Leader-follower power-sharing and employee performance: the moderating role of achievement orientation, management control, leader competence, and leader integrity

Purpose This study examines the mechanisms and conditions under which leader-follower power-sharing is associated with employee performance. It integrates transaction cost analysis (TCA) and social exchange theory (SET) to explore the moderating roles of achievement orientation, management control, leader competence, and leader integrity. Design/methodology/approach The research utilizes a quantitative approach, collecting data from 260 executives in leadership positions in Ghana. Multiple regression analysis with SPSS 25 was applied to test the hypotheses. Findings The results reveal that leader-follower power-sharing has a significant positive association with employee performance. Achievement orientation, leader competence, and leader integrity strengthen this relationship. Although the study hypothesized that management control would weaken the relationship between leader-follower power-sharing and employee performance, the moderating effect was negative but not statistically significant. Research limitations/implications Future research could explore cross-cultural comparisons and longitudinal studies to deepen the understanding of power-sharing dynamics in diverse organizational contexts. Practical implications The findings provide guidelines for leaders to strategically use power-sharing practices to enhance performance, emphasizing the importance of leader traits such as competence and integrity. Originality/value This study bridges TCA and SET to provide a theoretical understanding of power-sharing and its impact on employee performance. It offers actionable insights for leaders seeking to implement effective empowerment strategies while balancing trust and control mechanisms.