HOW TRANSFORMATIONAL LEADERSHIP INFLUENCES INNOVATIVE BEHAVIOR: THE MEDIATING ROLE OF PSYCHOLOGICAL EMPOWERMENT AND PROACTIVITY OF EMPLOYEES

This research aims to examine the impact of transformational leadership on innovative behaviour of employees within the organization. It draws on conservation of resources theory and examines when and how transformational leadership style relates to innovative behaviour of employees. The study proposes a sequential mediation effect of psychological empowerment and proactivity of employees that predicts innovative behaviour among employees. The data of 230 employees is collected from large public sector organizations, from employees and their managers by utilizing three-wave time lagged study design. The results of the study were obtained using PROCESS macro by Hayes via 2000 resample bias corrected (BC) bootstrap method. The findings not only validate the applicability of psychological empowerment and proactivity for innovative behaviour but also found these as mediators between transformational leadership and innovative behaviour relationship. Theoretical and practical implications are also discussed in light of the findings.