The Leadership Trap and Contextual Dynamics: A Mediated Moderation Model

Abstract

This study examines narcissistic leadership (NL) as an antecedent to workplace status and psychological well-being, with workaholism as a mediator. While also exploring the moderating role of competitive climate (CC) within these relationships. This research adopts a self-reported, cross-sectional field study approach, used to collect data from 165 professionals across a diverse array of sectors in Pakistan. Psychometrically validated scales were used to meticulously measure NL, competitive climate, workaholism, workplace status, and psychological well-being.Workaholism emerged as a significant mediator, amplifying the positive relationship between NLand workplace status, enhancing professional recognition but simultaneously escalating psychological distress among employees. While the moderating role of CC was not significant it highlighted potential direction for future research. Organizations shouldaddress NL's adverse effects by promoting sustainable leadership practices and balancing competitiveness with employee well-being. Leadership development programs and regulated competition can foster innovation and long-term success.Rooted in social exchange theory, this study highlights workaholism as a pivotal mediator, linking narcissistic leadership to workplace status and psychological well-being. It inspires us towards sustainable leadership while offering practical strategies to balance competitiveness with innovation and employee well-being across diverse organizational contexts.