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15(4)2025

The influence of despotic leadership on innovative behavior in Ho Chi Minh City businesses: The mediating role of leader-member exchange


Author - Affiliation:
Anh Tuan Tran - Hoa Sen University, Ho Chi Minh City , Vietnam
Thinh Thi Thu Duong - Nong Lam University, Ho Chi Minh City , Vietnam
Minh Thi Binh Nguyen - Nong Lam University, Ho Chi Minh City , Vietnam
Corresponding author: Anh Tuan Tran - anhtrantuan804@gmail.com
Submitted: 23-10-2024
Accepted: 17-12-2024
Published: 15-01-2025

Abstract
This study examines the impact of despotic leadership on employees’ innovative behavior, with a particular focus on the mediating role of leader-member exchange in businesses based in Ho Chi Minh City. Based on the social exchange theory, conservation of resources theory, and leader-member exchange theory, four hypotheses were developed to guide the research. Data was gathered from 308 employees through an online survey using convenience sampling. The analysis was conducted using Smart-PLS 3 with Partial Least Squares Structural Equation Modeling (PLS-SEM) to explore relationships between variables. The findings reveal that despotic leadership has a negative influence on both leader-member exchange and employees’ innovative behavior, confirming that leader-member exchange serves as a mediator in this relationship. This suggests that fostering positive leader-member exchanges could mitigate the harmful effects of despotic leadership on innovation. The study offers both theoretical and practical implications for promoting innovative practices in businesses. Moreover, it provides valuable insights for leaders in Ho Chi Minh City, aiming to foster a more supportive work environment.

JEL codes
M12; M54; J53

Keywords
despotic leadership; employee innovative behavior; leader-member exchange

Full Text:
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