Abstract
Dialogical leadership is believed to be the most applicable leadership style in battling wicked issues. While the positive effect of dialogical leadership is inevitable, there are inadequate literature findings that evaluate the factors influencing its positive outcomes in an organizational setting. This research presents a theoretical and applied framework that tests the mediating role of psychological empowerment in the relationship between dialogical leadership and organizational brilliance. Survey data were collected from 110 managers of Al-Rasheed Bank in Baghdad, Iraq. The hypotheses were tested using multiple regression analysis. The results support positive associations between dialogical leadership and organizational brilliance and the effect of psychological empowerment on dialogical leadership and organizational brilliance. In addition, the results supported the mediation hypothesis. Based on the results, recommendations were formulated highlighting the necessary administrative practices leading to organizational brilliance in banking institutions in Iraq. It highlights the necessity of adequately helping and supporting bank managers who present new ideas that contribute to the development of the bank.