Empowering leadership in crisis: a natural experiment

Abstract

Existing research suggests that empowering leadership enhances employee well-being, but context-specific empirical studies in the public sector remain scarce. We investigated whether this positive impact persists during a public health crisis. To test this, we conducted a natural experiment, utilizing a longitudinal survey of healthcare employees and administrative data on geographical variance in hospitalization rates during a public health crisis. Our findings show that empowering leadership is less effective during a crisis and can even result in adverse effects. The results challenge the notion that empowering leadership universally benefits employee well-being and highlight its potential dark side.