June 2025 Edition

IMPACT OF STRATEGIC LEADERSHIP ON PSYCHOLOGICAL SAFETY IN A MULTICULTURAL ENVIRONMENT

Okundalaiye, H., Abiodun, O., Iyobhebhe, I.

Abstract

This study examines the impact of strategic leadership on psychological safety in a multicultural environment, with a focus on three key dimensions: visioning, focusing, and implementation. Grounded in Leader-Member Exchange (LMX) theory, the research employed a descriptive, cross-sectional survey design targeting middle and top-level employees in a multinational conglomerate. Using validated instruments (Neumann and Neumann’s (1999) strategic leadership scale and Edmondson’s (1999) psychological safety scale), data were collected from a purposively selected sample across culturally diverse departments. Regression analysis revealed that all three strategic leadership dimensions significantly influence psychological safety. Visioning showed a moderate but significant impact (R² = .106, p < .001), implementation demonstrated a similarly significant effect (R² = .127, p < .001), while focusing emerged as the strongest predictor (R² = .316, p < .001). These findings led to the rejection of all null hypotheses and affirmed that strategic leadership, particularly the focusing component, plays a critical role in fostering psychological safety in multicultural contexts. The study recommends that organizations prioritize the development of strategic leadership capabilities, particularly in the areas of visioning, focusing, and implementation, to enhance psychological safety in multicultural settings. It also suggests integrating culturally adaptive leadership training to strengthen leader-member relationships and foster inclusive, psychologically safe workplaces

Keywords

Focusing, Implementation, Psychological Safety, Strategic Leadership, and Visioning

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