Authentically leading groups: The mediating role of collective psychological capital and trust FRED O. WALUMBWA 1 * , FRED LUTHANS 2 , JAMES B. AVEY 3 AND ADEGOKE OKE 1 1 Arizona State University, Tempe, Arizona, U.S.A. 2 University of Nebraska—Lincoln, Nebraska, U.S.A. 3 Central Washington University, Ellensburg, Washington, U.S.A. Summary Although there have been recent theoretical advances in what is increasingly being recognized as authentic leadership, research testing possible mediating processes and the impact on group- level outcomes has not received attention. To help address this need, this study examined at the group level of analysis the role that collective psychological capital and trust may play in the relationship between authentic leadership and work groups’ desired outcomes. Utilizing 146 intact groups from a large financial institution, the results indicated a significant relationship between both their collective psychological capital and trust with their group- level performance and citizenship behavior. These two variables were also found to mediate the relationship between authentic leadership and the desired group outcomes, even when controlling for transformational leadership. Implications for future research and practice conclude the paper. Copyright # 2009 John Wiley & Sons, Ltd. Introduction Authentic leadership has recently been comprehensively defined as ‘‘a pattern of leader behavior that draws upon and promotes both positive psychological capacities and a positive ethical climate, to foster greater self-awareness, an internalized moral perspective, balanced processing of information, and relational transparency on the part of leaders working with followers, fostering positive self- development’’ (Walumbwa, Avolio, Gardner, Wernsing, & Peterson, 2008, p. 94). Over the past several years, it has received growing attention in the leadership literature (Avolio, Gardner, Walumbwa, Luthans, & May, 2004; Gardner, Avolio, Luthans, May, & Walumbwa, 2005; Ilies, Morgeson, & Nahrgang, 2005; Luthans & Avolio, 2003). Although authentic leadership has had considerable intuitive (e.g., George, 2003) and theoretical support (e.g., Yammarino, Dionne, Schriesheim, & Dansereau, 2008), to date, little empirical research has been conducted in order to better understand the mechanisms by which authentic leaders exert their influence on effective behaviors. As Yammarino Journal of Organizational Behavior J. Organiz. Behav. 32, 4–24 (2011) Published online 1 September 2009 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/job.653 *Correspondence to: Fred O. Walumbwa, W.P. Carey School of Business, Arizona State University, Tempe, AZ 85287- 4006, U.S.A. E-mail: Fred.Walumbwa@asu.edu Copyright # 2009 John Wiley & Sons, Ltd. Received 7 November 2008 Revised 22 June 2009 Accepted 30 June 2009