Does organizational structure render leadership unnecessary? Configurations of formalization and centralization as a substitute and neutralizer of servant leadership

This research draws on the substitutes for leadership theory and the organizational configuration perspective to examine if formalization and centralization moderate the effect of servant leadership on job satisfaction. The findings from a field study and an experimental study suggest that while formalization and centralization did not operate as a substitute or neutralizer independently, however as per the configuration perspective, they interact to moderate the relationship between servant leadership and job satisfaction in different configurations. The results indicate that servant leadership behaviors have more salient effects on followers’ satisfaction when they operate in organizations with lower levels of organizational structure. In addition, under specific structural configurations, formalization can act as a substitute for servant leadership, and centralization can act as a neutralizer on servant leadership. This research contributes to the literatures of servant leadership and the substitutes for leadership theory by enhancing our understanding of the impact of structural configurations.