Cognitive capabilities of moral leaders in turbulent environments: a review, theory integration and way forward

Purpose This paper’s purpose is to challenge the traditional assumption in leadership studies that leaders’ traits and capabilities impact effectiveness irrespective of the environment in which they operate. We identify the cognitive capabilities (CCs) of moral leaders that increase their efficacy in turbulent environments. To identify these capabilities, we integrate the strategic management literature on dynamic managerial capabilities (DMCs) into the field of moral leadership. We explore the micro-foundations of DMCs—that is, the CCs of moral leaders that underpin their abilities to sense and seize opportunities and reconfigure organizations—and show that CCs are effective in environmental turbulence. Design/methodology/approach We review 74 articles on moral leaders—including ethical, authentic, and servant leaders—and analyze their CCs that enable effectiveness in turbulent environments. Findings Moral leaders sense opportunities by drawing on their CCs for attention and perception. They seize opportunities with intuitive moral judgment and conscious moral reasoning, and by considering diverse perspectives and followers’ needs when problem solving. They reconfigure with vision-inspired storytelling, collaboration, and trust-building among stakeholders. Practical implications Organizations should use coaching, mentoring, and training to develop the CCs of moral leaders, and institutionalize these skills in their organizations. Originality/value We illustrate that the environment is an important determinant of the effectiveness of moral leaders’ capabilities. By integrating the DMC literature into the moral leadership field, we identify the distinctive CCs of ethical, authentic, and servant leaders that make them effective in turbulent environments.