Authentic CEO as an Engine of Relations Climate: from a Human Capital Perspective

Abstract

Despite the growing number of studies focusing on leader authenticity, we have limited knowledge about its effect on organizational outcomes and boundary conditions. To better understand the role of the CEO’s authenticity in the organizational context, we used data from 139 enterprises in five provinces of China, including 139 vice presidents, 139 HR managers, and 1309 employees, to investigate whether the CEO’s authenticity can positively influence organizational attachment. During the process, we found employee relations climate as a mechanism to explain why authentic CEOs can help in retention of employees in the organization. Drawing on human capital theory, we found the human capital uniqueness moderated the relationship between CEO’s authenticity and employee relations climate, which further increased employee attachment to the organization. Specifically, CEO’s authenticity, in the organizations with unique human capitals, can exert positive influence to a greater extent. Limitations and implication...