The influence of transformational leadership and HR practices on employee innovative work behavior through psychological capital as a mediator in MSMEs
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Abstract
This study examines the potential mediating role that psychological capital in the correlation between employees’ innovative work behavior, HR practices, and transformational leadership. According to this study's hypothesis, workers who experience the influence of transformational leadership and HR practices that use psychological capital as a mediating factor will be more likely to engage in creative work practices. Transformational leadership emphasizes leaders' ability to inspire and drive their followers, foster a workplace environment that promotes innovation. Employee innovation will also be promoted via HR practices about pay structures, professional growth, information exchange, and encouraging supervision. Employees who are proactive in developing and putting new ideas, solutions, and advancements into practice exhibit innovative work behavior. To bolster the developed hypotheses, Structural Equation Modeling (SEM-AMOS) is utilized in this study to investigate link between independent factors, dependent variables, and mediating variables. 234 people responded to the questionnaire used as the data collection method. The study's findings indicate that innovative work practices and employees' psychological capital are positively and significantly impacted by transformational leadership and HR practices. Psychological capital mediates HR Practices and employee innovative work behavior. Psychological capital does not exhibit a mediating role between innovative work behavior among employees and transformational leadership.
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How to Cite
Asli, S. H., Malini, H., Daud, I., Iman Kalis, M. C., & Fauzan, R. (2023). The influence of transformational leadership and HR practices on employee innovative work behavior through psychological capital as a mediator in MSMEs. Enrichment : Journal of Management, 13(5), 2915-2927. https://doi.org/10.35335/enrichment.v13i5.1702
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Gom, D., Yew, L. T., Jiony, M. M., Tanakinjal, G. H., & Sondoh, S. (2021). The role of transformational leadership and psychological capital in the hotel industry: A sustainable approach to reducing turnover intention. Sustainability (Switzerland), 13(19). https://doi.org/10.3390/su131910799
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Li, H., Sajjad, N., Wang, Q., Ali, A. M., Khaqan, Z., & Amina, S. (2019). Influence of transformational leadership on employees’ innovative work behavior in sustainable organizations: Test of mediation and moderation processes. Sustainability (Switzerland), 11(6). https://doi.org/10.3390/su11061594
Liu, Y., Chen, J., & Han, X. (2023). Research on the influence of employee psychological capital and knowledge sharing on breakthrough innovation performance. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.1084090
Manuti, A., & Giancaspro, M. L. (2019). People make the difference: An explorative study on the relationship between organizational practices, employees’ resources, and organizational behavior enhancing the psychology of sustainability and sustainable development. Sustainability (Switzerland), 11(5). https://doi.org/10.3390/su11051499
Miao, R., Bozionelos, N., Zhou, W., & Newman, A. (2021). High-performance work systems and key employee attitudes: the roles of psychological capital and an interactional justice climate. International Journal of Human Resource Management, 32(2). https://doi.org/10.1080/09585192.2019.1710722
Muhammad, A. (2022). The Mediating Role of Psychological Capital in the Relationship between Transformational Leadership and Job Performance. Pakistan Social Sciences Review, 6(II). https://doi.org/10.35484/pssr.2022(6-ii)68
Odoardi, C., Cangialosi, N., & Battistelli, A. (2022). HR training practices and innovative work behaviour: a moderated mediation model. International Journal of Human Resources Development and Management, 22(1–2). https://doi.org/10.1504/IJHRDM.2022.121320
Qi, L., Liu, B., Wei, X., & Hu, Y. (2019). Impact of inclusive leadership on employee innovative behavior: Perceived organizational support as a mediator. PLoS ONE, 14(2). https://doi.org/10.1371/journal.pone.0212091
Rodríguez-Cifuentes, F., Segura-Camacho, A., García-Ael, C., & Topa, G. (2020). The mediating role of psychological capital between motivational orientations and their organizational consequences. International Journal of Environmental Research and Public Health, 17(13). https://doi.org/10.3390/ijerph17134864
Saeed, B. Bin, Afsar, B., Hafeez, S., Khan, I., Tahir, M., & Afridi, M. A. (2019). Promoting employee’s proenvironmental behavior through green human resource management practices. Corporate Social Responsibility and Environmental Management, 26(2). https://doi.org/10.1002/csr.1694
