TRANSFORMATIONAL LEADERSHIP AND INNOVATIVE WORK BEHAVIOR: EFFECT OF PSYCHOLOGICAL EMPOWERMENT
Abstract
Previous studies have shown the value of innovation inside firms. One of the predictors toward innovation is good leadership. Thus, this study is conducted to examine the association between transformational leadership and innovative work behavior (IWB) among 384 employees that working in commercial banking industry in China. In addition, the effect of psychological empowerment is examined as a moderator that can alter the relationship. Set of questionnaires were used as a method to collect the data and analyzed by using PLS-SEM. The findings suggested psychological empowerment able to moderates the relationship between transformational leadership and IWB. The study contributes to the extent literature and practitioners on how psychological empowerment moderates the relationship between transformational leadership and IWB among employees.
References
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Bashir, M., Naqshbandi, M. M., & Farooq, R. (2020). Business Model Innovation: A Systematic Review and Future Research Directions. International Journal of Innovation Science, 12(4), 457-476.
Bass, B. M. (1985). Leadership and Performance Beyond Expectations. Free Press; Collier Macmillan.
Bass, B. M., & Avolio, B. (1993). Transformational Leadership and Organizational Culture. Public Administration Quarterly, 17(1), 112-121.
Browne, M. W., & Cudeck, R. (1993). Alternative ways of assessing model fit. In K. A. Bollen and J. S. Long (Eds.), Testing structural equation models (pp. 136-162). Newbury Park, CA: Sage.
Chen, M., Zada, M., Khan, J., & Saba, N., U. (2022). How Does Servant Leadership Influence Creativity? Enhancing Employee Creativity via Creative Process Engagement and Knowledge Sharing. Frontiers in Psychology, 13, 947092, 1-12.
David, K. G., Yang, W., Pei, C., & Moosa, A. (2023). Effect of Transformational Leadership on Open Innovation through Innovation Culture: Exploring the Moderating Role of Absorptive Capacity. Technology Analysis and Strategic Management,35(5), 613-628.
De Jong, J. P. J., & Den Hartog, D. N. (2010). Innovative Wok Behaviour: Measurement and Validation, Creativity and Innovation Management, 9(1), 23-34.
Demesko, N. (2017). Effects of Transformational and Transactional Leadership Styles on Innovative Work Behavior: The Role of Employee’s Locus of Control [Master Thesis, ISM University of Management and Economics]. ISM University of Management and Economics Repository.
Dong, D. T., Nguyen, M. T. T., & Nghia, K. (2019). Knowledge Sharing and Innovative Work Behavior: The Case of Vietnam. Uncertain Supply Chain Management, 7, 619-634.
Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18, 382-388.
Groselj, M., Cerne, M., Penger, S., & Grah, B. (2020). Authentic and Transformational Leadership and Innovative Work Behaviour: The Moderating Role of Psychological Empowerment. Leadership and Innovative Work Behaviour, 24(3), 677-706.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010) Multivariate Data Analysis. 7th Edition, Pearson, New York.
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Menon, S. T. (2002). Toward a Model of Psychological Health Empowerment: Implications for Health Care in Multicultural Communities. Nurse Education Today, 22(1), 28-39.
Mehmet, E. O., Umut, A., & Necati C. (2019). The Relationship between Teachers’ Organizational Commitment, Job Satisfaction, and Whistle Blowing. Sustainability, 11(21), 1-22.
Mohd Fahmi, A., Nurhanan Syafiah, A. R., Musmuliadi, K., & Muhammad Alshurideh (2023). The Effect of Transformational Leadership Toward Organizational Innovation: A Study of Aerospace Manufacturing Industry in Malaysia. Studies in Computational Intelligence,1056, 1515-1528.
Muchiri, M. K., McMurray, A. J., Nkhoma, M., & Pham, H. C. (2020). Mapping Antecedents of Innovative Work Behavior: A Conceptual Review. The Journal of Developing Areas, 54(4), 1548-2278.
Norulhuda, T., Rasidah, A., Riza Munira, S., & Yusrizal Sufardi, M. Y. (2019). Relationships between Goal Orientation, Self-Monitoring and Innovative Work Behavior: Affective Commitment as Mediator. Journal of Management, 56, 1-17.
Phung, V. D., Hawryszkiewycz, I., & Chandran, D. (2019). How Knowledge Sharing Leads to Innovative Work Behavior: A Moderating Role of Transformational Leadership. Journal of Systems and Information Technology, 21(3), 277-303.
Pradhan, S., & Jena, L. K. (2019). Does Meaningful Work Explains the Relationship between Transformational Leadership and Innovative Work Behaviour? Indian Institute of Management, 44(1), 30-40.
Purwanto, A., Purba, J. T., Bernarto, I., & Sijabat, R. (2021). The Role of Transformational Leadership, Organizational Citizenship Behaviour, Innovative Work Behaviour, Quality Work Life, Digital Transformation and Leader Member Exchange on Universities Performance. Linguistica Antverpiensia, 2, 2908-2932.
