Authentic but Untrustworthy? Trust Moderates the Effects of Authentic leadership on Employees

Abstract

<p>This study challenges the assumption that authentic leadership can always create positive employee outcomes. It proposes that the effects of authentic leadership on employee work engagement and performance depend on whether employees have strong trust. If leaders are seen as authentic (e.g., acting according to their core values) but untrustworthy (e.g., being self-centered or having malicious intentions), employees are unlikely to feel engaged in their jobs and to perform well. This is especially true for those who have a strong proactive personality because these individuals strive to create or maintain favorable conditions in the external environment, and are thus especially likely to react strongly to cues of trust. Empirical data collected from 204 employees and their supervisors provided support for the study premise: authentic leadership enhanced employee work engagement and performance only when trust in the leader was high. In addition, the above two-way interaction effect was more likely to occur for those who had a strong (vs. weak) proactive personality, illustrating a three-way interaction effect of authentic leadership, trust, and proactive personality on work engagement and performance. Thus, this study contributes to the literature by highlighting the important moderating roles of employee trust in changing the effects of authentic leadership on employees.<br></p>