Despotic Leadership and Adaptive Performance: Unravelling the Mediating Role of Toxic Workplace Environment through Conservation of Resources Theory

Abstract

Objective: The importance of adaptive work has increased because of the increasing uncertainty and dynamism within which organizations operate. Although most prior studies have focused on variables that facilitate adaptive behavior, little emphasis has been placed on constraints that limit adaptive behavior. Using the Conservation of Resource (COR) theoretical approach, we will present a conceptual model of how despotic leadership limits adaptive performance through the mediation of toxic workplace environment.

Methodology / Approach / Design: This is a conceptual paper, using the methodology of synthesizing all relevant extant literature related to despotic leadership, toxic workplace environment, adaptive performance and COR theory in order to develop an overall conceptual model. Four conceptual propositions are presented illustrating the relationship among these constructs.

Findings/Results: Our conceptual model suggests that despotic leadership results in long-term resource loss as it undermines psychological safety, autonomy, trust, and positive working relationships. The result is a toxic workplace environment characterized by fear, lack of trust, lack of civility, and feelings of insecurity. Employees expend their physical and emotional resources in managing their negative reactions to these types of environmental stimuli. Therefore there are limited resources remaining to support the behaviors associated with learning, collaboration, experimentation, and behavioral flexibility. Thus, the ability of employees to adapt to changing organizational demands is constrained.

Unique Contribution: The paper represents a unique contribution to the field as it shifts the focus from the traditionally individual level psychological impact of despotic leadership to organizational resource processes. Additionally, it presents toxic work environment as the mechanism that links despotic leadership and reduced adaptive performance. Finally, it extends the use of the COR theory by identifying organizational environments as long term sources of employee resource loss.