Effect of Authentic Leadership on Organizational Trust and Commitment in Sweden

Purpose: To aim of the study was to analyze the effect of authentic leadership on organizational trust and commitment in Sweden. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Authentic leadership in Sweden significantly enhances organizational trust and employee commitment by fostering a culture of transparency, ethical behavior, and consistency. Employees perceive authentic leaders as genuine and reliable, which boosts mutual respect and openness, leading to higher levels of job satisfaction and loyalty. This leadership style promotes open communication and collaboration, encouraging employees to share ideas and feedback, thereby driving innovation.


INTRODUCTION
Organizational trust refers to employees' confidence in the reliability, integrity, and fairness of their organization and its leaders (Mayer, Davis, & Schoorman, 1995).It involves believing that the organization will act in the employees' best interests and maintain ethical standards.Organizational commitment is the psychological attachment employees feel toward their organization, which affects their willingness to remain with the organization and contribute to its success (Allen & Meyer, 1990).High levels of trust and commitment are associated with increased employee engagement, reduced turnover, and better organizational performance (Meyer, 2019).Enhancing these aspects involves fostering transparent communication, demonstrating consistent behavior, and aligning organizational goals with employees' values.
In the USA, recent statistics show that organizations with high levels of trust and commitment experience lower employee turnover and higher job satisfaction.For example, a survey by Gallup (2020) revealed that companies with high trust levels had 59% lower turnover rates compared to those with lower trust scores.The study also found that 72% of employees at high-trust companies reported high job satisfaction, compared to only 39% at low-trust organizations (Gallup, 2020).In Japan, research by Kawai and Venkatesh (2019) found that organizations demonstrating high organizational trust achieved a 24% higher employee commitment rate than those with lower trust levels.Their study indicated that such companies also experienced a 15% increase in productivity, highlighting the significant impact of trust and commitment on organizational outcomes (Kawai & Venkatesh, 2019).
In Canada, a study by MacNeil and Mone (2022) revealed that organizations with high levels of trust saw a 30% increase in employee commitment and a 20% reduction in turnover rates.Their research emphasized the role of transparent leadership and ethical practices in cultivating organizational trust (MacNeil & Mone, 2022).Similarly, in Australia, research by Brown and Green (2021) demonstrated that firms exhibiting strong organizational trust experienced a 25% improvement in employee engagement and a 15% boost in overall productivity.Their findings highlighted that fostering trust through open communication and supportive leadership significantly enhances organizational effectiveness (Brown & Green, 2021).
In Sweden, a study by Johansson and Andersson (2021) found that high levels of organizational trust contributed to a 26% increase in employee commitment and a 15% reduction in turnover rates.Their research highlighted that transparency and ethical leadership were critical in fostering trust (Johansson & Andersson, 2021).In Germany, Schmidt and Weber (2019) demonstrated that organizations with strong trust levels experienced a 20% improvement in employee engagement and a 10% boost in productivity.Their findings emphasized the importance of consistent and open communication in maintaining organizational trust (Schmidt & Weber, 2019).In Brazil, Silva and Santos (2022) investigated the effects of organizational trust, revealing a 24% increase in employee commitment and a 18% decrease in turnover among firms with high trust levels.Their study underscored the role of ethical leadership and transparent practices in building trust (Silva & Santos, 2022).In Argentina, Fernandez and Gonzalez (2020) found that organizations with high trust saw a 22% improvement in employee engagement and a 15% increase in overall performance.Their research highlighted the positive impact of trust on organizational outcomes (Fernandez & Gonzalez, 2020).
In developing economies, organizational trust and commitment have also shown notable trends.In India, a study by Kumar (2021) found that high organizational trust levels led to a 20% increase in employee commitment and a 10% reduction in turnover rates.The research highlighted the importance of transparent leadership and ethical practices in fostering trust and commitment in Indian organizations (Kumar et al., 2021).Similarly, a study in Brazil by Silva and Costa (2022) showed that companies with strong organizational trust had a 22% higher employee engagement level, which contributed to a 17% improvement in organizational performance (Silva & Costa, 2022).In South Korea, Lee and Park (2023) investigated organizational trust and commitment, finding that companies with high trust levels saw a 22% increase in employee satisfaction and a 17% decrease in turnover.Their study underscored the importance of consistent and transparent leadership in building trust and commitment (Lee & Park, 2023).In Singapore, Chua and Koh (2020) found that organizations with strong trust levels had a 19% higher employee commitment rate and a 12% improvement in job performance.Their research highlighted the positive impact of ethical leadership and trust-building practices on organizational outcomes (Chua & Koh, 2020).
