Abstract
The aim of this study is to develop an integrative model linking the effect of authoritarian leadership (at the individual level) and differential leadership (at the team level) on employee turnover intention, and further explore the moderating role of the in-group/out-group on the above-mentioned relationships. We collected a sample of 624 supervisor–subordinate dyads from 87 teams in Mainland China and Taiwan. We find that, at the individual level, authoritarian leadership is positively related with employee turnover intention, and the relationship will be enhanced especially when the subordinate is an in-group member (rather than an out-group member). Through hierarchical linear modeling analysis, we find a negative relationship between differential leadership and employee turnover intention, significantly moderated by the within-team mean degree and the within-team variance degree of in-group/out-group. Contributions, limitations, and future research directions are discussed.
Similar content being viewed by others
References
Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park, CA: Sage.
Albert, R. D. (1996). A framework and model for understanding Latin American and Latino/Hispanic cultural patterns. In D. Landis & R. S. Bhagat (Eds.), Handbook of intercultural training (2nd ed., pp. 327–348). Thousand Oaks, CA: Sage.
Aquino, K., Griffeth, R. W., Allen, D. G., & Hom, P. W. (1997). Integrating justice constructs into the turnover process: A test of a referent cognitions model. Academy of Management Journal, 40, 1208–1227.
Balliet, D., Wu, J., & De Dreu, C. K. W. (2014). Ingroup favoritism in cooperation: A meta-analysis. Psychological Bulletin, 14, 1556–1581.
Ballinger, G. A., Lehman, D. W., & Schoorman, F. D. (2010). Leader–member exchange and turnover before and after succession events. Organizational Behavior and Human Decision Processes, 113, 25–36.
Bartko, J. J. (1976). On various intra-class correlation reliability coefficients. Psychological Bulletin, 83, 762–765.
Bass, B. M. (1998). Transformational leadership: Industrial, military, and educational impact. Mahwah, NJ: Erlbaum.
Bauer, T. N., Erdogan, B., Liden, R. C., & Wayne, S. J. (2006). A longitudinal study of the moderating role of extraversion: Leader-member exchange, performance, and turnover during new executive development. Journal of Applied Psychology, 91, 298–310.
Bliese, P. D. (2000). Within-group agreement, non-independence, and reliability: Implications for data aggregation and analysis. In K. J. Klein & S. W. Kozlowski (Eds.), Multilevel theory, research, and methods in organizations: Foundations, extensions and new directions (pp. 349–381). San Francisco: Jossey-Bass.
Boies, K., & Howell, J. M. (2006). Leader-member exchange in teams: An examination of the interaction between relationship differentiation and mean LMX in explaining team-level outcomes. Leadership Quarterly, 17, 246–257.
Burt, R. S. (1992). Structural holes. Cambridge, MA: Harvard University Press.
Carton, A. M., & Cummings, J. N. (2012). A theory of subgroups in work teams. Academy of Management Review, 37, 441–470.
Chan, S. C. H., Huang, X., Snape, E., & Lam, C. (2013). The Janus face of paternalistic leaders: Authoritarianism, benevolence, subordinates’ organization-based self-esteem, and performance. Journal of Organizational Behavior, 34, 108–128.
Chen, X. P., Eberly, M. B., Chiang, T. J., Farh, J. L., & Cheng, B. S. (2014). Affective trust in Chinese leaders: Linking paternalistic leadership to employee performance. Journal of Management, 40, 796–819.
Cheng, B. S. (1995). Chaxugeju and Chinese organizational behavior. Indigenous Psychological Research in Chinese Societies, 3, 142–219 (in Chinese).
Cheng, B. S., Chou, L. F., & Farh, J. L. (2000). A triad model of paternalistic leadership: The constructs and measurement. Indigenous Psychological Research in Chinese Societies, 14, 3–64 (in Chinese).
Cheng, B. S., Chou, L. F., Huang, M. P., Farh, J. L., & Peng, S. (2003). A triad model of paternalistic leadership: evidence from business organization in Mainland China. Indigenous Psychological Research in Chinese Societies, 20, 209–252 (in Chinese).
