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Article
Publication date: 30 April 2020

C. Muhammad Siddique, Hinna Fatima Siddique and Shama Urooj Siddique

This study has two primary objectives: (1) to shed light on the mechanism by which authoritarian leadership unfolds its impact on such critical aspects of subordinates' work lives…

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Abstract

Purpose

This study has two primary objectives: (1) to shed light on the mechanism by which authoritarian leadership unfolds its impact on such critical aspects of subordinates' work lives as job satisfaction and in-role performance and (2) to identify the moderating conditions which place limits on the impact of authoritarian leadership on work outcomes.

Design/methodology/approach

Data were collected on 552 supervisor-subordinate dyads from the United Arab Emirates. A series of research hypotheses were tested using a mixed-method statistical approach, including CFA and moderated hierarchical regression analysis.

Findings

As predicted, authoritarian leadership exerts negative impact on subordinates' job satisfaction and performance through poor quality LMX and weak employee organizational embeddedness. Both LMX and employee embeddedness mediated the negative relationship between authoritarian leadership and outcome measures while power distance moderated the relationship of authoritarian leadership with LMX and employee organizational embeddedness. Low power distance orientation was found to exacerbate the negative impact of authoritarian leadership on the quality of both LMX relationships and employee embeddedness.

Research limitations/implications

The study shares limitations of most studies cast in the survey research design.

Practical implications

The findings underscore the importance of work environment in nurturing high quality LMX relationships and employee organizational embeddedness to buffer the negative effect of authoritarian leadership on subordinates' job satisfaction and performance. In high power distance cultures where workplace inequality is largely rationalized, subordinates who perceive their leaders as authoritarian tend to show low job satisfaction and poor in-role performance. These findings illustrate the importance of management intervention in the early stage of recruitment and selection to attract managers receptive to egalitarian leadership approaches who can equip subordinates with appropriate resources to enhance their job satisfaction and performance outcomes.

Originality/value

The study offers valuable new insights into the mechanism by which authoritarian leadership influences work outcomes in a high-power distance culture. It represents first systematic effort in the Middle Eastern context to identify the conditions that mediate the linkage between authoritarian leadership and work outcomes. The study adds value to the literature by investigating the moderating role of power distance at the individual level of analysis. It detects significant differences in subordinates' perception of power inequality in the workplace in a culture viewed as a high-power distance culture and illustrates how such differences in turn shape the quality of LMX and employee organizational embeddedness.

Details

Journal of Strategy and Management, vol. 13 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 3 November 2023

Shama Urooj

This study aims to examine the effect of Financial Action Task Force (FATF) compliance on the degree of financial inclusion (FI) across 174 economies during the period from 2011…

Abstract

Purpose

This study aims to examine the effect of Financial Action Task Force (FATF) compliance on the degree of financial inclusion (FI) across 174 economies during the period from 2011 to 2021, including developed and developing countries.

Design/methodology/approach

This paper uses panel dynamic threshold regression to examine whether there is a threshold effect that exists in FATF compliance.

Findings

The findings show that FATF regulations enhance financial inclusiveness all over the world, but at the same time, FATF regulations regarding AML/CFT implications impose a high cost on financial institutions above the threshold of FATF compliance.

Research limitations/implications

This study’s findings indicate that nations should undertake deliberate struggle to reduce the prevalence of money laundering (ML) and terrorism financing by putting in place effective FATF regulatory frameworks to support FI.

Originality/value

This study’s findings indicate that nations should undertake deliberate struggle to reduce the prevalence of ML and terrorism financing by putting in place effective FATF regulatory frameworks to support FI. Regulators must, however, guarantee that the process is cost-effective and efficient.

Details

Journal of Money Laundering Control, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1368-5201

Keywords

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