Abstract
Using data from 76 Chinese and Taiwanese firms including 470 CEO’s immediate subordinates, this study investigates the impact of authoritarian and benevolent chief executive officer (CEO) leadership on employee and firm performance, ,as well as the moderating role of CEO competence on such relationships. The result from the hierarchical linear model analyses shows the cross-level impact of CEO authoritarian and benevolent leadership on individual performance would only occur when the employees perceived their CEO as a competent leader. In addition, results from hierarchical regression analyses indicate that the influences of CEO leadership on organizational performance at firm level are significantly moderated by CEO competence image as well, only that the directions of moderating effect on authoritarian and benevolent effectiveness were reversed. Overall, this study suggests that upper-echelons theory and paternalistic theory should be extended to encompass the idea that managerial competence affects the association between top managers and organizational outcomes. Limitations and implications for future research are discussed.
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