Cheng, B. S., Chou, L. F., Wu, T. Y., Huang, M. P., & Farh, J. L. (2004). Paternalistic leadership and subordinates responses: Establishing a leadership model in Chinese organizations. Asian Journal of Social Psychology, 7, 89–117.
Cheng, B. S., Huang, M. P., & Chou, L. F. (2002). Paternalistic leadership and its effectiveness: Evidence from Chinese organizational teams. Journal of Psychology in Chinese Societies, 3, 85–112 (in Chinese).
Cheng, M. Y., & Wang, L. (2015). The mediating effect of ethical climate on the relationship between paternalistic leadership and team identification: A team-level analysis in the Chinese context. Journal of Business Ethics, 129, 639–654.
Cohen, A. (1993). Organizational commitment and turnover: A meta-analysis. Academy of Management Journal, 36, 1140–1157.
Cotton, J. L., & Tuttle, J. M. (1986). Employee turnover: A meta-analysis and review with implications for research. Academy of Management Review, 11, 55–70.
Demirtas, O., & Akdogan, A. A. (2015). The effect of ethical leadership behavior on ethical climate, turnover intention, and affective commitment. Journal of Business Ethics, 13, 59–67.
Evans, M. G. (1985). A monte carlo study of the effects of correlated method variance in moderated multiple regression analysis. Organizational Behavior and Human Decision Processes, 36(3), 305–323.
Farh, J. L., & Cheng, B. S. (2000). A cultural analysis of paternalistic leadership in Chinese organizations. In J. T. Li, A. S. Tsui, & E. Weldon (Eds.), Management and organizations in the Chinese context (pp. 94–127). London: Macmillan.
Farh, J. L., Cheng, B. S., Chou, L. F., & Chu, X. P. (2006). ‘Authority and benevolence: employees’ responses to paternalistic leadership in China’. In A. S. Tsui, Y. Bian, & L. Cheng (Eds.), China’s domestic private firms: Multidisciplinary perspectives on management and performance (pp. 230–260). New York: M. E. Sharpe.
Farh, J. L., Liang, J., Chou, L. F., & Cheng, B. S. (2008). Paternalistic leadership in Chinese organizations: Research progress and future research directions. In C. C. Chen & Y. T. Lee (Eds.), Leadership and management in China: Philosophies, theories, and practices (pp. 171–205). Cambridge: Cambridge University Press.
Fei, X. T. (1992). From the soil: The foundations of Chinese society. Berkeley: University of California Press.
Graen, G. B., & Scandura, T. A. (1987). Toward a psychology of dyadic organizing. Research in Organizational Behavior, 9, 175–208.
Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover: Updated moderator tests, and research implications for the next millennium. Journal of Management, 26, 463–488.
Guo, X. W. (2011). Reviews on the research of supervisor-subordinate relationship in Chinese context: Leader-member exchange and supervisor-subordinate guanxi. Nankai Business Review, 14, 61–68. (in Chinese).
Heine, S. J., & Lehman, D. R. (1997). Culture, dissonance, and self-affirmation. Personality and Social Psychology Bulletin, 23, 389–400.
Henderson, D. J., Liden, R. C., Glibkowski, B. G., & Chaudhry, A. (2009). LMX differentiation: A multilevel review and examination of its antecedents and outcomes. Leadership Quarterly, 4, 517–534.
Hofstede, G. H. (1980). Culture’s consequences: International differences in work-related values. Beverly Hills, CA: Sage.
Hsu, W. L., Cheng, B. S., Kuo, C. C., & Hu, H. H. (2006). Differential leadership. In B. S. Cheng & D. Y. Jiang (Eds.), Chinese organizational behavior: Topics, research and publication (pp. 84–120). Taipei: Hwatai (in Chinese).
