Development of Authentic Leadership and Cultural Intelligence Sustainability in Australian SMEs: A Mixed Methods Study
DOI:
https://doi.org/10.70301/JOUR/SBS-JABR/2026/14/1/5Keywords:
authentic leadership, cultural intelligence, SMEs, Australia, competitive advantangeAbstract
This study investigates the relationship between authentic leadership and the development and sustainability of cultural intelligence in Australian small and medium-sized enterprises (SMEs). Using a mixed methods approach, the research addresses four key questions: (1) How do the four components of authentic leadership contribute to cultural intelligence development? (2) What mechanisms sustain cultural intelligence capabilities? (3) How does the relationship between authentic leadership and cultural intelligence influence competitive advantage? (4) To what extent can cultural intelligence be sustained independently of the founder/CEO? The findings reveal that authentic leadership, particularly through self-awareness and relational transparency, creates foundational conditions for the development of cultural intelligence in Australian SMEs. Self-awareness enhances metacognitive cultural intelligence through cultural self-reflection; relational transparency fosters motivational cultural intelligence through psychological safety; balanced processing supports cognitive cultural intelligence through diverse perspective-taking; and internalized moral perspective enhances behavioral cultural intelligence through values-based adaptation. Sustainable cultural intelligence is supported by institutionalized practices, distributed cultural leadership, and adaptive learning systems. The combination of authentic leadership and cultural intelligence enhances competitive advantage by improving market understanding, strengthening international relationships, facilitating effective knowledge integration, and promoting organizational resilience. These findings contribute to both theory and practice, extending our understanding of how authentic leadership shapes cultural capabilities and providing practical insights for Australian SME leaders seeking to develop and leverage cultural intelligence for competitive advantage in an increasingly globalized business environment.
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