The Effect of Leadership Styles on Employees’ Innovative Work Behavior

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Addis Ababa University


This study tested the effect of leadership styles on Employees’ Innovative Work Behavior the effect between leadership style and Employees’ Innovative Work Behavior. The study employed explanatory research design and a quantitative research approach which included sample of 380 staff members. A multifactor Leadership Questionnaire and Employees’ Innovative Work Behavior Survey were used to collect data. Data were analyzed using descriptive statistics such as mean and standard deviations and inferential statistics such as ANOVA, and regression analysis. A Confirmatory factor analysis (CFA) is made to reduce irrelevant dimension of the factors of the Dependent variable (Employees’ Innovative Work Behavior). Thus of the Ten factors, eight were relevant to the Ethiopia’s particularly in the banking context. Both Transformational and Laissez-fair leadership are practiced above average in a five likert score, yet there is a room for improvement. The regression for both Transformational and Laissez-fair leadership result unveiled a positive and significant effect on the Employees’ Innovative Work behavior which is categorized in to four components while the transactional leadership style had a non-significant relationship. Leaders who frequently employ transformational and laissez-fair leadership create Innovative Work Behavior. Both Transformational and Laissez fair Leadership Styles have above average result in the five point likert scale but due to the fact that the two variables revealed statistically significant and positive effect on Employees’ Innovative Work Behavior, the Bank should have higher level of practice in the two leadership styles to have higher level of Employees’ Innovative Work Behavior