Can authentic leadership benefit employees in all situations? The interaction effect of authentic leadership and team conflict on employee creativity

Purpose There has long been a belief that authentic leadership positively impacts employee outcomes, consistently proven to be effective. However, is this conclusion universally applicable in any situation? To answer this question, we investigated the interaction effect between authentic leadership and two types of team conflict (task conflict and relationship conflict) on employee creativity as well as the mediating role of employee trust in the leader (affective-based and cognitive-based), looking to open up a new milestone for authentic leadership. Design/methodology/approach This study involved 589 employees across 75 teams, with data collected using a dual-wave, multi-source approach. Findings The results demonstrated that authentic leadership can enhance employee creativity, but this effect is not absolute. Specifically, the interaction between authentic leadership and task conflict negatively affected employee creativity, with this relationship mediated by cognitive-based trust. Conversely, there was no significant impact of authentic leadership on relationship conflict affecting creativity, nor was this relationship mediated by affective-based trust. Originality/value This study challenges the long-held belief that authentic leadership always positively impacts employee creativity. Moreover, it provides new perspectives on the different situations in which authentic leadership has varying impacts on employee creativity. Additionally, the study contributes to a further systematic and comprehensive understanding of the impact of authentic leadership.