Paternalistic Leadership and Followers’ Innovative Behavior in Pakistan: The mediatory role of Ethical Climate, Psychological Empowerment and Team Identification

Abstract

Paternalistic leadership is normally practiced in high power distance and collectivist cultures. These are mostly of eastern origin like in Pakistan. However, its effectiveness in terms of innovation remains inconclusive. We tend to answer this as well as propose a mechanism of how it affects innovation. More specifically, we tend to explore the role of ethical climate, team Identification, and psychological empowerment on the relationship between paternalistic leadership, and innovative behavior. We proposed a theoretical framework, modifying Cheng & Wang (2015) model to incorporate outcomes in form of innovation as well as the mediatory role of psychological empowerment. We hypothesize that paternalistic leadership is characterized by 1. Authoritarian, 2. Benevolent, and 3. Moral Leadership styles inculcate a positive ethical climate, as well as psychological empowerment among their subordinates. These factors would lead towards Team Identification, and further improves Innovative Behavior. We classified Ethical Climate into 1. Egoism on one end, and 2. Benevolence, and 3. Principled on another end. Empirical validity was established by conducting a survey using a close-ended questionnaire. Data was collected from 314 subordinate employees and analyzed using confirmatory factor analysis and structured equation modeling. Results suggested that all forms of paternal leadership namely Authoritarian, Benevolent, and moral leadership seem to positively enforce two positive forms of ethical climate i.e. Benevolent, and Principle at the same time. They also seem to positively affect Psychological Empowerment. Moral leadership seems to negatively impact the Egoistic climate as expected, however; the authoritarian form seems to positively enforce egoism. The principle, and egoistic climate as well as Psychological Empowerment seems to positively affect team identification. However, the egoistic climate seems to curb innovative behavior. Whereas principled and Psychological Empowerment seems to promote it. The benevolent climate didn’t seem to affect either team identification or innovation. Benevolent, and moral leadership also seems to directly and positively impact Team Identification. Benevolent leadership also seems to have a direct positive effect on innovation, which is also impacted by Team Identification. Hence, the finding suggested that egoism positively mediates the impact of moral leadership on innovation but negatively mediates its effect on team identification. Similarly, it negatively meditates the effect of authoritarian leadership on innovation, but positively moderate team identification. Principled climate as well as Psychological empowerment, positively mediate the effect of all three forms of paternal leadership on both innovation and team identification, as well as on innovation through second-order mediation of team identification. The major findings, theoretical contributions, and limitations were discussed.