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

Afzal Izzaz Zahari (Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Malaysia)
Norhayati Mohamed (Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Malaysia)
Jamaliah Said (Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Malaysia)
Fauziah Yusof (Kolej Universiti Poly-Tech MARA Kuala Lumpur, Kuala Lumpur, Malaysia)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 15 November 2021

Issue publication date: 12 January 2022

1924

Abstract

Purpose

The 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/approach

According 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.

Findings

Based 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/implications

The 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 implications

Organisational 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/value

The 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.

Keywords

Acknowledgements

The authors are indebted to the Malaysian Accounting Research Institute (ARI, UiTM) and Kolej Universiti Poly-Tech Mara for providing the financial support needed for the project. The authors appreciate the reviews and comments made by academicians on earlier drafts of the paper. Special thanks to the participating universities, college universities and colleges that had been involved in the project.

Citation

Zahari, A.I., Mohamed, N., Said, J. and Yusof, F. (2022), "Assessing the mediating effect of leadership capabilities on the relationship between organisational resilience and organisational performance", International Journal of Social Economics, Vol. 49 No. 2, pp. 280-295. https://doi.org/10.1108/IJSE-06-2021-0358

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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