Superior-Subordinate Relationships and Satisfaction in Indian Small Business Enterprises

Abstract

This paper has used the hierarchy-based power system by French and Raven (1959) for researching the motivational potential in small business manufacturing enterprises. Studies in this area have been conducted but most of them are in the US, a country that is characterized by favourable demographic and other infrastructural environmental factors. However, this study used data from small business enterprises in India which is a fast developing economy though it does not yet have the logistics and the techno-economic infrastructure like the one in the US. One primary objective of this study was to see if the findings from an emerging economy are different from those of developed countries. Another objective was to get insights into the hierarchical motivation dynamics in the Indian enterprises. Indian environment is different from the US' in two important respects: the existence of high power-distance in the organizational hierarchies (as opposed to low power-distance in the US), and the market life cycle driven maturity level of Michel Porter's (1985) industry forces. The ultimate objective of this study was to investigate the relationship between bases of leader power and several criterion variables such as commitment, satisfaction, intent to leave, and compliance. Some of the findings of the study are as follows: The power bases are influential predictors in the US, a society that is characterized by high level of individualistic materialism, low power-distance, and strong entrepreneurial mental behaviour. In India, the power bases are likely to be even more influential because of the society's unique socio-cultural characteristics. India's social environment is high on power-distance that commands loyalty and possibly accountability in small business sector. The influence of Confucian philosophy and Gandhi's values are likely factors that differentiate India's culture base from that of the US. The results of this study are quite consistent with many of the findings of more recent studies done in the US. There were some differences between the findings of the present and other recent studies which may be attributed to the type of professionals who participated in this study and the socio-economic and power-distance driven cultural differences between the US and India. One important limitation of the present study is that the relationships discussed are correlational, not causal. Experimental studies are needed to investigate causal links between the bases of leader power and criterion variables. Moreover, further studies of superior-subordinate relationships and their effects on motivation and compliance using India's culture factors are needed to determine the relevance and applicability of US-based studies in India.