Antecedents of Workplace Inclusion and Happiness at Work in AWACH SACCOS, Ethiopia: The Moderating Role of Perceived Organizational Support

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Date

2026-06

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Addis Ababa University

Abstract

The purpose of this study is to examine the relationships between Inclusive Leadership, psychological safety and Organizational Justice on employees’ Happiness at Work. Utilizing the mediating impact of Workplace Inclusion and the moderating effect of perceived organizational support. The research involved a cross-sectional study with a quantitative methodology, collecting data from 200 employees working in AWACH SACCOS. The data was collected online using Google Forms through a questionnaire and analyzed using smart PLS version 4.1.0.6.The hypothesis testing outcomes reveal several key findings, positive significant relationship between PS and WI, H1 supported (β= 0.274, p = 0.000); positive correlation between WI and IL, H2 supported (β= 0.219, p = 0.003); no statistically significant relationship between WI and OJ, H3 not supported (β= -0.000, p = 1.000); positive significant relationship between WI and HAW ,H4 supported (β= 0.255, p = 0.008). Significant direct effect (β= 0.274, p = 0.000) of PS on WI and significant indirect effect (β=0.070, p=0.012) of PS on HAW through WI. H5, is a partial mediation. Significant direct effect (β= 0.219, p = 0.003) of IL on WI and significant indirect effect (β=0.056, p=0.055) of IL on HAW through WI, H6 is partial mediation. Insignificant direct effect (β= -0.000, p = 1.000) of OJ on WI and an insignificant indirect effect (β= -0.000, p = 1.000) of OJ on HAW through WI, H7, there is no mediation. No statistical evidence for a significant moderating effect of POS on the PS-WI relationship (p = 0.763 > 0.05, t = 0.302 < 1.96), H8 is rejected. T-value of 2.618 (which exceeds the standard 1.96 threshold) and a p-value of 0.009 (p < 0.05), therefore, H9 is rejected. Significant effect of POS on the OJ-WI (p = 0.007 < 0.05, t = 2.701 > 1.96, β = 0.149).Therefore, H10 is accepted. The relationship (p = 0.148 > 0.05, t = 1.446 < 1.96, f² = 0.012) therefore, H11 is rejected. Addressing a gap in the literature on employee well-being in African cooperative institutions, this study is among the first to empirically test a moderated mediation model linking PS, IL, and OJ to HAW via WI in an Ethiopian SACCOS. This study drawing on Organizational Support Theory (OST), Social Exchange Theory (SET), Leader-Member Exchange (LMX) Theory and Optimal Distinctiveness Theory (ODT), the study develops and tests 11 hypotheses

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Keywords

Inclusive Leadership, Organizational justice, Psychological safety, Workplace inclusion, perceived organizational support and Happiness at work

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