While servant leadership is widely recognised as a key factor in driving employee performance and various psychological outcomes, there remains a notable gap in understanding how it influences employee embeddedness through fostering harmonious relationships, particularly within energy-centric social enterprises. This study seeks to address this gap by investigating how servant leaders’ behaviours can effectively cultivate harmonious relationships, ultimately leading to increased employee embeddedness within organisations. Additionally, this study introduces a novel aspect by examining how an individual psychological trait, specifically a propensity for risk-taking, may influence the indirect effect of servant leadership on employee embeddedness.
To test this model, data from 309 respondents was collected through a three-wave survey design. The simple mediation analysis was performed using the PROCESS macro-Model 4, and the moderated mediation analysis was performed using the PROCESS macro-Model 8.
The findings indicate that harmonious passion serves as a significant mediator between servant leadership and employee embeddedness. Notably, this relationship is amplified among individuals with higher levels of the risk-taking trait.
The study addresses the research gaps in the interplay between individual traits and the psychological effectiveness of servant leadership in inducing harmonious passion, leading to socio-emotional outcomes such as employee embeddedness. Further, by addressing the issues related to employee retention in social enterprises, this research helps social entrepreneurs create a desirable societal impact without experiencing human resource hurdles. By doing so, this investigation significantly contributes to the research community, practitioners and society at large.
