Leadership Gone Wrong: Investigating the Effects of Despotic Leadership on Employee Success Through Job Insecurity and Emotional Exhaustion
Muhammad Naeem Sharif (),
Li Zhang (),
Ali Raza (),
Kashif Akram () and
Anna Ivolga ()
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Muhammad Naeem Sharif: Harbin Institute of Technology
Li Zhang: Harbin Institute of Technology
Ali Raza: Northeast Forestry University
Kashif Akram: The Islamia University of Bahawalpur
Anna Ivolga: Stavropol State Agrarian University
Journal of the Knowledge Economy, 2025, vol. 16, issue 4, No 53, 15316-15341
Abstract:
Abstract Employee success holds a significant importance for Pharmaceutical industry. In this regard, despotic leadership disrupts routine operations and stifles innovative working styles. Therefore, the current study addresses the challenges despotic leadership poses to employee success. Based on the conservation of resource theory, this study explores the impact of despotic leadership on employee success. Additionally, the research investigates the mediating role of job insecurity caused by despotic leadership and assesses the moderating impact of emotional exhaustion, which further fuels the situation. For experimental purposes, this study collects data from 305 employees in Pakistan’s pharmaceutical sector using a time-lagged approach. The statistical outcomes underscore that despotic leadership hinders employee success, as employees perceive this as job insecurity since job insecurity also serves as a significant mediator between despotic leadership and employee success. In further analysis, the study determines that emotional exhaustion moderates the relationships between despotic leadership and employee success, as well as between despotic leadership and job insecurity. Based on the underlined outcomes, it is recommended that policymakers prioritize leadership training, promote innovation, and address employee well-being concerns to enhance organizational success. These initiatives are necessary to foster ethical leadership, job security, and a supportive environment in pharmaceutical sector.
Keywords: Conservation of resource theory; Despotic leadership; Emotional exhaustion; Employee success; Job insecurity; Pharmaceutical industry (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02552-1
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