Authentic Leadership and Its Impact on Organizational Intelligence: Model for Measuring Direct and Indirect Impact with Mediating Role of Organizational Culture

Abstract

In the contemporary age organizations are facing rapidly changing working dynamics, cut throat competition, unpredictable macro-environmental changes and dramatic cultural and social environments. Under these circumstances the application of classical rules of management can not only result into a competitive disadvantage but may also likely become a threat to put organizations at the verge of collapse. Such phenomenon forces organizations to adopt new organizational practices and approaches such as Organizational Intelligence (OI). The volatile nature of business plateau has given rise to investigation of comprehensive models of Organizational Intelligence (OI). This research paper aims to analyze the direct and indirect effect of authentic leadership on organizational intelligence with the mediating role of Organizational Culture. Karl Albrecht (2003), Walumbwa et.all (2009) and Daniel Denison (1997) valid scales are used to measure Organizational Intelligence, Authentic Leadership and Organizational Culture respectively. The data has been collected from 106 employees working in the telecom sector of Pakistan. Smart PLS is used for factor analysis, path model analysis and multivariate analysis between the variables. The findings of the research show that Authentic Leadership has a direct, positive but weak influence on Organizational Intelligence however, it has an indirect, positive and strong influence on Organizational Intelligence. The findings of the study conclude that practicing Authentic Leadership occasionally weakly influence an organization to achieve Organizational Intelligence. On the other hand, adopting Authentic Leadership style harness an organizational culture of pellucidity which activates the organizations to become intelligent organizations.