Migration movements transform business life because they have more social aspects than geographic or numerical interactions. This paper reviews empirical research better to understand the effect of leadership in the process of xenophobia in the work environment from social identity theory perspective. Leadership as a social contextual factor is critical for understanding in determining individuals’ internalization of particular cultural identities regarding to social identity theory. From that point of view, paternalistic leadership can be an ideological motive to affect the social order by internalization of inferiority among members by family-like relations and involving personal lives and expecting interpersonal favors. The sample of the study was chosen from Gaziantep, with a total number of 634 employees and 78 firms, where the immigrant population is dense. Results revealed that paternalistic leadership and xenophobia dimensions were relatively different in that specific sector. In a nutshell, paternalistic leadership does not significantly affect the personal and political hostility factor of xenophobia as social group theory predicted. However, it affects the cultural and identity dimensions of xenophobia self-idealization. Implications for theory and practice alongside limitations are discussed.