Rafique, M. A., Hou, Y., Chudhery, M., A., Z., Waheed, M., Zai, T., & Chan, F. (2022). Investigating the Impact of Pandemic Job Stress and Transformational Leadership on Innovative Work Behavior: The Mediating and Moderating Role of Knowledge Sharing. Journal of Innovation and Knowledge, 7(3), 1-11.
Rizki, M., Parashakti, R. D., & Saragih, L. (2019). The Effect of Transformational Leadership and Organizational Culture Towards Employees’ Innovative Behaviour and Performance. International Journal of Economics and Business Administration, 7(1), 227-239.
Saeed, B., Afsar, B., Shahjeha, A., & Shah, S. I. (2019). Does Transformational Leadership Foster Innovative Work Behavior? The Roles of Psychological Empowerment, Intrinsic Motivation, and Creative Process Engagement. Economic Research, 32(1), 254-281.
Schermuly, C., C., & Meyer, B. (2020). Transformational Leadership, Psychological Empowerment, and Flow at Work. European Journal of Work and Organizational Psychology, 29(5), 740-752.
Siregar, Z. M. E., Suryana, Ahman, E., & Senen, S. H. (2019). Factors Influencing Innovative Work Behavior: An Individual Factors Perspective. International Journal of Scientific and Technology Research, 8(9), 2277-8616.
Yi, L., Uddin, M. A., Das, A. K., Mahmood, M., & Sohel, S. M. (2019). Do Transformational Leaders Engage Employees in Sustainable Innovative Work Behaviour? Perspective from a Developing Country. Knowledge and Intellectual Capital
Zawawi, A., Putrawan, I. M., & Hamidah (2019). Linking Leadership Styles and Organizational Commitment in the Industry of Automotive Components: The Mediating Role of Procedural Justice. International Journal of Innovative Technology and Exploring Engineering 8(6), 137-143.
Zimmerman, M., A. (1995). Psychological Empowerment: Issues and Illustrations. American Journal of Community Psychology, 23, 581-599.
Antonakis, J., Bastardoz, N., Jacquart, P., & Shamir, B. (2016). Charisma: An ill-defined and ill-measured gift. Annual Review of Organizational Psychology and Organizational Behavior, 3, 293–319. https://doi.org/10.1146/annurev-orgpsych-041015-062305
Asma, U. H., Sunan, I., & Mahmud, H. (2021). A Review of the Relationship of Idealized Influence, Inspirational Motivation, Intellectual Simulation, and Individual Consideration with Sustainable Employees Performance. International Journal of Progressive Sciences and Technologies, 25(1), 322-326.
Bandura, A. (1985). Model of Causality in Social Learning Theory. Cognition and Psychotherapy In: Mahoney, M.J., Freeman, A. (eds) Cognition and Psychotherapy. Springer, Boston, MA. https://doi.org/10.1007/978-1-4684-7562-3_3
Bashir, M., Naqshbandi, M. M., & Farooq, R. (2020). Business Model Innovation: A Systematic Review and Future Research Directions. International Journal of Innovation Science, 12(4), 457-476.
Bass, B. M. (1985). Leadership and Performance Beyond Expectations. Free Press; Collier Macmillan.
Bass, B. M., & Avolio, B. (1993). Transformational Leadership and Organizational Culture. Public Administration Quarterly, 17(1), 112-121.
Browne, M. W., & Cudeck, R. (1993). Alternative ways of assessing model fit. In K. A. Bollen and J. S. Long (Eds.), Testing structural equation models (pp. 136-162). Newbury Park, CA: Sage.
Chen, M., Zada, M., Khan, J., & Saba, N., U. (2022). How Does Servant Leadership Influence Creativity? Enhancing Employee Creativity via Creative Process Engagement and Knowledge Sharing. Frontiers in Psychology, 13, 947092, 1-12.
David, K. G., Yang, W., Pei, C., & Moosa, A. (2023). Effect of Transformational Leadership on Open Innovation through Innovation Culture: Exploring the Moderating Role of Absorptive Capacity. Technology Analysis and Strategic Management,35(5), 613-628.
De Jong, J. P. J., & Den Hartog, D. N. (2010). Innovative Wok Behaviour: Measurement and Validation, Creativity and Innovation Management, 9(1), 23-34.
Demesko, N. (2017). Effects of Transformational and Transactional Leadership Styles on Innovative Work Behavior: The Role of Employee’s Locus of Control [Master Thesis, ISM University of Management and Economics]. ISM University of Management and Economics Repository.
Dong, D. T., Nguyen, M. T. T., & Nghia, K. (2019). Knowledge Sharing and Innovative Work Behavior: The Case of Vietnam. Uncertain Supply Chain Management, 7, 619-634.
Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18, 382-388.
Groselj, M., Cerne, M., Penger, S., & Grah, B. (2020). Authentic and Transformational Leadership and Innovative Work Behaviour: The Moderating Role of Psychological Empowerment. Leadership and Innovative Work Behaviour, 24(3), 677-706.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010) Multivariate Data Analysis. 7th Edition, Pearson, New York.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017) A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 2nd Edition, Sage Publications Inc., Thousand Oaks, CA.
