Abstract
Effective leadership and creative performance are the predominant factors for the success of modern projects in the global construction industry. However, rigorous research has not explored the nexus between such factors and the leader-member exchange (LMX). To address this gap, this study explores the relationship between dimensions of paternalistic leadership and employee creativity achieved through LMX in the context of the construction industry. Based on social exchange theory (SET), six relevant hypotheses were proposed in this study. The data were collected through a structured questionnaire. An online survey form was used for data collection, through which 288 responses were collected from the construction industry employees working in Pakistan. The collected data were analyzed using Smart PLS in two stages, i.e., measurement model evaluation (reliability analysis, convergent and discriminant validity) and structural model evaluation (R-2, F-2, and path coefficient). The findings of the current study reveal a positive association of authoritarian, benevolent, and moral leadership with employee creativity. In addition, LMX significantly mediates the relationship between the two dimensions of paternalistic leadership (benevolent and moral leadership) and creativity, except for authoritarian leadership. Based on the results, this study contributes to the body of knowledge related to the appropriate leadership style in the local construction industry that can be extended to other developing countries with similar dynamics. It also helps the managers target and develops relevant skills to acquire positive outcomes from their team members.