The aim of this research is to investigate the effect of organizational culture on paternalistic leadership in Chinese SMEs (Small and Medium-sized Enterprises). Based on pertinent researches and the four types of organizational culture identified by Competing Values Framework (CVF), this research formulated hypotheses concerning the impact of group, developmental, hierarchical and rational culture on benevolent, moral and authoritarian leadership. Data stem from 515 cases in 23 Chinese SMEs. The results show that four culture types positively associated with benevolent leadership. In addition, hierarchical culture positively impacts on moral leadership, but it is not significantly related to authoritarian leadership. The impact of group, developmental and rational culture on moral and authoritarian leadership is not statistically significant in Chinese SMEs. The findings of this paper extend the research on antecedents of paternalistic leadership as well as provide theoretical guidance for entrepreneurs to establish proper organizational culture and adopt effective leadership.
Key Words: Organizational culture; paternalistic leadership; SMEs
JEL Codes: M14, M16 and M54
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