The purpose of this paper is to examine the effect of employees' self-efficacy on employees' organizational identification. Based on a self-verification perspective, this paper focuses on the mediating role of leader–member exchange social comparison (LMXSC) and the moderating role of perceived organizational justice.
The authors conducted a field survey (Study 1) of 207 employees recruited from multiple financial organizations and tested a moderated mediation model using Hayes's (2018) PROCESS macro. The authors conducted another scenario-based experiment (Study 2) using a sample of 151 employees recruited online to further establish causality in our model.
Results suggest that employees' self-efficacy is positively associated with their LMXSC, which, in turn, positively impacts employees' organizational identification. The positive relationship between LMXSC and organizational identification is stronger when employees' perceived organizational justice is higher. The indirect effect of self-efficacy on organizational identification through LMXSC is also strengthened by perceived organizational justice.
Managers are encouraged to develop employees' self-efficacy and to create a fair environment to promote employees' identification with the organization.
This research extends organizational identification literature by examining how and when employees' self-efficacy, a dispositional predictor, leads to employees' identification with the organization from a self-verification perspective.
