Isomorphic manifestations of leadership toxicity in service-dominant paradigms: A neo-institutional analysis of organizational contagion effects, socio-cognitive mediating mechanisms, and customer-directed behavioral reciprocity across multi-level stakeho

This research examines the mechanisms through which toxic leadership behaviors cascade through organizations, influencing employee conduct and ultimately affecting customer service outcomes. Drawing on established theories including Social Learning Theory, Trickle-Down Effect, and Service Climate Theory, this paper synthesizes empirical evidence demonstrating that employees systematically mirror the negative behaviors modeled by organizational leaders. Through a comprehensive analysis of psychological processes such as behavioral contagion, moral disengagement, and displaced aggression, we delineate precise pathways through which toxic leadership transmits from management to frontline employees, creating systemic dysfunction that undermines service quality. The findings establish a causal relationship between leadership conduct, organizational culture, service climate, and customer experience metrics. Statistical correlations and case-based evidence indicate significant implications for stakeholder relationships, brand perception, and financial performance. We conclude with evidence-based recommendations for breaking cycles of toxicity through structural interventions, leadership development program and culture transformation initiatives that foster accountability and empathy at all organizational levels.