IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v12y2022i4p195-d1003901.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Osama Khassawneh & Hamzah Elrehail, 2022. "The Effect of Participative Leadership Style on Employees’ Performance: The Contingent Role of Institutional Theory," Administrative Sciences, MDPI, vol. 12(4), pages 1-13, December.
    • Handle: RePEc:gam:jadmsc:v:12:y:2022:i:4:p:195-:d:1003901
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/12/4/195/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/12/4/195/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Keow Ngang Tang, 2019. "Leadership and Change Management," SpringerBriefs in Business, Springer, number 978-981-13-8902-3, October.
    2. Newey, Whitney & Stouli, Sami, 2021. "Control variables, discrete instruments, and identification of structural functions," Journal of Econometrics, Elsevier, vol. 222(1), pages 73-88.
    3. Osama Khassawneh & Tamara Mohammad & Rabeb Ben-Abdallah, 2022. "The Impact of Leadership on Boosting Employee Creativity: The Role of Knowledge Sharing as a Mediator," Administrative Sciences, MDPI, vol. 12(4), pages 1-14, November.
    4. Aznarahayu Ramli & Nasina Mat Desa, 2014. "The Relationship between Servant Leadership and Organizational Commitment: The Malaysian Perspectives," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(2), pages 111-123, 02-2014.
    5. Nielsen, Bo Bernhard & Raswant, Arpit, 2018. "The selection, use, and reporting of control variables in international business research: A review and recommendations," Journal of World Business, Elsevier, vol. 53(6), pages 958-968.
    6. Xiaowen Huang & Joseph C Rode & Roger G Schroeder, 2011. "Organizational structure and continuous improvement and learning: Moderating effects of cultural endorsement of participative leadership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(9), pages 1103-1120, December.
    7. Takuma Kimura & Mizuki Nishikawa, 2018. "Ethical Leadership and Its Cultural and Institutional Context: An Empirical Study in Japan," Journal of Business Ethics, Springer, vol. 151(3), pages 707-724, September.
    8. Davidson Mghanga Mwaisaka & George K'Aol & Caren Ouma, 2019. "Influence of directive and supportive leadership styles on employee job satisfaction in commercial banks in in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(6), pages 162-174, October.
    9. Richard Nielsen & Felipe Massa, 2013. "Reintegrating Ethics and Institutional Theories," Journal of Business Ethics, Springer, vol. 115(1), pages 135-147, June.
    10. Sophie Lythreatis & Ahmed Mohammed Sayed Mostafa & Xiaojun Wang, 2019. "Participative Leadership and Organizational Identification in SMEs in the MENA Region: Testing the Roles of CSR Perceptions and Pride in Membership," Journal of Business Ethics, Springer, vol. 156(3), pages 635-650, May.
    11. Davidson Mghanga Mwaisaka & George K'Aol & Caren Ouma, 2019. "Influence of participative and achievement oriented leadership styles on employee job satisfaction in commercial banks in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(5), pages 42-53, September.
    12. Yee, Rachel W.Y. & Yeung, Andy C.L. & Edwin Cheng, T.C., 2010. "An empirical study of employee loyalty, service quality and firm performance in the service industry," International Journal of Production Economics, Elsevier, vol. 124(1), pages 109-120, March.
    13. Aznarahayu Ramli & Nasina Mat Desa, 2014. "The Relationship between Servant Leadership and Organizational Commitment: The Malaysian Perspectives," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(2), pages 111-123.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mehdi Bensouda & Mimoun Benali, 2023. "From Fairly Good to Optimal Energy Efficiency Practices within the Moroccan Manufacturing Sector: Are Financial Resources Sufficient?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 478-488, May.
    2. Syed Haider Ali Shah & Mochammad Fahlevi & Eman Zameer Rahman & Muhammad Akram & Kamran Jamshed & Mohammed Aljuaid & Jaffar Abbas, 2023. "Impact of Green Servant Leadership in Pakistani Small and Medium Enterprises: Bridging Pro-Environmental Behaviour through Environmental Passion and Climate for Green Creativity," Sustainability, MDPI, vol. 15(20), pages 1-16, October.
    3. Tatjana Janovac & Goran Djokovic & Aleksandra Pusara & Viktorija Misic & Ksenija Milankovic & Aleksandra Pavicevic & Adrijana Vukovic & Sasa Virijevic Jovanovic, 2023. "Assessment and Ranking of the Behavioural Leadership Model in the Process of Implementing Reforms in Public Sector of the Republic of Serbia Using the PIPRECIA Method," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    4. Osama Khassawneh & Tamara Mohammad & Munther Talal Momany, 2022. "Perceived Overqualification and Job Outcomes: The Moderating Role of Manager Envy," Sustainability, MDPI, vol. 15(1), pages 1-18, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Keisuke Kokubun, 2017. "The Moderating Effect of Gender on the Organizational Commitment-Rewards Relationship," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(7), pages 1-1, June.
