Abstract

Building on agency theory and signaling theory, this study investigated the psychological mechanism of how empowerment impacts hotel frontline employees' self-esteem, perceived trust, and OCBs performed toward both internal and external customers. Using a longitudinal research design with data collected via three waves, the results supported that three out of four dimensions of empowerment had significant and positive influence on employees' self-esteem and perceived trust, both of which are significant predictors for three types of OCBs. The study makes important contributions to literature and suggests that hotel employees feeling empowered can enhance their overall wellness while contributing to their OCB performances. Thus, empowerment should be properly used as a strategy to facilitate employees’ contextual performance.