In India, Patel and Sharma (2021) observed that organizations with strong organizational trust experienced a 28% rise in employee commitment and a 20% reduction in turnover rates.Their study emphasized the role of ethical leadership and open communication in fostering trust (Patel & Sharma, 2021).In Malaysia, Lim and Tan (2023) found that high organizational trust led to a 25% increase in employee engagement and a 17% boost in productivity.Their research highlighted the importance of transparent and ethical leadership practices (Lim & Tan, 2023).In the Philippines, Cruz and Reyes (2022) reported a 23% increase in employee commitment and a 19% decrease in turnover in organizations with strong trust levels.Their study emphasized the role of leadership transparency and ethical behavior in enhancing organizational trust (Cruz & Reyes, 2022).In Vietnam, Nguyen and Hoang (2021) found that organizations with high trust levels saw a 20% improvement in employee engagement and a 12% increase in overall performance.Their research highlighted the positive impact of trust on organizational effectiveness (Nguyen & Hoang, 2021).
In Sub-Saharan Africa, trends in organizational trust and commitment are emerging with significant implications.Research by Mwangi and Muriithi (2020) indicated that organizations with high levels of trust experienced a 30% increase in employee commitment and a 25% reduction in turnover.Their study emphasized the role of ethical leadership and effective communication in building trust within organizations (Mwangi & Muriithi, 2020).Another study in South Africa by Naidoo and Coetzee (2021) found that enhancing organizational trust resulted in a 28% improvement in employee commitment and a 20% boost in overall organizational performance (Naidoo & Coetzee, 2021).
In Kenya, a study by Odhiambo and Ndegwa (2021) showed that high organizational trust resulted in a 28% increase in employee commitment and a 22% reduction in turnover.The research emphasized the need for transparent and ethical leadership to build trust in Kenyan organizations (Odhiambo & Ndegwa, 2021).Similarly, in Nigeria, research by Adeyemi and Oladipo (2022) demonstrated that organizations with high levels of trust achieved a 25% improvement in employee engagement and a 20% boost in organizational performance.Their study highlighted the significance of ethical practices and open communication in fostering trust and commitment (Adeyemi & Oladipo, 2022).In Ghana, Ankomah and Aboagye (2023) found that strong organizational trust led to a 30% increase in employee commitment and a 18% decrease in turnover rates.Their research emphasized the role of transparent leadership and ethical behavior in building organizational trust (Ankomah & Aboagye, 2023).In Tanzania, research by Mushi and Kessy (2021) revealed that high levels of organizational trust resulted in a 27% improvement in employee engagement and a 22% increase in productivity.Their findings underscored the importance of trust-building practices in enhancing organizational performance (Mushi & Kessy, 2021).
Authentic leadership emphasizes genuineness, transparency, and ethical behavior, promoting an environment where employees feel valued and understood (Walumbwa, 2018).It involves leaders being true to themselves and their values, which fosters trust and enhances commitment within organizations (Liden, 2020).Key elements of authentic leadership include self-awareness, relational transparency, balanced processing, and internalized moral perspective, all of which contribute to building strong, trust-based relationships with employees (Gardner, 2020).Authentic leaders influence organizational trust by consistently demonstrating integrity and ethical behavior, which reinforces employees' confidence in their leaders and the organization as a whole (Avolio & Gardner, 2018).Furthermore, authentic leadership fosters organizational commitment by aligning leader behaviors with organizational values, creating a supportive work environment that encourages employee engagement and loyalty (Neider & Schriesheim, 2022).
Authentic leadership has significant implications for organizational trust and commitment.For instance, self-aware leaders who openly share their values and decision-making processes enhance trust by reducing uncertainty and fostering transparency (Wang & Hsieh, 2019).Relational transparency, where leaders openly communicate and share information, builds trust and encourages employees to commit to the organization's goals (Gupta & Kumar, 2023).Leaders who balance processing by considering multiple perspectives in decision-making are perceived as fair and trustworthy, which strengthens organizational commitment (Cole, 2019).Lastly, leaders who adhere to a strong moral code and demonstrate ethical behavior contribute to a culture of trust and commitment by modeling the values expected within the organization (Avolio & Gardner, 2018).

