Participatory Leadership and its Impact on Human Capital Development, A Case Study: Al-Arabi Hospitals Group

Abstract

This study is aimed at investigating the impact of participatory leadership on the development of human capital within Al-Arabi Hospitals Group, from the perspective of its workforce. Employing a descriptive analytical approach, a questionnaire was administered to all managers, deputy managers, and department heads (totaling 151 individuals) within the organization. Utilizing structural equations modeling with SmartPLS4 statistical analysis software, our findings reveal that the level of participatory leadership application within Al-Arabi Hospitals Group was found to be average, as was the level of human capital development. Our analysis further indicates that participatory leadership has a significant impact on the development of human capital across its dimensions, including knowledge, experience, and skills. We found no differences in responses among respondents based on demographic variables. In conclusion, this research emphasizes the importance of managing and investing in human capital as a strategic asset for Al-Arabi Hospitals Group, thereby giving it a competitive advantage over other hospitals in Palestine. We further recommend the adoption of participatory leadership to ensure stability within the group, optimize its internal resources, and strengthen external partnerships.