Navigating Leadership Dynamics: Exploring the Impact of Multi-Dimensional Positive Leadership, Collaborative Work Environment and Negative Socioemotional Behaviour on Adaptive Performance

Abstract

Leaders and companies face significant obstacles in the dynamic and ever-evolving commercial world. Modern institutions, especially financial institutions, are actively pursuing the development of adaptable workforces as a means of competitive advantage and enhancing their resilience. This study aims to examine how multi-dimensional positive leadership (MDL) affects adaptive performance (AP) in collaborative work environment (CWE) in the banking sector in Pakistan and how negative socio-emotional behaviour moderates this mediated association. Direct linkages and mediations were analyzed using AMOS. Moderated mediations were assessed using Process Model 7. The study used 350 stratified managers from Pakistani Islamic and Conventional banks at three levels. MDL affects AP through the effects of the CWE. Positive leadership promotes collaboration, which boosts AP. Negative socio-emotional behaviour (NSEB) moderates these interactions, making them more complex. The findings reveal MDL shapes CWE and AP. So, to foster collaboration and enhance AP, organizations should promote MDL. This study uses mediation and moderated mediation analysis to explore how leadership influences performance. It emphasizes leadership's role in creating positive work environments and their effects on employee performance. This study examined how NESB of employee moderate the mediation path.