Leading with Ego: How Narcissistic Leadership Fuels Counterproductive Behaviors through Organizational Cynicism in Public Sector Banks of Pakistan

Abstract

“Leadership is not about being in charge. It is about taking care of those in your charge.” —Simon Sinek. In this rapidly evolving business world, staying ahead is not only a matter of strategies it needs augmentation of leadership that ensures embracing the change rather than to resist. In developing countries, public sector organizations are facing chronic problem of true leadership. This study aimed to highlight the indispensable role of leadership by examining how narcissistic leadership nurture organizational cynicism and its three dimensions —cognitive, emotional, and behavioral—and its impact on counterproductive work behaviors within the banking sector. Beneath the umbrella of Social Exchange Theory and Leader—Member Exchange Theory, data of 419 employees from the banking industry in Pakistan were collected and analyzed using Partial Least Square- Structure Equation Modeling (PLS-SEM). This study employed standardized scales to measure various constructs of study which were assessed through measurement model. Structural model findings reflected that that narcissistic leadership strongly predicts all dimensions of cynicism, but only behavioral cynicism dimension mediates the relationship between narcissistic leadership and counterproductive behavior. The study accentuates how narcissistic leadership erodes sentiments and escalates deviances which leads to failure of organizations. These findings reinforce the notion that even if one dimension of cynicism is driving negative behaviors, this type of leadership can ruin the employee well-being and organizational health.  This study has also highlighted various theoretical, practical and social implications which can set the guidelines for practitioners.  

Keywords: Narcissistic Leadership, Social Exchange Theory, Pakistani Banking Sector, Organizational Cynicism, Counterproductive Behavior.