The textile industry at one time, used to be one of the key industries in the economic development of Taiwan. Nevertheless, this labour- and time-intensive activity resulted in those employed in the industry not being able to devote adequate attention to both the family and business, that resulted in the enterprises being shipped out to other parts of labour-intensive Southeast Asia. This study aims to discuss the correlations between Chinese paternalistic leadership and organisational

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... t, leadership effectiveness in the textile industry, and understanding the effects of supervisor–subordinate guanxi . Using quantitative questionnaire surveys, the supervisors and employees in 398 textile-related businesses in Taiwan, including 137 textile factories, 98 dyeing and finishing factories and 153 clothing factories, are studied. After applying hierarchical regression analysis to analysing the data, it is found that moral and benevolent leadership do not enforce as much obedience and performance as authoritarian leadership does. Instead, their loyalties are based on the "heart" of the employees to enhance their commitment to the organisation, by which the supervisor–subordinate guanxi could effectively adjust strong-arm leadership and the attitude of the employees. Therefore, it is suggested that Chinese supervisors should adopt benevolent leadership, maintain favourable guanxi with the employees, and improve the work atmosphere.