The Effect of Participative Leadership Style on Employees’ Performance: The Contingent Role of Institutional Theory

Osama Khassawneh () and Hamzah Elrehail
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Osama Khassawneh: Lazaridis School of Business and Economics, Wilfrid Laurier University, Waterloo, ON N2L 3C5, Canada
Hamzah Elrehail: Department of Leadership and Organizational, Abu Dhabi School of Management, Abu Dhabi 999041, United Arab Emirates

Administrative Sciences, 2022, vol. 12, issue 4, 1-13

Abstract: This study aimed to examine the moderating role of institutional theory in the association between participative leadership style and various outcomes, such as employee loyalty and job performance in organizations. A cross-sectional research design was employed, where data were gathered from 347 participants from all managerial levels in the United Arab Emirates (UAE). The findings demonstrated how the level of complexity of the institutional theory reduces the positive relationship between participative leadership style and employee loyalty, negatively affecting job performance. The current study contributes to the existing leadership literature by showing that participatory leaders do not behave similarly across various degrees of institutional theory complexity. The findings suggest that the higher the complexity of institutionalism, the wider the gap between leaders and subordinates, so implementing the participative style may become problematic in some circumstances.

Keywords: employee loyalty; subordinate; institutional theory; job performance; leader; participative leadership (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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