Influence of despotic leadership on self efficacy and job satisfaction: The role of leader-member exchange, evidence from Ho Chi Minh City - Vietnam

Abstract

The study was conducted to determine the influence of Despotic Leadership (DL) on employee Job Satisfaction (JS) and Self-Efficacy (SE) and to explore the moderating role of Leader-Member Exchange (LMX). Research data was collected from employees of businesses in Ho Chi Minh City, Vietnam. Through analyzing 394 relevant responses using the PLS-SEM analysis method, the study has shown that despotic leadership negatively impacts job satisfaction and self-efficacy employees have an intermediary role. Besides, the leader-member exchange moderates the relationship between autocratic leadership and employee self-efficacy. From there, it is concluded that some management implications are valuable references for businesses in Ho Chi Minh City to find solutions to increase employee job satisfaction and self-efficacy while reducing the adverse effects of despotic leadership.