The Dark Side of Leadership: Exploring the Impact of Despotic Leadership on Employees’ Intrapreneurial Behavior through Happiness and Self-Efficacy

Abstract

This paper examines the negative impacts of despotic leadership on intrapreneurial behavior of employees with a special focus on the underlying affective and cognitive processes. Based on the social cognitive theory and the broaden-and-build theory, we discuss the role of happiness in the workplace and self-efficacy in mediating the connection between authoritarian leadership and intrapreneurial engagement. Both online and face-to-face surveys were used to collect the data on 700 fulltime employees in manufacturing organizations in Pakistan. The structural equation modelling indicated that despotic leadership has a significant negative impact on intrapreneurial behaviors, both directly and indirectly, through decreased happiness and self-efficacy. Also, a chain mediation effect showed that affective well-being enhances cognitive confidence, which, together with intrapreneurial outcomes, is strengthened. The findings contribute to the body of current literature emphasizing the psychosocial mechanisms by which the destructive leadership inhibits the innovation and agency of employees. Theoretical and practical implications consist of the necessity to reduce the authoritarian attitude and promote supportive work conditions to provide the employees with sufficient psychological resources and entrepreneurial potential.