Impact of Leadership Styles on Job Satisfaction: Moderating role of Power Distance

Abstract

Drawing on the House Path Goal theory, this study was conducted to assess the impact of leadership styles and power distance on job satisfaction with power distance used as moderator. MNCs in the field of information technology from two different countries were selected for this study i.e., one from comparatively high power distance Chinese culture, and the other one is of comparatively low power distance Pakistani culture. Data was collected from 200 employees working in 22 different IT companies operating in Islamabad. Hypotheses were tested through regression analysis; however, for the moderating effect of the power distance on the relationship between the leadership styles and the job satisfaction, interaction effects were used to test the moderating hypothesis. The results showed that participative and supportive leadership styles have positive impact with job satisfaction and power distance also moderates there relation, whereas, directive style had negative relationship with job satisfaction