The impact of participative leadership on organizational climate: an empirical study in Yemeni telecommunication companies

While participative leadership is widely acknowledged as a catalyst for a positive organizational climate, its multidimensional mechanisms remain underexplored in highly volatile and centralized emerging markets. Addressing this critical theoretical gap, this study decomposes participative leadership to empirically examine how its structural dimensions (decision-making and empowerment) versus its cognitive-relational dimensions (information flow and psychological safety) uniquely influence organizational climate within the crisis-driven Yemeni telecommunications sector. Employing covariance-based structural equation modeling (CB-SEM) on a sample of 206 administrative leaders, the findings reveal a compelling empirical paradox. Formal structural decentralization specifically, participation in decision-making and delegation yields no significant direct impact on the organizational climate. Conversely, relational and cognitive mechanisms act as the primary structural drivers, accounting for 65.7% (R2 = 0.657) of the total variance. Theoretically, this research advances Likert’s Participative Management Theory (System 4) and Psychological Empowerment Theory by demonstrating that in high-uncertainty environments, employees perceive sudden structural delegation as a liability transfer rather than genuine empowerment unless it is grounded in transparent communication and psychological security. Practically, the study provides a strategic roadmap for leaders in developing economies, urging them to dismantle bureaucratic silos and prioritize psychological safety over formal delegation to sustain institutional resilience and employee innovation.