Linking Perceived Organizational Support and Leader-Member Exchange to Job Embeddedness: The Role of Self-Efficacy

¹ Department of Sharia Economics, Faculty of Islamic Studies, Universitas Muhammadiyah Yogyakarta, Indonesia
² Faculty of Technology Management and Technopreneurship, University Teknikal Malaysia Melaka
³ Department of Management, Faculty of Economics and Business, Universitas Bung Hatta

^* Corresponding author: muhammad.zakiy@fai.umy.ac.id

Abstract

In the context of an ever-changing workplace, a deep understanding of the factors influencing employee engagement levels and the role of self-efficacy in this process becomes crucial. This study aims to investigate the influence of perceived organizational support (POS) and leader-member exchange (LMX) on job embeddedness with self-efficacy as a mediating variable. The study involved 305 employees from 3 Sharia Banks representing Islamic Financial Institutions (IFI) in Indonesia as the research sample. The findings indicate a positive influence of POS and LMX on employee self-efficacy. Moreover, self-efficacy also mediates the influence of POS and LMX on job embeddedness. The managerial implications highlight the importance for organizations to provide clear support and foster good relationships between leaders and employees to enhance employee self-efficacy. Developing supportive policies, employee development programs, and effective leadership training can be strategies to strengthen employee attachment to IFIs. This research contributes to understanding the dynamics of relationships in organizational workplaces, emphasizing the crucial role of self-efficacy as a partial mediator in achieving higher levels of attachment in the context of IFIs.