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This empirical research draws on the existing theory of transformational leadership, adaptive culture and organizational resilience, and investigates the effect of the elected TQM leadership style “transformational leadership” through the mediating effect of adaptive culture on organizational resilience, that is the key of survival during crises like the recent COVID-19 pandemic, which has severely impacted the business globally.

This study exploited a cross-sectional online questionnaire of a random sample of Dubai service firms, with the unit of analysis being at the firm level. In total, 379 usable responses were received. Regression analysis was conducted to test hypotheses.

The overall findings of this study supported that transformational leadership is positively associated with both adaptive culture and firm's resilience and significantly impacts them. Adaptive culture was found partially mediating the effect of transformational leadership on organizational resilience.

The research findings provide important insights to practitioners (managers and leaders) to better improve their transformational qualities, as these qualities are expected to improve the organizational adaptive cultures and capacity of resilience.

To the best of the authors' knowledge, this is one of the first studies to examine the transformational leadership effect on organizational adaptive culture and firm's resilience. This investigation expands the boundaries of leadership style theory into new arenas, attempting to partially address the identified knowledge gap in this vein.

Using the upper echelons theory, this study aims to investigate the moderating effect of managerial discretion (MD) on the impact of dynamic managerial capabilities (DMCs) on established firms’ (EFs) response strategies to disruptive innovation (RStDI).

A cross-sectional study was conducted using an online questionnaire to collect data from senior management of sample firms, targeting the population of professional service firms (PSFs) operating in the Emirate of Dubai. After receiving 491 responses, data was analyzed using IBM packages (SPSS and Amos) through a covariance-based structural equation modeling technique.

As proposed, the underpinnings of DMCs (managerial human capital, managerial social capital and managerial cognitive perceptions) were associated with EFs’ strategies for responding to DIs. Surprisingly, despite theoretical predictions, MD did not moderate the relationship. These findings provided support to the main propositions of the upper echelons theory, however, not for its contextual moderator (MD).

The cross-sectional approach to testing the research model limits the identified significant effects that should be further investigated. The research sample was restricted to PSFs operating in Dubai, UAE, thus limiting the generalizability of the findings to the examined context.

The findings of this investigation are valuable to managers and hiring teams. They provide empirically supported insights on the critical role of managerial dynamic capabilities underpinnings (human capital, social capital and cognitive perceptions) in facilitating organizational RStDI. The findings also provide significant insights to policymakers, notably on the importance of innovative and well-crafted policies and regulative frameworks that enhance MD.

This study provides one of the first empirical quantitative analysis to assess MD and test its effects as a moderator, thus contributing significantly to the existing theoretical arguments on MD. To the best of the authors’ knowledge, this study is among the first to quantify the relationship between DMCs and organizational RStDI.