The existing research rarely explains the value of authoritarian leadership in small- and medium-sized enterprises (SMEs). The purpose of this study is to explore how authoritarian leadership facilitates employee followership behaviors of the SMEs in China by considering the moderating effects of cooperative goal interdependence and leader behavioral integrity.
This research tested hypotheses with a two-wave survey from a sample of 258 respondents from SMEs in China. Hypotheses are tested using hierarchical regression analyses.
Findings of the study have indicated the instrumental function of authoritarian leadership in facilitating employee followership behavior in SMEs. In particular, this study shows that the influence of authoritarian leadership on followership behavior was positively related when employees have high cooperative goal interdependence with authoritarian leaders, and when employees perceive a leader's high behavioral integrity.
The study will help SMEs to understand that authoritarian leadership should seek optimal levels of cooperative goals with employees and integrate achievement goals into their career development strategy to enhance their followership behavior. In addition, authoritarian leadership should strive to take actions consistent with their words to guarantee the relationship between achieving goals and sharing mutual goals with employees.
The study contributes to the literature by addressing an important yet under-researched area, i.e. the effectiveness of authoritarian leadership in SMEs. Authoritarian leadership, a demanding and controlling leadership style, is often criticized by scholars. This study elaborates on a three-way interaction implied by self-determination theory in predicting followership behavior. It specifies the different roles of two situational factors (cooperative goal interdependence and leader behavior integrity) in affecting employees' followership behavior.
