Paradoxical effect of exploitative leadership on employee performance

Based on paradox theory, this study aims to investigate the paradoxical consequences of exploitative leadership on employee work outcomes. From the perspective of the ‘performing–learning’ lens, we hypothesize that exploitative leaders boost employee task performance but inhibit employee creative performance. In a three-wave time-lagged field study with 106 leaders and 249 subordinates, the results confirm our hypotheses. We also find the mediating effects of performance pressure and intrinsic motivation, as well as the moderating effect of traditional values. Facing exploitative leaders, employees with high traditionality show high task performance out of performance pressure, whereas those low in traditionality display worse creative performance because of poor intrinsic motivation. The findings contribute to the exploitative leadership literature, emphasizing the distinct influences of exploitative leadership on different aspects of performance, and have implications for practice.