Affiliative leadership at the top: female-led family firms and the retention of non-family talent

Abstract

Purpose Retaining talented non-family employees (NFEs) is a persistent challenge in family firms. While governance and succession have received considerable attention, the influence of leadership style and CEO gender on employee retention remains largely underexplored. This study aims to examine how affiliative leadership (AL) enhances psychological safety (PS), thereby reducing voluntary turnover intentions (VTI) among NFEs. It also investigates whether these effects are more pronounced in female-led family firms, compared to those that are led by male-led ones. Design/methodology/approach Drawing on conservation of resources (COR) theory, the authors develop a conceptual framework that positions PS as a mediating mechanism through which AL influences VTI, while the gender of the firm’s leader serves as a moderating variable. To test the hypothesized relationships, cross-sectional survey data were collected from 266 NFEs working in privately held family firms across Oman. The data were analyzed using structural equation modeling (SEM) to assess both direct and conditional effects. Findings The analysis demonstrates that AL exerts a positive influence on PS and significantly reduces VTI. Importantly, PS is found to serve as a critical mediating mechanism in this relationship, underscoring its role in translating AL behaviors into reduced voluntary turnover intentions. Moreover, the findings reveal that the effects of AL on both PS and VTI are substantially stronger in family firms led by women, suggesting that the relational orientation of female leaders amplifies the benefits of affiliative leadership in fostering employee security and retention. Originality/value This study offers a novel contribution by integrating relation-focused leadership style, gender dynamics and employee retention within the unique context of family firms. Drawing on COR theory, it is among the first to empirically demonstrate that affiliative leadership enhances psychological safety, which in turn reduces VTI among NFEs. It further identifies leader gender as a significant moderating factor, revealing that the positive effects of affiliative leadership are more pronounced in female-led family firms. These findings deepen our understanding of how empathetic and relational leadership can support talent retention in traditionally patriarchal family firms, where inclusive practices have often been secondary to familial priorities.