When despotic leadership is more detrimental for employee job outcomes? Role of individual-level power distance orientation

Purpose Using social exchange and power-dependence theories, this study advances the emergent debate on the dark side of leadership by examining the impact of despotic leadership style on employees’ supervisor-rated job performance, job satisfaction and turnover intention with individual-level power distance orientation as a moderator. Design/methodology/approach We collected multisource and time-lagged survey data in two waves from 65 leaders and 300 subordinates as paired responses working in different banks, telecom and IT companies. Findings It was found that employees’ exposure to despotic leadership harms their job performance and job satisfaction and has a positive effect on their turnover intention. In line with our prediction, low power distance orientation employees react more strongly to despotic leadership while high power distance orientation mitigates its effects on employee job outcomes. Practical implications Despotic behavioral tendencies must be taken into consideration while selecting and appointing leaders. Organizational leaders should also refrain from opportunistic and exploitative use of their followers' efforts. Originality/value This study adds to the emerging literature on the dark side of leadership by examining the relationship of despotic leadership style with employee job outcomes. The unique contribution of this study is the examination of individual-level power distance orientation as the boundary condition of these relationships.