    2. Zaman, Shah & Wang, Zilong & Rasool, Samma Faiz & Zaman, Qamar uz & Raza, Hamid, 2022. "Impact of critical success factors and supportive leadership on sustainable success of renewable energy projects: Empirical evidence from Pakistan," Energy Policy, Elsevier, vol. 162(C).
    3. Howladar Mohammad Harisur Rahman & Rahman Md Sahidur, 2021. "The Influence of Servant Leadership on Organizational Citizenship Behavior: the Mediating Effect of Organizational Commitment," South East European Journal of Economics and Business, Sciendo, vol. 16(1), pages 70-83, June.
    4. Lythreatis, Sophie & Mostafa, Ahmed Mohammed Sayed & Pereira, Vijay & Wang, Xiaojun & Giudice, Manlio Del, 2021. "Servant leadership, CSR perceptions, moral meaningfulness and organizational identification- evidence from the Middle East," International Business Review, Elsevier, vol. 30(5).
    5. Kasimu Ssenyange, 2023. "The Impact of Leadership Styles on Government Construction Project Success: A Structural Equation Modelling Approach," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(3), pages 50-75.
    6. Acedo, Francisco J. & Coviello, Nicole & Agustí, María, 2021. "Caution ahead! The long-term effects of initial export intensity and geographic dispersion on INV development," Journal of World Business, Elsevier, vol. 56(6).
    7. Victor Chernozhukov & Iván Fernández‐Val & Whitney Newey & Sami Stouli & Francis Vella, 2020. "Semiparametric estimation of structural functions in nonseparable triangular models," Quantitative Economics, Econometric Society, vol. 11(2), pages 503-533, May.
    8. Saskia Crucke & Marie Servaes & Tom Kluijtmans & Shana Mertens & Eveline Schollaert, 2022. "Linking environmentally‐specific transformational leadership and employees' green advocacy: The influence of leadership integrity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 406-420, March.
    9. Fatoki Olawale, 2023. "Participative Leadership and Employee Job Satisfaction: The Mediating Effects of Psychological Empowerment and Work Engagement," Foundations of Management, Sciendo, vol. 15(1), pages 161-176, January.
    10. Hammad Riaz & Abubakr Saeed, 2020. "Impact of environmental policy on firm's market performance: The case of ISO 14001," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 681-693, March.
    11. Yee, Rachel W.Y. & Guo, Yujuan & Yeung, Andy C.L., 2015. "Being close or being happy? The relative impact of work relationship and job satisfaction on service quality," International Journal of Production Economics, Elsevier, vol. 169(C), pages 391-400.
    12. Erhan Boğan & Bekir Bora Dedeoğlu, 2020. "Hotel employees' corporate social responsibility perception and organizational citizenship behavior: Perceived external prestige and pride in organization as serial mediators," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2342-2353, September.
    13. Jinan Fattah & Mehmet Yesiltas & Tarik Atan, 2022. "The Impact of Knowledge Sharing and Participative Decision-Making on Employee Turnover Intention: The Mediating Role of Perceived Organizational Support," SAGE Open, , vol. 12(4), pages 21582440221, October.
    14. Hammad Riaz & Abubakr Saeed & Muhammad Saad Baloch & Nasrullah & Zeeshan Ahmad Khan, 2019. "Valuation of Environmental Management Standard ISO 14001: Evidence from an Emerging Market," JRFM, MDPI, vol. 12(1), pages 1-14, January.
    15. Angulo-Ruiz, Fernando & Pergelova, Albena & Dana, Leo Paul, 2020. "The internationalization of social hybrid firms," Journal of Business Research, Elsevier, vol. 113(C), pages 266-278.
    16. Jason A. Hubbart, 2023. "Organizational Change: The Challenge of Change Aversion," Administrative Sciences, MDPI, vol. 13(7), pages 1-9, July.
    17. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    18. Meier, Andre & Kock, Alexander, 2021. "Characteristics, Antecedents, and Consequences of Agile R&D Units' Organization - A Conceptual Framework," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 130791, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. Ghadah Alarifi & Nawal Abdalla Adam, 2023. "The Role of Participatory Leadership and Employee Innovative Behavior on SMEs’ Endurance," Sustainability, MDPI, vol. 15(3), pages 1-13, February.
    20. Mulugeta Girma Dibiku, 2023. "Kaizen and Productivity: The Mediating Effect of the Customer-supplier Relationship Using Smart-PLS," Istanbul Management Journal, Istanbul University Business School, vol. 0(94), pages 1-15, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:12:y:2022:i:4:p:195-:d:1003901. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.