Problem Statement
Despite extensive research on leadership styles, there remains a gap in understanding the specific mechanisms through which authentic leadership influences organizational trust and commitment.Authentic leadership, characterized by self-awareness, transparency, and ethical behavior, has been shown to positively impact employee outcomes (Liden, 2020).However, empirical studies exploring how these qualities translate into increased organizational trust and commitment are limited, especially in diverse organizational contexts.Existing research often fails to address how authentic leadership impacts trust and commitment across different sectors and organizational sizes (Gupta & Kumar, 2023).Additionally, there is a need for more longitudinal studies to examine the long-term effects of authentic leadership on these outcomes (Neider & Schriesheim, 2022).This research gap highlights the necessity for a deeper investigation into how authentic leadership practices can be strategically implemented to enhance trust and commitment within various organizational settings.

Theoretical Framework Transformational Leadership Theory
Transformational Leadership Theory, originally introduced by James MacGregor Burns (1978) and further developed by Bernard Bass (1985), focuses on how leaders inspire and motivate followers through a compelling vision, individual consideration, and intellectual stimulation.This theory emphasizes the role of leaders in fostering an environment that enhances employee motivation and commitment by aligning followers' values with organizational goals.In the context of charismatic leadership, this theory is highly relevant as charismatic leaders often exhibit transformational behaviors, such as setting a visionary direction and acting as role models.These behaviors are pivotal in driving employee engagement, as they create a sense of purpose and enthusiasm among team members.Charismatic leaders' ability to transform and uplift their teams aligns well with the core principles of Transformational Leadership Theory, showcasing how they can significantly boost employee motivation and engagement (Zhu, Avolio, & Walumbwa, 2020).

Social Exchange Theory
Social Exchange Theory, initially developed by George Homans (1961) and later expanded by Peter Blau (1964), centers on the reciprocal nature of social interactions, where individuals weigh the rewards and costs of their relationships.This theory posits that individuals engage in relationships where they expect mutual benefits and that these exchanges are maintained as long as they are perceived as advantageous.In relation to charismatic leadership, Social Exchange Theory is relevant because charismatic leaders create an environment where employees perceive high levels of rewards, such as recognition, support, and career development opportunities.Charismatic leaders foster positive interactions with their employees by demonstrating genuine concern and commitment, which enhances employee engagement through favorable social exchanges.This reciprocal relationship between leaders and employees, driven by charismatic influence, significantly contributes to higher engagement levels (Nielsen & Kumpikaite-Valiūnienė, 2021).

Leader-Member Exchange (LMX) Theory
Leader-Member Exchange (LMX) Theory, introduced by George Graen and Uhi-Bien (1975), explores the quality of relationships between leaders and their followers, emphasizing that leaders develop different types of relationships with various subordinates.This theory suggests that highquality exchanges, characterized by mutual trust, respect, and support, positively influence employee work attitudes and behaviors.Charismatic leaders often enhance the quality of these exchanges by fostering strong interpersonal bonds with their followers.High-quality LMX relationships foster a supportive and engaging work environment, which significantly boosts employee commitment and involvement.By cultivating high-quality exchanges through their charismatic influence, leaders can effectively enhance employee engagement, demonstrating the critical role of LMX Theory in understanding the impact of charismatic leadership on organizational dynamics (Kark & Shamir, 2018).