Hansen, J. A. (2019). Managing Employee Innovative Behaviour through Transformational and Transactional Leadership Styles. Public Management Review, 6(21), 918-944.
Jensen, U. T., & Bro, L. (2018). How Transformational Leadership Supports Intrinsic Motivation and Public Service Motivation: The Mediating Role of Basic Need Satisfaction. The American Review of Public Administration, 48(6), 535–549.
Krejcie, R.V. & Morgan, D.W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30, 607-610.
Menon, S. T. (2002). Toward a Model of Psychological Health Empowerment: Implications for Health Care in Multicultural Communities. Nurse Education Today, 22(1), 28-39.
Mehmet, E. O., Umut, A., & Necati C. (2019). The Relationship between Teachers’ Organizational Commitment, Job Satisfaction, and Whistle Blowing. Sustainability, 11(21), 1-22.
Mohd Fahmi, A., Nurhanan Syafiah, A. R., Musmuliadi, K., & Muhammad Alshurideh (2023). The Effect of Transformational Leadership Toward Organizational Innovation: A Study of Aerospace Manufacturing Industry in Malaysia. Studies in Computational Intelligence,1056, 1515-1528.
Muchiri, M. K., McMurray, A. J., Nkhoma, M., & Pham, H. C. (2020). Mapping Antecedents of Innovative Work Behavior: A Conceptual Review. The Journal of Developing Areas, 54(4), 1548-2278.
Norulhuda, T., Rasidah, A., Riza Munira, S., & Yusrizal Sufardi, M. Y. (2019). Relationships between Goal Orientation, Self-Monitoring and Innovative Work Behavior: Affective Commitment as Mediator. Journal of Management, 56, 1-17.
Phung, V. D., Hawryszkiewycz, I., & Chandran, D. (2019). How Knowledge Sharing Leads to Innovative Work Behavior: A Moderating Role of Transformational Leadership. Journal of Systems and Information Technology, 21(3), 277-303.
Pradhan, S., & Jena, L. K. (2019). Does Meaningful Work Explains the Relationship between Transformational Leadership and Innovative Work Behaviour? Indian Institute of Management, 44(1), 30-40.
Purwanto, A., Purba, J. T., Bernarto, I., & Sijabat, R. (2021). The Role of Transformational Leadership, Organizational Citizenship Behaviour, Innovative Work Behaviour, Quality Work Life, Digital Transformation and Leader Member Exchange on Universities Performance. Linguistica Antverpiensia, 2, 2908-2932.
Rafique, M. A., Hou, Y., Chudhery, M., A., Z., Waheed, M., Zai, T., & Chan, F. (2022). Investigating the Impact of Pandemic Job Stress and Transformational Leadership on Innovative Work Behavior: The Mediating and Moderating Role of Knowledge Sharing. Journal of Innovation and Knowledge, 7(3), 1-11.
Rizki, M., Parashakti, R. D., & Saragih, L. (2019). The Effect of Transformational Leadership and Organizational Culture Towards Employees’ Innovative Behaviour and Performance. International Journal of Economics and Business Administration, 7(1), 227-239.
Saeed, B., Afsar, B., Shahjeha, A., & Shah, S. I. (2019). Does Transformational Leadership Foster Innovative Work Behavior? The Roles of Psychological Empowerment, Intrinsic Motivation, and Creative Process Engagement. Economic Research, 32(1), 254-281.
Schermuly, C., C., & Meyer, B. (2020). Transformational Leadership, Psychological Empowerment, and Flow at Work. European Journal of Work and Organizational Psychology, 29(5), 740-752.
Siregar, Z. M. E., Suryana, Ahman, E., & Senen, S. H. (2019). Factors Influencing Innovative Work Behavior: An Individual Factors Perspective. International Journal of Scientific and Technology Research, 8(9), 2277-8616.
Yi, L., Uddin, M. A., Das, A. K., Mahmood, M., & Sohel, S. M. (2019). Do Transformational Leaders Engage Employees in Sustainable Innovative Work Behaviour? Perspective from a Developing Country. Knowledge and Intellectual Capital
Zawawi, A., Putrawan, I. M., & Hamidah (2019). Linking Leadership Styles and Organizational Commitment in the Industry of Automotive Components: The Mediating Role of Procedural Justice. International Journal of Innovative Technology and Exploring Engineering 8(6), 137-143.
Zimmerman, M., A. (1995). Psychological Empowerment: Issues and Illustrations. American Journal of Community Psychology, 23, 581-599.
Published
2023-06-30
How to Cite
SUN, Yishu et al.
TRANSFORMATIONAL LEADERSHIP AND INNOVATIVE WORK BEHAVIOR: EFFECT OF PSYCHOLOGICAL EMPOWERMENT.
International Journal of Business and Economy, [S.l.], v. 5, n. 2, p. 81-97, june 2023.
ISSN 2682-8359.
Available at: <https://myjms.mohe.gov.my/index.php/ijbec/article/view/23211>. Date accessed: 16 oct. 2024.
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