Effect of dark side leadership and leader-member exchange on corporate performance: Mediating role of employee engagement
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Author(s)Sunanta WigunaLink to ORCID Index: https://orcid.org/0000-0002-6684-2978
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Etty MurwaningsariLink to ORCID Index: https://orcid.org/0000-0002-9720-6392
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Yvonne Augustine SudibyoLink to ORCID Index: https://orcid.org/0009-0004-6344-962X
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DOIhttp://dx.doi.org/10.21511/ppm.21(2).2023.28
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Article InfoVolume 21 2023, Issue #2, pp. 267-279
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269 Downloads
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Creative Commons Attribution 4.0 International License
Optimized corporate performance assumes that financial and non-financial performance can be achieved through effective collaboration between leaders and employees. This study analyzes the mediation of employee engagement on the connection between dark side leadership and leader-member exchange on corporate performance in Indonesia. This study used a mixed methods approach by distributing questionnaires to 1,013 respondents consisting of supervisors and managers and conducting intensive interviews with 20 respondents with more than 25 years of work experience to strengthen the perception of answers. The paper uses multiple linear regression analysis. The regression results show that dark side leadership (β = –0.228, ρ = 0.000) and leader-member exchange (β = 0.424, ρ = 0.000) affect employee engagement. Next, leader-member exchange (β = 0.176, ρ = 0.008) and employee engagement (β = 0.391, ρ = 0.000) affect corporate performance, while dark side leadership has no effect (β = 0.020, ρ = 0.400). Finally, employee engagement mediates the effect of dark side leadership and leader-member exchange on corporate performance. This finding indicates that the comfort level of employees at work will decrease if a leader demonstrates a dark side behavior that can affect his/her performance, which later impacts corporate performance. Furthermore, the novelty contribution of dark side leadership measurements on the cultural and emotional dimensions can impact employee turnover intention. This study offers implications for practitioners to conduct selective assessments at the beginning of leader recruitment and control internal leader assessments to create effective organizational behavior.
Acknowledgment
This paper is not supported by grants or scholarship and is free from conflict of interest.
- Keywords
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JEL Classification (Paper profile tab)D22, D91, M41
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References50
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Tables8
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Figures1
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- Figure 1. Conceptual framework
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- Table 1. Descriptive statistics
- Table 2. Multiple linear regression (Model 1)
- Table 3. Multiple linear regression (Model 2)
- Table 4. Multiple linear regression: Testing mediation effect of employee engagement
- Table 5. Expansion test of the emotional and cultural dimensions’ effect on employee engagement
- Table 6. Expansion test of the emotional and cultural dimensions’ effect on corporate performance
- Table 7. Sensitivity test of earlier measurements compared to new measurements (Novelty) in model 1
- Table 8. Sensitivity test of earlier measurements compared to new measurements (Novelty) in model 2
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Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini ,
Arief Helmi ,
Meydia Hassan ,
Yevis Marty Oesman
doi: http://dx.doi.org/10.21511/im.17(3).2021.02
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I Gede Riana ,
Gede Suparna ,
I Gusti Made Suwandana ,
Sebastian Kot ,
Ismi Rajiani
doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10
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Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia
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doi: http://dx.doi.org/10.21511/ppm.16(2).2018.01
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