Schuckert, M., Kim, T. T., Paek, S., & Lee, G. (2018). Motivate to innovate: How authentic and transformational leaders influence employees’ psychological capital and service innovation behavior. International Journal of Contemporary Hospitality Management, 30(2). https://doi.org/10.1108/IJCHM-05-2016-0282
Shah, T. A., Parray, Z. A., & Islam, S. ul. (2023). The empirical relationship between transformational leadership and job attitudes: mediating role of psychological capital – a study of healthcare in India. International Journal of Public Leadership, 19(1). https://doi.org/10.1108/IJPL-07-2022-0042
Slåtten, T., Mutonyi, B. R., & Lien, G. (2020). The impact of individual creativity, psychological capital, and leadership autonomy support on hospital employees’ innovative behaviour. BMC Health Services Research, 20(1). https://doi.org/10.1186/s12913-020-05954-4
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Yasir, M., & Majid, A. (2020). High-involvement HRM practices and innovative work behavior among production-line workers: mediating role of employee’s functional flexibility. Employee Relations, 42(4). https://doi.org/10.1108/ER-02-2018-0061
Ybema, J. F., van Vuuren, T., & van Dam, K. (2020). HR practices for enhancing sustainable employability: implementation, use, and outcomes. International Journal of Human Resource Management, 31(7), 886–907. https://doi.org/10.1080/09585192.2017.1387865
Bak, H. U., Jin, M. H., & McDonald, B. D. (2022). Unpacking the Transformational Leadership-Innovative Work Behavior Relationship: The Mediating Role of Psychological Capital. Public Performance and Management Review, 45(1). https://doi.org/10.1080/15309576.2021.1939737
Bos-Nehles, A. C., & Veenendaal, A. A. R. (2019). Perceptions of HR practices and innovative work behavior: the moderating effect of an innovative climate. International Journal of Human Resource Management, 30(18). https://doi.org/10.1080/09585192.2017.1380680
Bris, A., Wang, T. Y. H., Zatzick, C. D., Miller, D. J. P., Fern, M. J., Cardinal, L. B., Gregoire, D. A., Shepherd, D. A., Westphal, J. D., Shani, G., Troster, C., Van Quaquebeke, N., Lanaj, K., Hollenbeck, J. R., Ilgen, D. R., Barnes, C. M., Harmon, S. J., Feldman, E. R., DesJardine, M. R., … Sangiorgi, F. (2021). KNIGHTS, RAIDERS, AND TARGETS - THE IMPACT OF THE HOSTILE TAKEOVER - COFFEE,JC, LOWENSTEIN,L, ROSEACKERMAN,S. JOURNAL OF BANKING & FINANCE, 37(1).
Carter, J. W., & Youssef-Morgan, C. M. (2019). The positive psychology of mentoring: A longitudinal analysis of psychological capital development and performance in a formal mentoring program. Human Resource Development Quarterly, 30(3). https://doi.org/10.1002/hrdq.21348
Chen, Y., Ning, R., Yang, T., Feng, S., & Yang, C. (2018). Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships. Frontiers of Business Research in China, 12(1). https://doi.org/10.1186/s11782-018-0044-8
Daud, I., & Afifah, N. (2019). The Relationship between Leadership Style and Employee Outcomes: The Mediating Role of Organizational Commitment. GATR Journal of Management and Marketing Review, 4(2). https://doi.org/10.35609/jmmr.2019.4.2(1)
De Hoe, R., & Janssen, F. (2022). Re-creation After Business Failure: A Conceptual Model of the Mediating Role of Psychological Capital. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.842590
Dede, N. P. (2021). Enhancing Employee Innovative Work Behavior Through Human Resource Management Practices. In Research Anthology on Human Resource Practices for the Modern Workforce. https://doi.org/10.4018/978-1-6684-3873-2.ch064
Ekobelawati, F., Setyadi, D., & Hendri, M. I. (2019). Effect of Transformational Leadership Style and Knowledge Management on Organizational Innovation through Empowerment, Member Creativity and Learning Organization. Journal of Arts & Humanities.
Gom, D., Yew, L. T., Jiony, M. M., Tanakinjal, G. H., & Sondoh, S. (2021). The role of transformational leadership and psychological capital in the hotel industry: A sustainable approach to reducing turnover intention. Sustainability (Switzerland), 13(19). https://doi.org/10.3390/su131910799
Grošelj, M., Černe, M., Penger, S., & Grah, B. (2020). Authentic and transformational leadership and innovative work behaviour: the moderating role of psychological empowerment. European Journal of Innovation Management, 24(3). https://doi.org/10.1108/EJIM-10-2019-0294
Günzel-Jensen, F., Hansen, J. R., Jakobsen, M. L. F., & Wulff, J. (2018). A Two-Pronged Approach? Combined Leadership Styles and Innovative Behavior. International Journal of Public Administration, 41(12). https://doi.org/10.1080/01900692.2017.1303711
Han, X., Xu, Q., & Xiao, J. (2023). The Influence of School Atmosphere on Chinese Teachers’ Job Satisfaction: The Chain Mediating Effect of Psychological Capital and Professional Identity. Behavioral Sciences, 13(1). https://doi.org/10.3390/bs13010001
Hoch, J. E., Bommer, W. H., Dulebohn, J. H., & Wu, D. (2018). Do Ethical, Authentic, and Servant Leadership Explain Variance Above and Beyond Transformational Leadership? A Meta-Analysis. Journal of Management, 44(2). https://doi.org/10.1177/0149206316665461
Jawaad, M., Amir, A., Bashir, A., & Hasan, T. (2019). Human resource practices and organizational commitment: The mediating role of job satisfaction in emerging economy. Cogent Business and Management, 6(1). https://doi.org/10.1080/23311975.2019.1608668
