In Hexie Management, leadership plays a critical role in the interaction model of environment, organization, strategy and leadership. The power of leadership is demonstrated by its significantly heavier impact on organizational performance, compared with those of other three elements. After previous literature was reviewed, three characteristics of leadership power,including organizational influence, internal locus of control and managerial skills, are proposed. The empirical study of Chinese firms shows that in Chinese cultural context, leadership is the most salient factor in influencing firm performance.