The Effect of Leadership Styles on Innovative Behavior: Mediating Effect of Employee Psychological Empowerment and Moderating Influence of Organizational Learning Culture in The Case of Selected Pharmaceutical Manufacturing Companies in Ethiopia
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Date
2024-10-15
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AAU
Abstract
Leaders are expected to enhance the creative behavior of their followers by adopting various
leadership styles. This study aimed to investigate the impact of authentic, transformational,
and servant leadership on employees' innovative work behavior within Ethiopia's
pharmaceutical manufacturing industry. It also explored the mediating role of psychological
empowerment and the moderating role of organizational learning culture between these
leadership styles and innovative work behavior. A combination of explanatory and descriptive
research designs, along with a quantitative approach, was employed. A total of 303
respondents were selected from seven pharmaceutical manufacturing companies in Addis
Ababa using quota sampling. Structural equation modeling with bootstrapping techniques
and descriptive statistics were employed for analysis. The analysis reveals that both Authentic
Leadership authentic leadership and Servant Leadership positively influence psychological
empowerment. In contrast, Transformational Leadership negatively affects psychological
empowerment. Furthermore, authentic leadership significantly enhances Innovative Work
Behavior while servant leadership and transformational leadership do not have significant
effects on innovative work behavior. The bootstrapping technique confirms that PE partially
and fully mediate the effect authentic and servant leadership respectively, however,
transformational leadership do not show significant indirect effects on innovative work
behavior. Organizational learning culture positively influences innovative working behavior,
but negatively moderates the relationship between authentic leadership and innovative work
behavior. Conversely, organizational learning culture positively moderates the relationship
between transformational leadership and innovative work behavior. The findings suggest that
while authentic leadership effectively fosters innovation through psychological empowerment,
the existing organizational learning culture may hinder this relationship. To enhance
innovative behavior, pharmaceutical companies should develop supportive organizational
learning culture practices that complement authentic leadership, thereby maximizing its
positive impact on innovative work behaviour. This study emphasizes the critical role of
leadership styles and organizational contexts in promoting employee innovation within the
industry