Hu, H. H., Hsu, W. L., & Cheng, B. S. (2004). The reward allocation decision of the Chinese manager: Influences of employee categorization and allocation situation. Asian Journal of Social Psychology, 7, 221–232.
Huang, X., Xu, E., Chiu, W., Lam, C., & Farh, J. (2015). When authoritarian leaders outperform transformational leaders: firm performance in a harsh economic environment. Academy of Management Discoveries, 1, 180–200.
James, L. R., Demaree, R. G., & Wolf, G. (1984). Estimating within-group interrater reliability with and without response bias. Journal of Applied Psychology, 69, 85–98.
Jiang, D. Y., & Chang, W. C. (2010). Differential leadership and subordinate effectiveness in Chinese context. Indigenous Psychological Research in Chinese Societies, 33, 109–177 (in Chinese).
Jiang, D. Y., & Cheng, B. S. (2014). Differential leadership in the Chinese context: Its nature and influence process. Indigenous Psychological Research in Chinese Societies, 42, 285–357 (in Chinese).
Jiang, D. Y., Cheng, M. Y., Wang, L., & Baranik, L. (2014). Differential leadership: Reconceptualization and measurement development. Paper presented at the meeting of the 29th Annual SIOP Conference, Honolulu, Hawaii.
Jost, J. T., Pelham, B. W., & Carvallo, M. (2002). Non-conscious forms of system justification: Cognitive, affective, and behavioral preferences for higher status groups. Journal of Experimental Social Psychology, 38, 586–602.
Klein, K. J., & Kozlowski, S. W. J. (2000). From micro to meso: Critical steps in conceptualizing and conducting multilevel research. Organizational Research Methods, 3, 211–236.
Kreft, I., & De Leeuw, J. (1998). Introducing multilevel modeling. London: Sage.
Lau, D. C., & Murnighan, J. K. (1998). Demographic diversity and faultlines: The compositional dynamics of organizational groups. Academy of Management Review, 23, 325–340.
Li, A. N., & Liao, H. (2014). How do leader-member exchange quality and differentiation affect performance in teams? An integrated multilevel dual process model. Journal of Applied Psychology, 2014(99), 847–866.
Liden, R. C., Erdogan, B., Wayne, S. J., & Sparrowe, R. T. (2006). Leader-member exchange, differentiation, and task interdependence: Implications for individual and group performance. Journal of Organizational Behavior, 27, 723–746.
Luo, J. D., & Cheng, M. Y. (2009). The negative effects of ganging-up on general trust in organizations. An Academic Edition of ManaMaga, 3, 3–13 (in Chinese).
Maertz, C. P., & Campion, M. A. (2004). Profiles in quitting: integrating process and content turnover theory. Academy of Management Journal, 47, 566–582.
Maertz, C. P., & Griffeth, R. W. (2004). Eight motivational forces and voluntary turnover: A theoretical synthesis with implications for research. Journal of Management, 30, 667–683.
Martin, J. (1981). Relative deprivation: A theory of distributive injustice for an era of shrinking resources. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior (Vol. 3, pp. 53–107). Greenwich, CT: JAI Press.
McAllister, D. J. (1995). Affect-and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38, 24–59.
Meyer, J. P., Allen, N. J., & Smith, C. A. (1993). Commitment to organizations and occupations: Extension and test of a three-component conceptualization. Journal of Applied Psychology, 78, 538–551.
Mobley, W. H. (1977). Intermediate linkages in the relationship between job satisfaction and employee turnover. Journal of Applied Psychology, 62, 237–240.
Niu, C. P., Wang, A. C., & Cheng, B. S. (2009). Effectiveness of a moral and benevolent leader: Probing the interactions of the dimensions of paternalistic leadership. Asian Journal of Social Psychology, 12, 32–39.
Park, T.-Y., & Shaw, J. D. (2013). Turnover rates and organizational performance: A meta-analysis. Journal of Applied Psychology, 98, 268–309.
Pellegrini, E. K., & Scandura, T. A. (2008). Paternalistic leadership: A review and agenda for future research. Journal of Management, 34, 566–593.
