The impact of cultural dimensions and leadership on project success
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Date
2026
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Publisher
UMT, Lahore
Abstract
This study analyzes the role of cultural diversity in shaping successful leadership via the mediating role of psychological empowerment and the moderating role of the success of a project in organizational project settings. The research aimed at meeting an increasing demand for knowledge on the role of diversity dynamics and empowerment mechanisms in proving efficacy of leadership in environments under consideration. Data have been collected using a structured survey instrument and the results were assessed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The trustworthiness and accuracy of the measurement model were examined, and all of the constructs met the criteria for internal consistency, convergent validity and discriminant validity. The structural model assessment gave us information about the hypothesized relationships. The results show that cultural diversity is a significant factor in project success, which then provides a powerful predictor in leadership success. Furthermore, psychological empowerment has a positive and significant impact on leadership success and it is important as a mediating factor. However, the moderating role of project success on the link between psychological empowerment and leadership success was not statistically significant. Mediation analysis proved that the relationship between cultural diversity and leadership success is mediated by project success, making the indirect effect stronger. This study adds to the ever growing body of literature on project management as well as organizational behavior in that it shows the interaction between cultural diversity, empowerment, and success outcome. It has some interesting implications for practitioners in that it suggests that organizations should embrace cultural diversity and promote psychological empowerment for the effective leadership and project outcomes.