The mediating effect of charismatic leadership communication and organizational credibility in the relationship between crisis responsibility and perceived organizational reputation

• Main Author: Jamilah, Jamal
• Format: Thesis
• Language: English; English
• Published: 2016
• Subjects: HD61 Risk Management
• Online Access: http://etd.uum.edu.my/6228/
• Institution: Universiti Utara Malaysia

Based on the situational crisis communication theory (SCCT), this study focuses on the preventable crisis type and its impact on organizational reputation. Even though the SCCT has been widely used in crisis communication research, the theory still has its own limitations in explaining factors that could potentially affect the reputation of an organization. This study develops a mediation model by integrating crisis responsibility, charismatic leadership communication and organizational credibility in the SCCT theoretical framework. The main objective of this study is to determine the mediating effect of charismatic leadership communication and organizational credibility in the relationship between crisis responsibility and perceived organizational reputation. Based on the mediation model, nine hypotheses are tested using Structural Equation Modeling (SEM) with the data obtained from a sample of 368 employees of two selected public organizations in Malaysia. Research findings confirm positive and significant relationships between all constructs in this study. The tested mediation model also indicates that the dynamic mechanisms of charismatic leadership communication and organizational credibility partially mediated the relationship between crisis responsibility and perceived organizational reputation during a crisis. These findings validate the proposed model in this study. Empirically, the mediated model established can serve as an instructive guide for both public organizations and corporate leaders in managing crises and reputations. This study contributes to further establishing the SCCT and posits key attributes in the organizational reputation processes. A practical implication of the findings suggests that a leader should engage in charismatic leadership communication and strengthen organizational credibility to mitigate the impact of a crisis on organizational reputation. As a conclusion, the findings have placed the dynamic mechanism of the research constructs at the forefront of managing organizational reputation.