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Modern organizations operate in complex environments, where leaders must continuously navigate opposing expectations. We investigated how and under which conditions, paradoxical leadership enhances team performance. Survey data from 70 team members at DZ BANK – New York Branch show that paradoxical leadership has neither direct nor indirect effects on team performance via team emotional dissonance or team satisfaction, and individual psychological safety does not moderate this relationship. However, team satisfaction strongly predicts team performance. Overall, the findings suggest that paradoxical leadership may primarily affect cognitive rather than emotional team processes. Theoretical and practical implications are discussed.
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Paradoxical leadership Team emotional dissonance Individual psychological safety Team performance Team satisfaction Social exchange theory