Jun, K., & Lee, J. (2023). Transformational Leadership and Followers’ Innovative Behavior: Roles of Commitment to Change and Organizational Support for Creativity. Behavioral Sciences, 13(4). https://doi.org/10.3390/bs13040320
Karimi, S., Ahmadi Malek, F., Yaghoubi Farani, A., & Liobikienė, G. (2023). The Role of Transformational Leadership in Developing Innovative Work Behaviors: The Mediating Role of Employees’ Psychological Capital. Sustainability, 15(2). https://doi.org/10.3390/su15021267
Lambriex-Schmitz, P., Van der Klink, M. R., Beausaert, S., Bijker, M., & Segers, M. (2020). Towards successful innovations in education: Development and validation of a multi-dimensional Innovative Work Behaviour Instrument. Vocations and Learning, 13(2). https://doi.org/10.1007/s12186-020-09242-4
Li, H., Sajjad, N., Wang, Q., Ali, A. M., Khaqan, Z., & Amina, S. (2019). Influence of transformational leadership on employees’ innovative work behavior in sustainable organizations: Test of mediation and moderation processes. Sustainability (Switzerland), 11(6). https://doi.org/10.3390/su11061594
Liu, Y., Chen, J., & Han, X. (2023). Research on the influence of employee psychological capital and knowledge sharing on breakthrough innovation performance. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.1084090
Manuti, A., & Giancaspro, M. L. (2019). People make the difference: An explorative study on the relationship between organizational practices, employees’ resources, and organizational behavior enhancing the psychology of sustainability and sustainable development. Sustainability (Switzerland), 11(5). https://doi.org/10.3390/su11051499
Miao, R., Bozionelos, N., Zhou, W., & Newman, A. (2021). High-performance work systems and key employee attitudes: the roles of psychological capital and an interactional justice climate. International Journal of Human Resource Management, 32(2). https://doi.org/10.1080/09585192.2019.1710722
Muhammad, A. (2022). The Mediating Role of Psychological Capital in the Relationship between Transformational Leadership and Job Performance. Pakistan Social Sciences Review, 6(II). https://doi.org/10.35484/pssr.2022(6-ii)68
Odoardi, C., Cangialosi, N., & Battistelli, A. (2022). HR training practices and innovative work behaviour: a moderated mediation model. International Journal of Human Resources Development and Management, 22(1–2). https://doi.org/10.1504/IJHRDM.2022.121320
Qi, L., Liu, B., Wei, X., & Hu, Y. (2019). Impact of inclusive leadership on employee innovative behavior: Perceived organizational support as a mediator. PLoS ONE, 14(2). https://doi.org/10.1371/journal.pone.0212091
Rodríguez-Cifuentes, F., Segura-Camacho, A., García-Ael, C., & Topa, G. (2020). The mediating role of psychological capital between motivational orientations and their organizational consequences. International Journal of Environmental Research and Public Health, 17(13). https://doi.org/10.3390/ijerph17134864
Saeed, B. Bin, Afsar, B., Hafeez, S., Khan, I., Tahir, M., & Afridi, M. A. (2019). Promoting employee’s proenvironmental behavior through green human resource management practices. Corporate Social Responsibility and Environmental Management, 26(2). https://doi.org/10.1002/csr.1694
Schuckert, M., Kim, T. T., Paek, S., & Lee, G. (2018). Motivate to innovate: How authentic and transformational leaders influence employees’ psychological capital and service innovation behavior. International Journal of Contemporary Hospitality Management, 30(2). https://doi.org/10.1108/IJCHM-05-2016-0282
Shah, T. A., Parray, Z. A., & Islam, S. ul. (2023). The empirical relationship between transformational leadership and job attitudes: mediating role of psychological capital – a study of healthcare in India. International Journal of Public Leadership, 19(1). https://doi.org/10.1108/IJPL-07-2022-0042
Slåtten, T., Mutonyi, B. R., & Lien, G. (2020). The impact of individual creativity, psychological capital, and leadership autonomy support on hospital employees’ innovative behaviour. BMC Health Services Research, 20(1). https://doi.org/10.1186/s12913-020-05954-4
Tedla, Aradom, G. (2022). An Essence of Leadership, its Styles: A Review and Personal Account Commentary. International Journal of Health Sciences, 6(S2).
Vilariño del Castillo, D., & Lopez-Zafra, E. (2022). Antecedents of psychological Capital at Work: A Systematic Review of Moderator–mediator Effects and a New Integrative Proposal. In European Management Review (Vol. 19, Issue 1). https://doi.org/10.1111/emre.12460
Yasir, M., & Majid, A. (2020). High-involvement HRM practices and innovative work behavior among production-line workers: mediating role of employee’s functional flexibility. Employee Relations, 42(4). https://doi.org/10.1108/ER-02-2018-0061
Ybema, J. F., van Vuuren, T., & van Dam, K. (2020). HR practices for enhancing sustainable employability: implementation, use, and outcomes. International Journal of Human Resource Management, 31(7), 886–907. https://doi.org/10.1080/09585192.2017.1387865