Why Does Trust Mediate the Effects of Ethical and Authentic Leadership in Korean Firms?

Abstract

Walumbwa et al. (2008) conducted research into the positive and direct effects of ethical and authentic leadership on organizational outcomes using a student sample in the United States. However, the study hypothesizes that in a non-American context within Korean firms, no direct relationship exists between the two leadership styles and organizational outcomes. This is due to the unique culture of Korea where trust is based on private networks such as regional, school, and blood ties. The results show that both leadership styles are only effective when they are mediated by followers’ trust. The results imply that the achievement of leadership requires more than the authenticity of the leader, rendering support for Eagly’s (2005) suggestion that authenticity is a relational concept.