Impact of Leadership Styles on Organizational Agility Within the Technology Industry: Case of the UK

Abstract Purpose This study proposes a conceptual model to study organizational agility by integrating Dynamic Capabilities and the Competing Values Framework to investigate the relationship between leadership styles and dynamic capabilities and organizational culture within the United Kingdom (UK) smart technologies, artificial intelligence (AI), robotics, and algorithms (STARA) technology firms. Design/Methodology/Approach Quantitative research was conducted using a cross-sectional survey design, and participants were drawn from different levels of technology firms in the UK. Stratified random sampling was used to obtain more generalised results, and 410 respondents completed the survey. The data were analysed through partial least squares structural equation modelling (PLS-SEM) using SmartPLS software. Findings Transactional leadership had the most positive relationship with dynamic capabilities, transactional leadership had the most positive relationship with organizational culture, and dynamic capabilities had the most positive relationship with organizational agility. Practical Implications This study indicates that technology firms need to encourage transformational, transactional, and adaptive leadership styles to increase organizational flexibility. Managers should concentrate on building a strong organizational culture and dynamic capabilities that enable organisations to respond quickly to changes in technology and market trends. Originality/Value This study contributes to the literature by applying dynamic capabilities and competing values frameworks to analyse the relationships among leadership styles, organizational culture, dynamic capabilities, and organizational agility in STARA. This study is beneficial for scholars and managers aiming to improve agility in technology-intensive contexts.