Pickett, C. L., & Brewer, M. B. (2001). Assimilation and differentiation needs as motivational determinants of perceived in-group and out-group homogeneity. Journal of Experimental Social Psychology, 37, 341–348.
Podsakoff, P. M., & Organ, D. W. (1986). Self-reports in organizational research: Problems and prospects. Journal of Management, 12(4), 531–544.
Scandura, T. A. (1999). Rethinking leader-member exchange: An organizational justice perspective. Leadership Quarterly, 10(1):25–40.
Schuh, S. C., Zhang, X., & Tian, P. (2013). For the good or the bad? Interactive effects of transformational leadership with moral and authoritarian leadership behaviors. Journal of Business Ethics, 116, 629–640.
Seers, A., Petty, M., & Cashman, J. (1995). Team-member exchange under team and traditional management. Group and Organization Management, 20, 18–38.
Tett, R., & Meyer, J. (1993). Job satisfaction, organizational commitment, turnover intention and turnover: Path analyses based on meta-analytic findings. Personnel Psychology, 46, 259–293.
Tse, H. H. M., Lam, C. K., Lawrence, S. A., & Huang, X. (2013). When my supervisor dislikes you more than me: The effect of dissimilarity in leader-member exchange on coworkers’ interpersonal emotion and perceived help. Journal of Applied Psychology, 98, 974–988.
Turner, J. C., Brown, R. J., & Tajfel, H. (1979). Social comparison and group interest in ingroup favoritism. European Journal of Social Psychology, 9, 187–204.
Wang, A. C., & Cheng, B. S. (2010). When does benevolent leadership lead to creativity? The moderating role of creative role identity and job autonomy. Journal of Organizational Behavior, 31, 106–121.
Wasserman, S., & Faust, K. (1994). Social network analysis: Methods and applications. New York: Cambridge University Press.
Wayne, S. J., Shore, L. M., & Liden, R. C. (1997). Perceived organizational support and leader-member exchange: A social exchange perspective. Academy of Management Journal, 37, 765–802.
Wu, J. B., Tsui, A. S., & Kinicki, A. J. (2010). Consequences of differentiated leadership in groups. Academy of Management Journal, 53, 90–106.
Wu, M., Huang, X., Li, C., & Liu, W. (2012). Perceived interactional justice and trust-in-supervisor as mediators for paternalistic leadership. Management and Organization Review, 8(1), 97–121.
Wu, T. Y. (2008). The mediating process of trust and the moderating effect of emotional intelligence on a Chinese supervisor’s authoritarianism leadership and a subordinate’s job satisfaction and organizational commitment. Indigenous Psychological Research in Chinese Societies, 30, 3–63 (in Chinese).
Wu, T. Y., Hsu, W. L., & Cheng, B. S. (2002). Expressing or suppressing anger: Subordinates’ anger responses to supervisors’ authoritarian behaviors in a Taiwan enterprise. Indigenous Psychological Research in Chinese Societies, 18, 3–49 (in Chinese).
Zhang, Y., Huai, M. Y., & Xie, Y. H. (2014). Paternalistic leadership and employee voice in China: A dual process model. Leadership Quarterly, 26(1), 25–36.
Acknowledgments
We thank Section Editor Alexander Newman and the two anonymous reviewers for their insightful feedback on this article. This research is supported by the National Natural Science Foundation of China (71402019, 71402164, 71572060, 71271046), the National Social Science Foundation of China (11&ZD153), Program for Liaoning Excellent Talents in University (WJQ2015013), and Ministry of Science and Technology of Taiwan (104-2410-H-035-038-).
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Wang, L., Cheng, MY. & Wang, S. Carrot or Stick? The Role of In-Group/Out-Group on the Multilevel Relationship Between Authoritarian and Differential Leadership and Employee Turnover Intention. J Bus Ethics 152, 1069–1084 (2018). https://doi.org/10.1007/s10551-016-3299-z
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-016-3299-z