Organizational virtuousness and job performance in Japan: does happiness matter?

Purpose This paper aims to examine the effect of subjective well-being, often referred to as happiness, on the relationship between organizational virtuousness and job performance among Japanese employees. The concept of happiness has been receiving more attention over the past decade as research suggests that it may be a source of greater performance. Design/methodology/approach This research uses a questionnaire survey and conditional process analysis among Japanese managers and front-line workers within Japanese firms in Japan. Findings This paper found that positive subjective well-being partially mediates the relationship between general organizational virtuousness and self-management-related job performance, while it acts as a moderator in the relationship between general organizational virtuousness and leadership-related job performance. Practical implications These findings indicate that in the Japanese context, the firm’s investment in organizational virtuousness will increase one part of job performance, but that investment may not be sufficient in itself to positively affect leadership competency, unless it also pays attention to its employees’ positive subjective well-being. Originality/value Based on this growing realization of the importance of subjective well-being, or happiness, and the lack of academic research in Japan on its impact on organization, this paper investigates its effect on employees’ ability to manage their own tasks and lead others.