The mediating role of hotel employees’ job satisfaction and performance in the relationship between authentic leadership and organizational performance

Authentic leadership is a positive leadership theory, conceptualized under the influence of positive psychology and positive organizational behaviour movement. Although it has become a recognized leadership theory, it is still somewhat neglected in the hospitality literature. To address this gap, the paper seeks to develop and test a conceptual model linking authentic leadership to organizational performance in the hospitality context. Hypotheses were tested using hierarchical multiple regression analysis on a sample of 226 employees from 24 hotels in Croatia. The research results confirmed the positive impact of authentic leadership on hotels’ operational performance, which was mediated by followers’ job satisfaction and performance. There was no empirical support for the hypothesized impact of authentic leadership on hotels’ financial performance. The findings suggest that authentic leadership behaviours, together with positive organisational settings, characterized by flexible organizational structure, are more likely to enhance desirable employees’ attitudes and behaviours, resulting in improved organizational performance.