How does servant leadership work in times of uncertainty? Examining servant leadership and perceived job insecurity during significant organizational change

Abstract

Purpose – While the benefits of servant leadership are well established, its effectiveness during major organizational change remains unclear. Grounded in conservation of resources theory, this study examines how servant leadership functions in such transitions, particularly when employees experience job insecurity. Design/methodology/approach – Survey data (two waves) and administrative sickness absence records were collected from 215 employees during the anticipation phase of a merger. Findings – Servant leadership predicts reduced sickness absence and turnover intentions through the mediating effect of emotional exhaustion. However, these positive effects weaken significantly when employees experience job insecurity. Practical implications – The study provides insights for organizations managing mergers. Managing employee job un-certainty seems important for tailoring leadership, including the efficacy of servant leadership. Originality/value – Our results, while surprising, expand our understanding of the boundary conditions of servant leadership and contribute to a realistic discussion of its effectiveness during times of uncertainty and change.