I cannot be creative due to my exploitative leader! A moderated mediation interplay of leader–member exchange quality and knowledge hiding

Abstract

PurposeWith an emphasis on displaced aggression theory and social exchange theory, this study aims to investigate the harmful effects of exploitative leadership (EL) on employee creativity (EC) through the mediating role of knowledge hiding (KH). Moreover, this study examines the boundary effects of leader–member exchange (LMX) to explore conditions under which KH is more or less likely to occur.Design/methodology/approachThe study employed time-lagged (i.e. three-wave), multisource (i.e. self-rated and peer-rated) research design to collect data from employees working in Pakistani service sector organizations. The study analyzed 323 responses using SMART PLS (v 3.3.3) to assess the measurement model and the structural model.FindingsThe findings reveal that EL is positively related to KH and negatively related to EC. The results also show partial mediating role of KH in the indirect relationship between EL and EC. Besides, the study also found that LMX moderates the positive relationship between EL and KH, and the negative relationship between EL and EC.Practical implicationsThe study divulges interesting findings that subordinates at high-quality LMX relationships (i.e. in-group members) are more susceptible to the harmful effects of supervisory unjust treatment than at low-quality LMX relationships (i.e. out-group members). Thus, occurrence context of KH, i.e. EL should be minimized through appropriate organizational interventions.Originality/valueThis study contributes to the leadership and knowledge management literature by testing a hitherto unexplored moderated mediation model.