LINKING WORKPLACE RESOURCES TO EMPLOYEE PERFORMANCE IN UAE MANUFACTURING SMES: THE ROLES OF ENGAGING LEADERSHIP, TEAM EFFECTIVENESS, AND EMPLOYEE WELL-BEING

Abstract

Employee performance presents a challenge to many small and medium-sized manufacturing enterprises (SMEs). For some, the challenge revolves around productivity and the performance of the workforce as a collective unit. For others, challenges related to the balance of competitiveness and performance arise of workplace or organizational discipline, the ability of the workforce to adapt and absorb, and the ability of the workforce to collaborate. This paper, focusing on manufacturing SMEs in the United Arab Emirates (UAE), addresses the role of employee wellbeing in the relationship between engaging leadership, team effectiveness, and employee performance. The study relies on the Conservation of Resources (COR) theory. From the perspective of the COR theory, engaging leadership and team effectiveness are seen as social and organizational resources that improve performance by enhancing employee wellbeing. The study utilized a cross-sectional quantitative design. Data was collected from a sample of 352 individuals employed in UAE manufacturing SMEs. The model was executed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The study found that engaging leadership positively impacted employee performance and employee wellbeing. Team effectiveness was found to positively impact employee wellbeing but did not impact employee performance. Employee wellbeing positively impacted employee performance and mediated all the studied relationships. This study expands the study of organizational behavior and SME performance by addressing the psychological impact of leadership and team resources on performance. The results provide insight to SME leadership and support services in the manufacturing sector in the UAE and facilitate the design of interventions aimed at improving manufacturing SMEs employee wellbeing.