Unpacking the role of transformational leadership and work engagement in the relationship between psychological capital and innovative work behavior

Purpose This study aims to determine the effect of psychological capital (PsyCap) on innovative work behavior (IWB) by incorporating the mediating role of work engagement and examine the moderating role of transformational leadership in the relationship between PsyCap and IWB. Design/methodology/approach Using a correlational design, this research involved 270 nurses from seven public hospitals across Iraq, selected through purposive sampling. Data analysis was conducted using partial least squares structural equation modeling (SmartPLS 3). Findings The distinctness of the variables used in this study was confirmed by confirmatory factor analysis. The findings show that a PsyCap had a positive influence on IWB directly and indirectly through the mediating of work engagement, and transformational leadership positively moderates the relationship between a PsyCap and IWB in such a way that with high transformational leadership behavior, the relationship will be strengthened. Originality/value By focusing on Iraqi nurses, this study not only contributes to the existing literature on PsyCap and IWB but also underscores the unique contextual challenges faced by health-care professionals in conflict-affected areas. The findings emphasize the importance of nurturing leadership qualities to foster a resilient and innovative nursing workforce in such settings.