Impact of Personality Traits on Life Satisfaction and Organisational Embeddedness with Moderating Effect of Community Embeddedness: Evidence from Pakistan

Abstract

The primary purpose of this research has been to determine the impact of Personality Traits on Life Satisfaction and Organizational Embeddedness keeping Community Embeddedness as a moderator. We proposed a theoretical framework whereby Personality Traits of employees affects their life satisfaction as well as organizational embeddedness keeping Community Embeddedness as a moderator. Personality Traits were further sub-divided into Extraversion, Openness to Experience, Neuroticism, Conscientiousness and Agreeableness. Both Organization and ommunity Embeddedness were classified as fit, link, and Sacrifices related to organization or community respectively. The validity of theoretical model was empirical established by testing it to 102 employees working in various organizations of Karachi, Pakistan by means of likert scale type questionnaire. Data of the survey was analyzed using SEM and CFA methodology via Smart PLS. The result suggested that three out of five personality traits pose an impact over life satisfaction while the relationship of other two remained insignificant. Extraversion, Openness to Experience and Agreeableness have a significant relationship while Neuroticism and Consciousness have insignificant relationship with Life Satisfaction. Moreover, the results also depict a positive relationship between Organisational Embeddedness and Life Satisfaction while the moderating effect of Community Embeddedness was insignificant. Furthermore, except Neuroticism, all other personality traits are positively associated with Organizational Embeddedness. Organizations can introduce training programs that promote personality traits that pose a positive impact over life satisfaction and organizational embeddedness. Apart from training the existing employees, the managers can also assess the personality of potential employees during recruitment process in order to identify the candidates with suitable personalities.

Keywords: Personality Traits; Life Satisfaction; Organisational Embeddedness; Community Embeddedness; Pakistan; SEM; CFA