FROM TRUST TO BETTER LEADERSHIP OUTCOMES: THE MEDIATING ROLE OF PSYCHOLOGICAL EMPOWERMENT

Trust is an essential feature of leadership that can often go unrecognized until it weakens. The study aims to investigate the relationship between trust in leadership and leadership outcomes, as well as the mediating role of psychological empowerment in this relationship. The sample consists of 351 employees from organizations operating in Serbia. The hypotheses are tested using the PLS-SEM and the results show that there is a statistically significant positive relationship between trust in the leader and leadership outcomes, and that the psychological empowerment of employees also has a significant mediating role in this relationship. Motivated by the insufficiently explored concepts of trust and psychological empowerment in the sphere of leadership within the business environment of developing countries, including Serbia, the authors contribute to the field by examining the mediating role of psychological empowerment, while also advancing the understanding of trust and highlighting their importance in achieving positive leadership outcomes.