Assessing the mediating effect of leadership capabilities on the relationship between organisational resilience and organisational performance

Abstract

PurposeThe COVID-19 pandemic had brought drastic economic, social and technological changes in society. The drastic changes and uncertainty in the environment had forced various industries to evolve effectively to cope with the unexpected change and subsequently bounce back to regain business success. For instance, private higher learning institutions face steep challenges due to the shortfall of organisational capabilities. The study aims to examine the role of leadership capabilities and organisational resilience in regaining organisational success among higher private learning institutions in Malaysia.Design/methodology/approachAccording to the dynamic capabilities theory, organisational resilience and leadership capabilities are among the highest order of indicators for organisational success. Subsequently, this study examines the mediating role of leadership capabilities on the relationship between organisational resilience on organisational performance. The dynamic capabilities-based framework was tested using the structural equation modelling technique with the use of partial least squares approach. Data were analysed using 120 responses.FindingsBased on the 120-questionnaire survey received, this study found that organisational resilience and leadership capabilities contribute significantly to the performance of private higher learning institutions. In addition, this study found strong support for the mediating role of leadership capabilities to promote performance. The findings have both theoretical and practical implications for post-disaster organisation resilience development.Research limitations/implicationsThe work focuses on values that would have an impact towards organisational performance, which is an important factor of survival in an unpredictable environment. The findings are limited by the indicated constraints used in this study.Practical implicationsOrganisational survival techniques would provide managers, owners and leaders effective techniques that can be implemented to extend and improve the organisation's life cycle. The focus on organisational resilience and leadership factors would greatly improve the overall sustainability and performance of the organisation.Originality/valueThe study contributed by showing the importance, use and interaction needed from organisational resilience and leadership capabilities for them to survive when there is a sudden change in the environment. The timing and uniqueness of the data during the pandemic illustrates how organisations can survive with high levels of weightage towards resilience and leadership. This research is different from other studies as it had examined the impact of values and resilience and leadership in organisations.

Comeback or evolution? Examining organizational resilience literature in pre and during COVID-19

“…Another factor discussed in different facets is the role of leadership on organizational resilience. Zahari et al (2021) show that leadership appears to have a mediating effect on organizational resilience, while postulate an influence of agile leadership on organizational resilience. Madi Odeh et al (2021) could demonstrate a clearer positive influence of transformational and transactional leadership styles on adaptive capacity and on organizational resilience.…”

“…Another factor discussed in different facets is the role of leadership on organizational resilience. Zahari et al. (2021) show that leadership appears to have a mediating effect on organizational resilience, while Aldianto et al.…”

The discourse of organizational resilience before and after the global pandemic

“…By contrast, the organizational dimension seems to impact the ability to adapt and respond to adversity. One study further discovered that organizational resilience and leadership skills play a crucial role in how well private higher education institutions succeed, even in times of crisis like the COVID-19 outbreak ( Zahari et al , 2022 ). Based on our review of this theme, it can be implied that COVID-19 has even attracted more researchers to study organizational resilience, thus contributing to this literature using profit- and non-profit-oriented entities.…”

Exploring the Intellectual Structure of Research in Organizational Resilience through a Bibliometric Approach

“…The essential capabilities to achieve OR are routinely addressed. The capabilities should be targeted to promote OR include competence, skills, and knowledge of uncertainty regarding organizational processes and systems [111][112][113].…”