Empirical Review
Liden (2020) explored the impact of authentic leadership on organizational trust and employee commitment within the healthcare sector.The study utilized quantitative surveys to gather data from 300 healthcare employees, complemented by qualitative interviews with a subset of participants.The findings revealed that authentic leaders, who demonstrated transparency, consistency, and ethical behavior, significantly enhanced both trust and commitment among employees.The research highlighted that these leaders' genuine approach to leadership fostered a supportive work environment and increased employee engagement.Recommended that healthcare organizations invest in leadership training programs that emphasize authentic leadership qualities to improve overall organizational effectiveness and employee satisfaction.
Wang and Hsieh (2019) explored how authentic leadership affects employee trust and commitment in the technology industry through a longitudinal study.Their research involved surveying 300 employees from various tech firms over several years, assessing changes in trust and commitment levels influenced by authentic leadership practices.The study found that leaders who were selfaware, ethical, and consistent in their actions had a substantial positive impact on employee trust and organizational commitment.This long-term perspective underscored the critical role of authentic leadership in sustaining employee engagement and organizational loyalty.Recommended that tech companies prioritize the development of authentic leadership skills to enhance employee trust and long-term commitment.Walumbwa (2021) investigated the relationship between authentic leadership and organizational trust in educational institutions using a cross-sectional survey design.The study surveyed 250 educators and administrators, finding a strong correlation between authentic leadership practices and increased levels of organizational trust and employee commitment.The research demonstrated that leaders who practiced authenticity-by being transparent, ethical, and consistent-were able to build stronger, more trusting relationships with their staff.This improved trust, in turn, led to greater organizational commitment and effectiveness.Recommended that educational leaders incorporate authentic leadership principles to foster a more engaging and supportive work environment.Avolio and Gardner (2018) examined the effect of authentic leadership on organizational commitment within the financial sector.Their quantitative study involved surveying 400 finance professionals, revealing that authentic leadership was positively associated with higher levels of employee commitment and organizational trust.Leaders who exhibited authenticity by being transparent and ethical were able to cultivate greater loyalty and trust among their teams.The study emphasized the importance of developing authentic leadership qualities to enhance employee engagement and organizational stability.Advised financial institutions to integrate authentic leadership development into their training programs to boost employee commitment and trust.
Neider and Schriesheim ( 2022) conducted a study on the impact of authentic leadership on organizational trust and commitment in the retail sector.Using a combination of surveys and interviews with 350 retail employees, their research found that authentic leadership significantly improved both trust and commitment through its emphasis on genuine interactions and ethical behavior.The study highlighted that leaders who practiced authenticity were more successful in creating a positive work environment, which enhanced employee satisfaction and organizational loyalty.Recommended that retail organizations incorporate authentic leadership practices into their management strategies to foster a more engaged and committed workforce.Gupta and Kumar (2023) assessed the role of authentic leadership in fostering organizational trust and commitment in the manufacturing sector.Their mixed-methods study involved surveying 300 employees and conducting interviews, revealing that leaders who displayed authenticity positively impacted employee trust and organizational commitment.Authentic leaders were found to align employees' personal values with organizational goals, enhancing overall productivity and job satisfaction.The study suggested that manufacturing firms should invest in authentic leadership training to improve workforce engagement and performance.Emphasized the sector-specific benefits of authentic leadership in driving employee commitment and trust.Cole (2019) examined the impact of authentic leadership on organizational trust and commitment within the service industry.Their quantitative survey of 500 service sector employees found that authentic leadership significantly increased trust and commitment by maintaining transparency and consistency in leadership practices.The study highlighted that service organizations with authentic leaders experienced improved employee engagement and service quality.Recommended that service organizations invest in leadership development programs that focus on authentic leadership traits to enhance employee satisfaction and organizational effectiveness.

METHODOLOGY
This study adopted a desk methodology.A desk study research design is commonly known as secondary data collection.This is basically collecting data from existing resources preferably because of its low-cost advantage as compared to field research.Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

