Exploring the power of psychological empowerment in boosting workforce agility in SMEs

Abstract

This study investigates the impact of psychological empowerment on workforce agility in small and medium-sized enterprises (SMEs). The study employs a quantitative analysis to measure levels of psychological empowerment and workforce agility, assessing the dimensions of psychological empowerment, including Meaning, Self-determination, Competences, and Impact, and examining their influence on workforce agility. The results reveal a significant positive relationship between the dimensions of competence and meaning in psychological empowerment and workforce agility. However, the dimensions of impact and self-determination do not exhibit a strong relationship with workforce agility. This research contributes to the existing literature by addressing the gap in knowledge regarding the impact of psychological empowerment on workforce agility in Moroccan SMEs. The findings have practical implications for managers and decision-makers in SMEs, suggesting that organizations should focus on improving their employees' skills and enhancing their sense of work meaning to foster resilience and adaptability. By fostering workforce agility through empowerment, organizations can create a more engaged and adaptable workforce, potentially leading to increased productivity and competitiveness.

Keywords: Psychological empowerment, organizational agility, workforce agility, small and medium-sized enterprises (SMEs), construction sector firms.

JEL Classification : O15, C3, M1, L74

Paper type: Empirical research