The modern business environment is complex, dynamic, and has unpredictable moments. This is creating adaptive challenges for leaders worldwide and enhancing the need for organisational adaptability, complex responses and leadership with adaptive competencies.
Leadership remains at the centre of enabling renewal, reconfiguration and adapting to changing market conditions. Operational capabilities facilitate efficiency and are geared for stable environment. Faced with unpredictable environments, dynamic capabilities offer a solution for leaders and organisations. As a result, there is a need to expand knowledge on understanding the mediating role of environmental dynamism on the relationship complexity leadership has with dynamic capabilities. This study examined the mediating effect environmental dynamism had in the relationship complexity leadership has with dynamic capabilities.
This study aims to uncover some untapped potential complexity leadership offers to dynamic capabilities. Findings from this study could contribute to leadership development in organisations seeking to adapt and increase competitiveness. Leadership in firms will benefit from knowing and using complexity leadership traits to influence organisational outcomes.
Using SEM, 953 responses were collected using an electronic survey and statistically analysed to test the hypothesised mediation. The results indicated environmental dynamisms partially mediation the relationship complexity leadership has with dynamic capabilities. Understanding the role of dynamic capabilities and complexity leadership in achieving competitive advantage will benefit both academia and practice.