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Purpose

The healthcare sector faces leadership challenges, emphasizing the importance of a mechanism to support and empower team members. The present study aims to investigate the impact of team empowerment (TE) on team performance (TP), with the mediating role of shared leadership (SL) and the moderating role of relationship conflict between shared leadership and team performance.

Design/methodology/approach

This study's conceptual model was proposed using the social exchange theory and conservation of resource theory. Data was collected using a self-administrated questionnaire to 492 respondents, of which 42 were team leaders, and 450 were team members from 42 teams in the Pakistani healthcare sector. The Partial Least Square-Structural Equation Modeling (PLS-SEM) technique was used to examine the proposed hypotheses of the study.

Findings

The results revealed a significant positive relationship between team empowerment and shared leadership. SL is positively associated with team performance. The present study also found that SL positively mediated the relationship between shared leadership and team performance. Moreover, relationship conflict moderated the relationship between SL and TP.

Practical implications

The finding delineates that healthcare organizations can adopt shared leadership and empower team members by involving them in decision-making, enhancing collaboration, resource utilization, and patient care outcomes. Managers should implement structured strategies like cross-functional training and inclusive decision-making processes to cultivate empowered teams and mitigate relationship conflicts for optimal performance.

Originality/value

The study advocates developing shared leadership practices for better team outcomes. This study is an early attempt to examine the mediating role of shared leadership between team empowerment and team performance.

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