Empowering Leadership and Employees' Extra-Role Behaviours in Multinational Corporations in Nigeria

Abstract

This thesis, grounded in Self-Determination Theory (SDT) and Social Exchange Theory (SET), examines the influence of empowering leadership on employee voice and knowledge-sharing behaviours (extra-role behaviours) within multinational corporations (MNCs) in Nigeria. While Nigeria is traditionally classified as a collectivist society, the study provides insights into how global management strategies interact with local cultural values, revealing the complexities of leadership adaptation in a globalized work environment. Using a longitudinal study approach, data was collected from 213 employees across 22 teams and 11 companies spanning 9 economic sectors. The study employed a two-study design to assess the impact of leadership at both the team and individual levels. Study One conducted a single-level analysis, examining the mediating roles of organisational justice and psychological empowerment. findings suggests that while psychological empowerment is important for enhancing employee motivation and performance, it may not be the primary mechanism through which empowering leadership influences knowledge sharing and voice behaviours in MNCs in Nigeria. Instead, organisational justice may play a more critical role in this context. Further findings showed that individual-level cultural orientations, particularly individualism, moderate the impact of empowering leadership, with individualistic employees perceiving empowering leadership as fairer and engaging more readily in extra-role behaviours. These findings support the need for a hybrid leadership style that balances empowerment with directive leadership, particularly in high-power distance cultures where structure is valued. Importantly, this does not contradict Nigeria’s collectivist orientation but reflects cultural fluidity within MNCs influenced by Western HRM practices. Study Two expanded on these findings using a multilevel analysis, revealing that team-level LMX and organisational justice mediate the effects of leadership on employee behaviours. Furthermore, the study demonstrated that cultural factors, specifically individualism-collectivism and LMX differentiation (LMXD), moderate the effectiveness of empowering leadership, reinforcing the importance of culturally adaptive and fair leadership approaches. The study contributes to leadership research by offering new perspectives on how empowering leadership operates in non-Western MNC contexts. The thesis concludes by highlighting future research directions, including extended longitudinal studies, mixed-method approaches, and cross-cultural comparative research, to further refine leadership theories in diverse organisational settings.