The Impact of Employees Engagement and Organizational Citizenship Behavior on PIA, s Performance: The Moderating Role of Job Stress

Abstract

This study investigates the impact of employee engagement on organizational performance in Pakistan International Airlines (PIA), with particular emphasis on the mediating role of Organizational Citizenship Behavior (OCB) and the moderating effect of job stress. As a state-owned enterprise operating in a highly competitive airline industry, PIA has experienced persistent financial and service performance challenges over the past two decades. While prior research in private sector contexts suggests a positive association between employee engagement and firm performance, limited empirical evidence exists regarding such relationships within state-owned organizations in developing countries. Grounded in organizational behavior and corporate governance literature, this research proposes that employee engagement positively influences PIA’s performance. Furthermore, it hypothesizes that OCB, characterized by altruism, courtesy, civic virtue, sportsmanship, and conscientiousness, mediates the relationship between engagement and performance by encouraging voluntary, extra-role behaviors that enhance organizational effectiveness. Simultaneously, job stress is expected to negatively moderate this relationship, potentially weakening the positive effects of engagement on performance outcomes. The study adopts a quantitative research design using structured questionnaires distributed to employees of PIA. Established five-point Likert scale instruments are employed to measure employee engagement, OCB, job stress, and organizational performance. Data analysis will be conducted using SPSS, applying mediation analysis through the Preacher and Hayes technique along with other relevant econometric methods.

The findings aim to contribute to theoretical and practical understanding by offering context-specific insights for improving performance in state-owned enterprises, particularly within Pakistan’s aviation sector.

Keywords: Employee Engagement, Organizational Citizenship Behavior, Job Stress, Organizational Performance, Pakistan International Airlines, State-Owned Enterprises, Mediation, Moderation.