A tale of the likable change: the role of change in leadership behavior in improving employees’ willingness to take risks

Abstract

Purpose

A crisis period can reduce employees’ willingness to take risks, which are important predictors of organizational performance. Built upon the broaden-and-build theory of positive emotions, this study aims to examine the role of leadership’s behavioral change in promoting the willingness to take risks, as mediated by liking, at two different levels of task complexity.

Design/methodology/approach

An online survey has been answered by 281 employees of businesses with various scales, in different sectors in Indonesia. Indonesia was selected as it is among the countries with a high power distance culture. Hence, employees are expected to favor more directive leadership changes in the postpandemic context.

Findings

Drawing upon the broaden-and-build theory of positive emotions, this study found that leaders’ behavioral change toward a more directive approach promotes a willingness to take risks, as the employees like this change regardless of the task’s complexity level.

Research limitations/implications

In an organization where the employees’ willingness to take risks is critical, the leaders should not simply adopt empowering leadership, as suggested by previous studies. However, leaders need to ensure that any change in leadership behavior during the transition period, either toward a more directive or empowering style, is favorable for the employees, regardless of the level of complexity of the tasks.

Originality/value

This study contributes to the literature by demonstrating that Indonesian employees’ willingness to take risks increases only when the employees like the change in the style of leadership to a more directive one regardless of the level of task complexity. In addition, Indonesian employees have not perceived any substantial change in their leaders’ behavior after the pandemic, and they remain neutral about this type of leadership.