The mediating role of dynamic capabilities and the moderating role of knowledge transfer in the effect of authentic leadership on social innovation initiatives: A research in the fmcg industry multinationals in Türkiye.

This study investigates the mechanisms through which authentic leadership (AL) drives social innovation initiatives (SIIs) in multinational fast-moving consumer goods (FMCG) firms operating in Türkiye. It employs the new institutional theory as the analytical framework. Using a cross-sectional survey design, the researcher collected data from 442 individuals in Türkiye's FMCG sector to examine the mediating role of dynamic capabilities (DCs) and the moderating influence of knowledge transfer (KT) on the AL and SIIs relationship. Structural equation modelling revealed that AL significantly enhances SIIs (β = 0.414, p < .001), with DCs fully mediating this linkage (indirect effect β = 0.364, p < .001). While KT demonstrated a direct positive association with SIIs (β = 0.278, p < .05), its hypothesised moderating effect was insignificant, suggesting organisational knowledge flows function independently rather than interactively with leadership. The findings advance theoretical understanding by delineating DCs as the critical conduit through which AL's ethical and relational attributes translate into innovative social innovation outcomes, effectively challenging conventional assumptions about the contingent role of KT in this relationship. The contextual analysis highlights how Türkiye's collectivist cultural norms and institutional pressures shape the adoption of SIIs within profit-driven enterprises. Practical implications emphasise the need for FMCG executives to develop AL competencies and adaptive organisational capabilities to navigate complex socio-economic challenges while achieving sustainable impact. Keywords: Authentic leadership, dynamic capabilities, knowledge transfer, social innovation initiatives, new institutional theory, MNCs, FMCG sector, Türkiye, and emerging markets.