The Mediating Role of Motivating Language in the Relationship Between Leaders’ Interpersonal Communication Competence and Employee Performance in Malaysian Service SMEs

Abstract

An organisation’s success largely depends on its human resources, particularly its employees, who need to be motivated and supported to perform effectively. Research indicates that leaders who possess strong interpersonal communication skills are better able to guide and manage their workforce. This quantitative cross-sectional study investigates how leaders’ interpersonal communication competence influences employee performance in Malaysian service small and medium-sized enterprises (SMEs) and examines the mediating role of motivating language in this relationship. Although prior research has separately linked leadership communication and employee outcomes, limited empirical work has explained the mechanism through which leaders’ communication competence translates into improved employee performance within SME contexts, particularly in developing economies. Drawing on leadership communication and motivating language theory, the study proposes that motivating language functions as an important behavioural pathway connecting leaders’ interpersonal communication competence with employees’ work performance. Online survey employed the Perceived Leadership Communication Questionnaire (PLCQ) to measure leaders' Interpersonal Communication Competence, direction-giving items from the Motivating Language Scale (MLS), and Employee Performance Job Assessment Scale. Data were collected from employees working in Malaysian service SMEs and analysed using partial least squares structural equation modelling (PLS-SEM). The findings indicate that leaders’ interpersonal communication competence positively relates to motivating language and employee performance, and motivating language significantly mediates the relationship between communication competence and performance. These results extend leadership communication literature by empirically demonstrating the mediating mechanism of motivating language in SME settings and provide practical insight for organisations seeking to enhance employee performance through communication-based leadership practices. © 2026, Penerbit Universiti Kebangsaan Malaysia. All rights reserved.