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

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.