The effect of leadership type on follower performance in Asian technology industries: the moderating effects of narcissism

Abstract

ABSTRACT Many researchers are interested in the relationship between leaders and their followers, whether in the technology or nontechnology sector. However, the moderating factors of the relationship between leadership types and followers’ performance have been underexplored. This study investigates the moderating role of a leader’s narcissism in the relationship between leadership types (transformational and transactional) and follower performance in technology and nontechnology industries. We analyze the results of a survey of 46 chief executive officers and 205 followers at 46 large companies in Korea, of which 30 are in the technology sector and 16 are in nontechnology industries. The results show that a leader’s narcissism mitigates the positive relationship between transformational leadership and followers’ performance. Moreover, a leader’s narcissism strengthens the negative relationship between transactional leadership and followers’ performance. When industry type is considered, this effect remains evident only in the technology sector. These findings suggest that the moderating role of narcissism in the relationship between leadership and follower outcomes can be industry-specific. The results contribute to theoretical discussions about the relationship between leadership types and followers’ performance and its moderating factors.