Abstract
ABSTRACT This study investigates the effects of paternalistic leadership, a predominant leadership style in Confucian-influenced East Asia, on the growth and innovation of start-up companies, particularly within the information technology sector. Contrary to the prevailing belief that paternalistic leadership stifles innovation, our findings reveal that this leadership style can significantly enhance business performance. This study identifies key mechanisms, such as fostering employee loyalty, improving decision-making processes, and encouraging proactive behaviours, that drive growth under paternalistic leadership. Empirical evidence shows that employees under such leadership exhibit entrepreneurial behaviours marked by innovation, risk-taking, and initiative, leading to measurable improvements in profitability, customer satisfaction, and market share. These results underscore the role of paternalistic leadership in accelerating the success of East Asian start-ups and provide valuable insights for organisations seeking to balance cultural leadership styles with the demands for innovation.
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