Abstract
Drawing upon the conservation of resources (COR) theory and resource-based view (RBV), we investigate the negative effects of despotic leadership on individual and organizational dynamics. Specifically, we examine how a despotic leader impacts dynamic capabilities of an organization through a serial mediation model. We introduce knowledge hiding and organizational learning as mediators in the relationship between despotic leadership and dynamic capabilities. Furthermore, we propose the boundary condition of coworker support as a coping mechanism between despotic leadership and knowledge hiding. Two waves time lagged data was collected from 253 respondents working in the corporate sector organizations in Lahore through a survey instrument. The results demonstrate that despotic leadership has a direct negative relationship with dynamic capabilities and an indirect negative relationship with dynamic capabilities through knowledge hiding and organizational learning. Moreover, higher coworker support weakened the positive relationship between despotic leadership and knowledge hiding. This study has important implications for organizations and managers to enhance organizational outcomes.