Assessing the effects of emotional intelligence, psychological capital, and workplace diversity on employee performance in State-Owned Enterprises in Namibia

Abstract

This study assessed the effects of emotional intelligence (EI), psychological capital (PsyCap), workplace diversity (WD), and employee performance (EP) within Namibian State Owned Enterprises (SOEs). Grounded in the theoretical frameworks of social cognitive theory (SCT), social identity theory (SIT), social categorisation theory (SoCT), goal setting theory (GST), and resource based view theory (RBV), the research provides a comprehensive lens for understanding the complex dynamics at play. The study adopted a post positivism research philosophy, quantitative approach, and explanatory research design. A multistage sampling method secured a representative sample. Data were collection via structured questionnaires distributed through Google Forms to employees across six Tier 2 SOEs in Namibia and analysed using Partial Least Square Structural Equation Modelling. The findings revealed significant positive relationships between EI and PsyCap, PsyCap and EP, PsyCap, and WD, and between WD and EP. PsyCap mediated the relationship between EI and EP while WD mediated the relationship between PsyCap and EP. Contrary to expectation, EI did not directly influence EP or WD, and WD did not mediate the EI EP relationship. These results suggested an integrated approach to EP enhancement, emphasizing the roles of PsyCap and WD. Theoretical contributions include a refined understanding of how EI, PsyCap, WD, and EP interact, proposing new perspectives on existing frameworks within organisational behaviour and psychology. The study’s practical implications highlight the need for targeted training programs to develop EI and PsyCap, inclusive hiring practices, diversity training, and support systems for underrepresented groups. Future research directions suggest exploring additional contextual factors, such as organisational culture and leadership styles, to further explain these dynamics and enhance the strategies for improving performance in diverse organisational settings.