The Role of Leadership Practices in Enhancing Organizational Capability: Employee Well-being as a Moderating Factor in Private Universities of Pekanbaru

Abstract

This study aims to analyze the effect of leadership on organizational capability, with the
moderating role of employee well-being in a higher education setting. A quantitative
approach with a survey design was employed, involving 120 respondents comprising
lecturers and administrative staff. Data were collected using a questionnaire with a 5-
point Likert scale. The data were analyzed using linear regression and moderated
regression analysis with SPSS. The results indicate that leadership has a significant
effect on organizational capability, with 43.9% of the variance in organizational
capability can be explained by leadership quality. Furthermore, employee well-being
was found to moderate this relationship, increasing the contribution to 61.1%. These
findings highlight that employee well-being enhances the impact of leadership on
organizational capability. This study underscores the importance of effective leadership
and employee well-being programs in strengthening organizational capacity in higher
education. The practical implication is that organizations should integrate leadership
strategies with approaches that promote employee well-being to achieve optimal
organizational performance.