Dynamic organisational capabilities: The role of authentic leadership and trust

Abstract

Orientation: The world of work has become unstable and precarious, thereby accentuating the need to maintain dynamic capabilities such as sensing, seizing and reconfiguring to adapt and thrive. Associated challenges potentially threaten the well-functioning of organisations and their employees. This problem might be alleviated by encouraging the leaders to be more authentic, resulting in various positive outcomes.Research purpose: The aim of the study was to assess the associations authentic leadership (AL) have with trust in organisation (TO), trust in colleagues (TC) and dynamic organisational capabilities (DC) such as sensing, seizing and reconfiguring as these manifest within a context of extreme volatility.Motivation for the study: Having a high level of DC might contribute to the feasibility of successful organisations in the struggling manufacturing industry, as it could enhance their sustainability and competitiveness.Research approach/design and method: A quantitative cross-sectional survey design was used. The Authentic Leadership Inventory, Workplace Trust Survey and Dynamic Capabilities questionnaire were administered.Main findings: AL positively associates with TO, TC and DC. The direct effect of AL on DC was further enhanced through both TO and TC as underlying mechanisms.Practical/managerial implications: Manufacturing industry organisations should promote an AL style as it will contribute to higher levels of TO, TC and eventually improved DC.Contribution/value-add: Our study highlights the association of AL with DC as an important outcome. Insight into the underlying mechanisms by which AL achieves effect is advanced through trust, simultaneously targeting interpersonal as well as organisational levels as foci.

The Trend of Authentic Leadership Skills in Nursing Education: The Key Role of Perfectionism and Self-Efficacy

“…In turn, a high level of AL skills allows people to create a positive work environment. This is confirmed by research [ 17 , 18 , 39 , 40 , 41 ]. Similar observations were also made in relation to nurses [ 14 , 15 , 42 , 43 , 44 ], as well as for nurses starting work [ 45 ].…”

Authentic leadership and flourishing: Do trust in the organization and organizational support matter during times of uncertainty?

“…The positive relationship between organizational support and trust strengthens the conclusion reached by Zeng et al (2020) that support as a resource generates positive emotions – in this study, trust – among employees. Additionally, Kleynhans et al (2021a) mention that leaders who are open and allow employees to get to know them instill trust in the organization.…”

“…A study conducted by Chen and Sriphon (2022) indicated that authentic leadership was linked positively to both social exchange relationships and trust. Furthermore, an authentic leadership style can promote a healthy and supportive work setting characterized by sound relationships and trust among team members, follower trust in their leaders ( Asad et al, 2021 ), and in their organization ( Miniotaite and Buciuniene, 2013 ; Alkaabi, 2018 ; Kleynhans et al, 2021a ). It is thus plausible to argue that increased levels of trust can be ascribed to the example set by authentic leaders who are characterized by high moral standards, honesty, transparency, and integrity.…”

“…According to Kleynhans et al (2021a) , there is a positive relationship between trust in the organization and authentic leadership, while Paolini et al (2020) found an association between trust and well-being during times of uncertainty. Because authentic leaders can be described as those “who are deeply aware of how they think and behave and are perceived by others as being aware of their own and others values/moral perspectives, knowledge and strengths; aware of the context in which they operate; and who are confident, hopeful, optimistic, resilient, and of high moral character” ( Avolio et al, 2004 , p. 4), it can be argued that authentic leadership associates with trust and the well-being of employees.…”

Knowledge‐based dynamic capability: Concept mapping, usage, and taxonomy

“…It is a futile exercise if the accumulated knowledge is not rightly embedded in the organizational capabilities. Thus, it is imperative to strengthen the firm's ability to exploit/seize opportunities for the pursuit of superior performance (Kleynhans et al, 2021; Morgan et al, 2012; Nuruzzaman et al, 2019; Sheng, 2017).…”