HOW TOXIC LEADERSHIP FUELS EMPLOYEE SILENCE: A MEDIATED-MODERATED MODEL OF PSYCHOLOGICAL SAFETY AND PERCEIVED ORGANIZATIONAL SUPPORT

Abstract

This study investigates the impact of toxic leadership (TL) on employee silence (ES) in Pakistan’s public sector, with a specific focus on the Federal Board of Revenue (FBR). Drawing on Social Exchange Theory (SET) and Leader-Member Exchange (LMX) Theory, the study examines the mediating role of psychological safety (PS) and the moderating role of perceived organizational support (POS) in this relationship. Using a quantitative, cross-sectional design, data were collected from 320 employees serving in Grades 16 to 19 across various FBR offices. Structural equation modeling and PROCESS macro analysis revealed that toxic leadership significantly increases ES, both directly and indirectly through reduced PS. Moreover, POS was found to buffer the adverse effects of TL, weakening its influence on silence behavior. These findings reinforce the notion that toxic leadership undermines interpersonal trust and open communication, but organizational-level support mechanisms can partially mitigate this damage. The study makes several contributions to the organizational behavior literature by extending silence and leadership research to a bureaucratic, high power-distance public sector setting. The results have practical implications for leadership development, organizational support systems, and employee engagement strategies, particularly within hierarchical institutions like the FBR. The study also highlights the need for reforms in leadership practices and voice mechanisms to foster PS and transparency. Limitations related to research design and data sources are acknowledged, with suggestions for future research to employ longitudinal methods, cross-sector comparisons, and multi-source data to further validate and extend these findings.