leadership directly impacts PS, emphasising its multifaceted role in fostering positive employee outcomes.Research limitations/implicationsThe study is limited to the chemical industry in Istanbul, which may affect the generalisability of the findings. Future research could examine these dynamics across various industries and geographical regions to validate and extend the results.Practical implicationsThe results underscore the importance of cultivating strong leadership practices to enhance employees' SE and LC, thereby improving PS. Organisations may benefit from leadership development programmes that target these psychological constructs.Social implicationsThe findings contribute to the literature on leadership and PS by elucidating the mediating roles of SE and LC. The study supports the view that effective OL positively shapes individual self-perception and job satisfaction outcomes.Originality/valueThis study uniquely explores the interrelationship between leadership, SE, LC and PS in a high-risk industry. It offers empirical evidence of the pivotal role psychological mediators play in the leadership-employee satisfaction nexus.