Why does empowering leadership occur and matter? A multilevel study of Chinese hotels

To address the question of why empowering leadership occurs and matters, this study develops an integrated model including both antecedents and consequences of empowering leadership in hospitality organizations. Drawing on data from 558 employees and 86 department managers in 24 Chinese hotels, results of hierarchical linear modeling support person–situation interactionist theory by suggesting that top-level empowering leadership and middle-level leaders’ self-efficacy have main and interaction effects on middle-level empowering leadership. Main and mediation effect results support service profit chain theory and motivational and exchange-based models by demonstrating that middle-level empowering leadership has positive effects on employees’ service-oriented behaviors directly and indirectly, and employees’ psychological ownership mediates these indirect effects. This study is among the first to explore antecedents of empowering leadership from both personal and contextual perspectives, and mediation by psychological ownership in the relationship between empowering leadership and employee service-oriented behaviors.