Paternalistic leadership and innovation: the moderating effect of environmental dynamism

The purpose of this paper is to focus on how the three elements of paternalistic leadership – authoritarianism, benevolence and moral leadership – affect organizational innovation – both explorative and exploitative innovation – in Chinese enterprises. It also examines the moderating effect of environmental dynamism on the relationship between paternalistic leadership and organizational innovation.

Data on 190 superior–subordinate dyads are collected using questionnaire surveys. The supervisors are recruited from the MBA program in a famous university in the city of Hefei, China, who are also asked to distribute subordinate questionnaires to their subordinates. The hierarchical regression analysis is conducted to test the hypotheses by using SPSS 22.0.

The analysis of 190 superior–subordinate dyads shows that benevolent and authoritarian leadership is positively related to exploratory innovation, while moral leadership has no significant impact on exploratory innovation. The results also reveal that all three elements of paternalistic leadership is, in general, positively correlated with exploitative innovation. Furthermore, environmental dynamism moderates the relationship between paternalistic leadership and innovation. In a dynamic environment, moral leadership has a stronger positive effect on innovation, but only on exploratory innovation; whereas authoritarian leadership exerts more detrimental effects on both exploratory and exploitative innovation.

The current work contributes to understanding the relationship between paternalistic leadership and innovation in the Chinese cultural context by examining the effects of the three elements of paternalistic leadership separately and by showing how these effects can be moderated by environmental dynamism.