This research aims to understand the relationship of phronetic leadership with absorptive capacity and organisational resilience. Particularly, this study examines how absorptive capacity mediates the relationship between phronetic leadership and organisational resilience.
This quantitative research collects data from 402 respondents in the pharmaceutical, banking and IT industries using a seven-point Likert scale. Structural equation modelling is used to analyse the structural relationship among the constructs.
This research found that phronetic leadership is related to organisational resilience. In addition, this study also shows that absorptive capacity mediates the relationship between phronetic leadership and organisational resilience.
The qualities of a phronetic leader help organisations to identify the needs of the key stakeholders. Furthermore, they assist organisations to assess the market needs and subsequently acquire and create knowledge, which is critical to organisational resilience. This resilience allows an organisation to respond and adjust to both incremental changes and sudden disruptions.
This research contributes to the extant academic discussions on phronetic leadership and organisational resilience. The concept of phronetic leadership has received scant attention in management and leadership literature, and this research is among the first to empirically examine its relationship with absorptive capacity and organisational resilience.
