Study of Pakistan manufacturing workers shows entrepreneurial leadership is the key to developing creativity
Purpose The main was to investigate the effect of entrepreneurial leadership on employee creativity and the mediating influence of psychological empowerment and psychological safety. Design/methodology/approach Data were collected from the manufacturing sector in Pakistan, including textile, chemical and automobile industries. Questionnaires had three parts, one for managers and two for employees. The researchers collected data in three phases with a one-month time interval. First, employees rated statements about entrepreneurial leadership behaviours. Then, employees rated statements about psychological empowerment and psychological safety. Finally, managers rated statements related to employees’ creativity. The final sample comprised of 54 leaders and 280 employees. Findings Results showed that entrepreneurial leadership inspired employee creativity. In addition, psychological empowerment and psychological safety mediated the relationship between entrepreneurial leadership and employee creativity. Originality/value The study has practical implications. Organizations should hire managers with the entrepreneurial skills to inspire creativity. Leaders should also stress the value of the employee’s work by sharing organisational goals, as well as directing employees when tasks are complex. Meanwhile, organizations need to develop training programmes to help managers to improve their leadership skills. Entrepreneurial leaders can inspire employees by modelling behaviours, which will be psychologically empowering and ensure employees feel secure enough to be creative.