Resilience as a shield: self-efficacy and well-being in the face of exploitative leadership

Purpose - Employees' well-being has emerged as a critical issue in the software industry. Therefore, our study examines the detrimental effect of exploitative leadership on subjective well-being directly and through self-efficacy. We also investigate the buffering effect of resilience on this relationship using the conversation of resources (COR). Design/methodology/approach - Data were collected from 585 software industry professionals via two-way self-administered questionnaires. The proposed hypotheses were tested using Process Model 5. Findings - Our study confirms the negative effect of exploitative leadership on subjective well-being, both directly and indirectly via self-efficacy. Furthermore, the findings indicate that resilience reduces the negative effect of exploitative leadership on subjective well-being. Research limitations/implications - Our study contributes to the existing literature on exploitative leadership by demonstrating its detrimental effects on employee’s subjective well-being. It also provides a more nuanced understanding of the unexplored relationship between exploitative leadership and subjective well-being by explaining the mediating role of self-efficacy and the moderating role of resilience. Practical implications - Policymakers and human resource practitioners may design training and development programs to promote morality and ethical behaviors. This will enhance employees' subjective well-being, aligning with SDG 3’s goal of ensuring healthy lives and promoting well-being for all. Originality/value - Our study provides a novel perspective by expanding the nomological network of exploitative leadership to include lower self-efficacy and subjective well-being. It also extends our understating of how resilient employees sustain their well-being under exploitative leadership.