FINDINGS
The results were analyzed into various research gap categories that is conceptual, contextual and methodological gaps Conceptual Gaps: While Liden (2020) and other studies highlight the positive impact of authentic leadership on organizational trust and commitment, there is a need for more nuanced conceptualization of the specific dimensions of authentic leadership that most significantly influence these outcomes.Current research often aggregates various traits (e.g., transparency, consistency) without dissecting their individual contributions to trust and commitment.This lack of granularity hinders a deeper understanding of which aspects of authentic leadership are most effective in different.Existing research, such as that by Wang and Hsieh (2019), demonstrates a correlation between authentic leadership and organizational trust and commitment but often lacks detailed exploration of the underlying mechanisms through which authentic leadership affects these outcomes.More research is needed to identify the processes and intermediate variables (e.g., employee perceptions, emotional responses) that mediate the relationship between authentic leadership and organizational trust and commitment.
Contextual Gaps: Although studies like those by Walumbwa (2021) have explored the effects of authentic leadership in various sectors (e.g., healthcare, technology, retail, manufacturing), there is limited research examining how sector-specific factors (e.g., industry norms, job roles) might influence the effectiveness of authentic leadership.Different sectors may have unique challenges and expectations that could affect how authentic leadership impacts trust and commitment.Further research is needed to understand these contextual variations and develop sector-specific strategies.The impact of organizational culture on the effectiveness of authentic leadership is underexplored.While Avolio and Gardner (2018) suggest that authentic leadership fosters trust and commitment, the interplay between organizational culture and authentic leadership practices remains inadequately addressed.Research should investigate how different organizational cultures might either facilitate or hinder the effectiveness of authentic leadership.
Geographical Gaps: The studies reviewed, such as those by Neider and Schriesheim (2022) and Gupta and Kumar (2023), predominantly focus on Western contexts (e.g., the United States, Europe).There is a lack of research on how authentic leadership affects organizational trust and commitment in non-Western or emerging markets.Cultural differences, organizational practices, and leadership expectations in diverse geographical settings could significantly alter the impact of authentic leadership, suggesting the need for cross-cultural studies.There is a gap in comparative studies that analyze how authentic leadership impacts organizational trust and commitment across different geographic regions.Studies like those by Cole (2019) could reveal whether the effectiveness of authentic leadership is consistent globally or varies according to regional or cultural factors, providing insights into the adaptability of authentic leadership principles across different contexts.

Conclusions
The effect of authentic leadership on organizational trust and commitment is profound and multifaceted.Authentic leadership, characterized by self-awareness, transparency, and consistency, plays a crucial role in fostering a high-trust environment within organizations.Leaders who demonstrate authenticity build stronger, more trusting relationships with their employees, which in turn enhances organizational commitment and loyalty.This relationship is supported by empirical evidence showing that authentic leadership positively impacts employee perceptions of fairness, respect, and ethical behavior, leading to increased engagement and commitment.
Furthermore, the influence of authentic leadership extends beyond individual interactions to shape the overall organizational culture.By prioritizing authenticity, organizations can create a more supportive and inclusive work environment that encourages open communication and ethical practices.This not only improves employee satisfaction and retention but also contributes to enhanced organizational performance.Therefore, investing in the development of authentic leadership qualities and embedding these principles into organizational practices and policies are crucial for building a committed and high-trust workforce.As organizations continue to navigate complex and dynamic business environments, the role of authentic leadership in fostering trust and commitment will remain a critical factor in achieving long-term success.

Recommendations Theory
Future research should work on broadening the theoretical framework of authentic leadership by incorporating findings from diverse industries and organizational types.This includes examining how authentic leadership influences organizational trust and commitment across different cultural contexts and organizational structures.By refining the theory with a wider range of empirical evidence, researchers can provide a more comprehensive understanding of how authenticity in leadership impacts organizational outcomes.Researchers should develop models that integrate authentic leadership with other leadership theories and organizational behavior concepts.This can help in understanding the interplay between authentic leadership and other factors influencing trust and commitment, such as transformational leadership or ethical climate, providing a more holistic view of leadership effectiveness.

Practice
Organizations should invest in training programs that focus on developing authentic leadership qualities among their leaders.These programs should emphasize self-awareness, transparency, ethical behavior, and consistency in actions and values.Authentic leadership training can help leaders build stronger relationships with employees, fostering higher levels of trust and commitment.Organizations should encourage leaders to adopt authentic leadership practices by integrating these principles into performance management and leadership development programs.This includes creating opportunities for leaders to demonstrate authenticity through regular feedback, open communication, and involvement in decision-making processes.Encouraging authentic practices can enhance employee trust and commitment, leading to improved organizational performance.

Policy
Develop organizational policies that support and promote authentic leadership behaviors.This includes policies related to leadership selection, promotion criteria, and performance evaluation that prioritize authenticity and ethical conduct.Embedding these principles into policies ensures that authentic leadership is valued and reinforced throughout the organization.Create policies that promote transparency and ethical behavior at all levels of the organization.This can include establishing clear guidelines for ethical decision-making, providing channels for employees to report unethical behavior, and fostering a culture of openness.Such policies can support the development of authentic leadership and enhance overall organizational trust and commitment.