The mediating role of employee engagement in the relationship between corporate purpose and organisational performance

Abstract

This research paper addresses the research gap identified in this paper by examining the mediating role of employee engagement in the relationship between corporate purpose and organisational performance. The study employed a cross-sectional descriptive quantitative design, drawing responses from 246 participants across diverse demographic backgrounds ensuring a diverse and representative sample. The study achieved a significant response rate of 64.1% which provided a solid foundation for the study’s statistical analysis and conclusions. To analyse the data, the research employed a variety of quantitative techniques, ensuring the reliability and validity of the findings. These included rigorous statistical tests to validate the constructs related to corporate purpose, employee engagement (encompassing cognitive, emotional, and behavioral dimensions), and organisational performance (both financial and non-financial). The key findings of the research demonstrated a statistically significant positive correlation between corporate purpose and both dimensions of organisational performance. Additionally, corporate purpose was found to significantly influence all dimensions of employee engagement. Intriguingly, emotional engagement emerged as a mediator in the relationship between corporate purpose and non-financial performance, while behavioral engagement mediated the relationship with financial performance. The study also identified areas where mediation was not significant, highlighting the complexity of these relationships. While the research was robust, limitations such as reliance on self-reported data and its cross-sectional nature were acknowledged. The paper concludes with recommendations for future research directions, including longitudinal studies and broader geographical and industry-specific explorations, to deepen the understanding of these relationships. Conclusively, the paper makes a significant contribution to the field by empirically establishing the nuanced role of employee engagement in linking corporate purpose with organisational performance. This study not only fills a critical research gap but also offers practical insights for organisations aiming to align their purpose with employee engagement strategies, thereby enhancing overall performance and societal contributions.