Resilience in Adversity: The Moderating Role of Organizational Culture on Leadership and Performance in Sovereign Wealth Funds

Sovereign Wealth Funds (SWFs) function in a complex environment characterized by extensive global scrutiny and geopolitical volatility, managing large amounts of national assets. Traditional research has largely focused on governance and investment strategies, leaving the human capital aspect, particularly the influence of leadership and organizational culture on performance, relatively unexplored. This study examines the Libyan Investment Authority (LIA) to understand how organizational culture affects the relationship between leadership traits, transformational behaviors, and organizational performance. Using data from 278 employees and a Partial Least Squares Structural Equation Modeling (PLS-SEM) framework, the research reveals that both leadership traits and transformational leadership directly enhance performance. However, it highlights that organizational culture acts as a critical "boundary condition"; a positive and collaborative culture amplifies the benefits of effective leadership, whereas a lack of such a culture hinders leadership effectiveness. The study introduces a "Resilience in Adversity" model, positing that in volatile contexts, an empowering organizational culture is essential for leaders to convert their potential into successful performance results, thereby expanding the SWF literature with a focus on human capital dynamics amidst institutional challenges.