The relationship between complexity leadership and dynamic capabilities

Abstract

All organisations across all industries experience change with the rise of the fourth industrial revolution. Dynamic capabilities are pivotal for an organisation to sustain its competitive advantage when environments change. Leadership needs to establish these dynamic capabilities, and leadership styles such as complexity leadership could provide the needed behaviours. The aim of this study was to establish and explore the relationship between complexity leadership and an organisationÕs dynamic capabilities. A better understanding of this relationship will assist organisations to sustain competitive advantage when environments change. A mono-method quantitative methodology was adopted to test the hypothesised relationships, as deducted from literature. Structured questionnaires were used to measure participantsÕ perceptions of complexity leadership behaviours and dynamic capabilities observed within their current organisations. Cross-sectional data were gathered from 115 employees, employed at various organisational levels in a cross-section of organisations in South Africa. The validity and reliability of the scales used in the questionnaire were successfully tested, and linear regression was used to test the relationship between complexity leadership and an organisationÕs dynamic capabilities. The results indicated a significant, positive, linear relationship between complexity leadership and an organisationÕs dynamic capabilities. The findings of this study provide insights to business and academics, emphasising the important role of complexity leadership in support of an organisationÕs dynamic capabilities, to develop and sustain competitive advantage in a changing environment introduced by the rise of the fourth industrial revolution.