The Research On The Relationship Between Paternalistic-leadership And Employee Performance In Family Enterprises

With our country’s economic system reform, the private enterprises have developed rapidly,especially the private family business. However, the economic and social environment that the familybusiness faced has been completely different after three decades reform and opening up. As to how tocope with fierce competition, domestic and foreign scholars have also done a lot of research. Theleadership style of business leaders has become an important area of research scholars in recent years.The domestic scholars are particularly concerned with China’s paternalistic leadership which iswidespread in the family business in our country. However, paternalistic leadership in differentcompanies has different results even in the same external environment, the relevant policy, capitalinvestment and economic conditions. In some family businesses, paternalistic leadership on employeeperformance plays an irreplaceable role in making continuous improvement of employee performance;while in other family businesses, it’s useless and even reduces employee performance. In order to dobetter further research on paternalistic leadership, this paper has made a more meticulous research onpaternalistic leadership style of the family business in Changsha, Zhuzhou and Xiangtan. This studyfocuses on the three aspects: first, the impact of paternalistic leadership style on employee performance;second, the impact of paternalistic leadership style on employee loyalty; third, the intermediary rolethat employee loyalty played between employee performance and paternalistic leadership.In order to analyze the relationship between the family business paternalistic leadership andemployee performance more detailed, this paper has added the intermediary variable of employeeloyalty when study on the effect of family businesses paternalistic leadership on employee performance.With rising rate of staff turnover, the employee loyalty has been increasingly concerned in recent years.The entrepreneurs leadership plays an irreplaceable role on the impact of employee loyalty, while theemployee loyalty has a positive effect on promoting employee’s performance. As a result, it ismeaningful both in theoretical and practical to introduce the mediating variable of employee loyaltywhen study the relationship between paternalistic leadership and employee performance. The maininnovations of this paper are as follows: first, the domestic scholars mostly concentrated on thetheoretical research and most of the studies focused on the direct link between paternalistic leadershipand employee performance with insufficient research on mediating variable between paternalisticleadership and employee performance. second, through the empirical model of “paternlistic leadership-employee loyalty-employee performance”,this paper has studied the relationship between paternalisticleadership and corporate performance, and has made a assumption, data collection and empiricalanalysis.Conclusions of this study are:(1) employee loyalty has a positive impact on employee performance;(2) paternalistic leadership has a similar impact on employee loyalty, kindness leadership, moralleadership as well as the impact of authoritarian leadership loyalty;(3) a benevolent leadership canenhance employee’s performance better;(4) both benevolent leadership, moral leadership andauthoritarian leadership affect employee performance indirectly through employee loyalty.