How transformational leadership facilitates innovation capability: the mediating role of employees' psychological capital

2020 ◽  
Vol 41 (4) ◽  
pp. 481-499 ◽  
Author(s):  
Hui Lei ◽  
Lathong Leaungkhamma ◽  
Phong Ba Le

PurposeThis paper aims to investigate the effects of transformational leadership on individuals and organization’s innovation capability via the mediating role of employees' positive psychological capital (Psy-Cap) namely self-efficacy and optimism.Design/methodology/approachStructural equation modeling (SEM) is used to test proposal hypotheses through the empirical data collected from 330 participants at 90 firms in Vietnam.FindingsThe research findings revealed that self-efficacy and optimism significantly mediate the relationship between transformational leadership and innovation capabilities. In addition, self-efficacy has a greater impact on innovation capabilities compared with the effect of optimism.Practical implicationsThe findings highlight the important role of practicing transformational leadership style to nurture and foster both employees' positive psychology sources and firms' innovation capability.Originality/valueThe paper has significantly advanced and deepened our understanding of how transformational leaders connect with employees to nurture and develop one of the most special aspects of human resource in contemporary working environment called employees' positive Psy-Cap for stimulating firm's innovation capabilities.

2020 ◽  
Vol 12 (3/4) ◽  
pp. 205-222
Author(s):  
Phong Ba Le

PurposeGiven the important role of innovation capability in helping firms to innovate and adapt to a fast-paced and unpredictable environment, the purpose of this study is to investigate and deepen knowledge of how transformational leadership affects radical and incremental innovation via the mediating role of positive psychological capital.Design/methodology/approachThe paper used structural equation modeling and cross-sectional design to test proposal hypotheses based on the empirical data collected from 379 participants in 89 manufacturing and service firms.FindingsThe results of this study revealed the positive and significant influence of transformational leadership on radical and incremental innovation. The findings highlighted the mediating role of individual psychological capital in the relationship between transformational leadership and aspects of innovation capability.Practical implicationsOrganizations should invest and stress on practicing transformational leadership style for their managers/directors to foster and enhance individual psychological capital and innovation capabilities.Originality/valueThe paper has extended theory of innovation management by discussing and highlighting the important role of transformational leadership and psychological capital in fostering specific aspects of innovation namely radical and incremental innovation.


2019 ◽  
Vol 24 (5) ◽  
pp. 420-437 ◽  
Author(s):  
Xiaofen Yu ◽  
Donghua Li ◽  
Chia-Han Tsai ◽  
Chunhsien Wang

Purpose The purpose of this paper is to examine the roles of four distinct but related aspects of psychological capital – optimism, hope, self-efficacy and resilience – in facilitating employee creativity. Drawing on the psychological capital perspective and the creativity literature, we propose that optimism and hope increase employee self-efficacy and resilience, which benefits employee creativity. Moreover, the authors hypothesize that self-efficacy and resilience have mediating roles in the psychological capital context, which, in turn, has a positive effect on individual employees’ creativity. Design/methodology/approach Data were obtained from a survey of multiple manufacturing firms on individual employee psychological capital and creativity. Structural equation modeling was used to test the hypotheses regarding psychological capital and creativity in a sample of 468 individual employees. Findings The results provide evidence that only resilience plays a mediating role between optimism and hope and employee creativity. The authors found that psychological capital is positively related to employee creativity. Practical implications These findings provide guidance for understanding how to better address the psychological capital that contributes to employee creativity in the workplace. Specifically, this study provides a rationale for facilitating the development of employee creativity by exposing the effect and path of psychological capital. Originality/value This study is the first to examine the antecedents and mediating role of four distinct yet correlated dimensions of psychological capital on employee creativity. The findings of this study contribute to the theoretical development of a conceptual model that investigates the black box of the four aspects of psychological capital and creativity.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tu Ngoc Nguyen ◽  
Chao Hong Shen ◽  
Phong Ba Le

PurposeThe purpose of this study is to explore the influence of transformational leadership (TL) on a firm's radical and incremental innovation. It also deepens the understanding of appropriate mechanisms and conditions to improve specific aspects of innovation by examining the mediating role of knowledge management capability (KMC) and moderating mechanism of collaborative culture.Design/methodology/approachThis study utilized structural equation modeling (SEM) and cross-sectional design to test hypotheses in the proposed research model using survey data collected from 365 participants in 86 manufacturing and service firms.FindingsThe findings indicate that TL induces greater effect on radical innovation compared to its effect on incremental innovation. The mediating role of KMC between TL and aspects of innovation capability is also supported. Especially, the influences of KMC on specific aspects of innovation capability are different and depend on the degree of collaborative culture in an organization.Research limitations/implicationsFuture research should examine the mediating mechanisms of knowledge acquisition, knowledge sharing and knowledge application to provide deeper insight into specific roles of knowledge management's constituents in linking TL and innovation capability.Practical implicationsThe paper significantly contributes to increasing the understanding of the link between TL and specific aspects of innovation capability by highlighting the important role of KMC and positive effects of collaborative climate in an organization.Originality/valueThe paper is unique in the attempts to provide a prospective solution for firms to pursue and improve innovation based on the meaningful insights into the mediating role of KMC and moderating effect of collaborative culture in the relationship between TL and specific dimensions of innovation capability.


2016 ◽  
Vol 37 (7) ◽  
pp. 912-935 ◽  
Author(s):  
Xiaofeng Zheng ◽  
Zhiying Liu ◽  
Xiuyuan Gong

Purpose The purpose of this paper is to explore the role leader attention plays in the nurture of transformational leadership (TL) behavior, as well as the mechanism by which TL affects innovation ambidexterity, this research empirically studied the relationship between leader attention scope (LAS) and innovation ambidexterity (exploratory innovation and exploitative innovation) through the mediating role of TL. Further, the moderating effect of environmental dynamism (ED) on the relationship between TL and innovation ambidexterity was examined. Design/methodology/approach Empirical study was adopted by distributing questionnaires to high echelon leaders in mainland China to assess related variables. Structural equation modeling was used to examine the relationships of the variables based on the 188 returned questionnaires. Findings The results show that LAS had a positive effect on innovation ambidexterity, and the relationship was partially mediated by TL. ED negatively moderated the relationship between TL and innovation ambidexterity. Practical implications The results suggest that upper echelon leaders receive more unfamiliar, outward-oriented, and source-diverse information to broaden their attention scope. The broad outlook they get obliges them to engage in TL behavior which is beneficial for innovation ambidexterity. Originality/value Based on upper echelons theory, this research reveals the realization mechanism of innovation ambidexterity from the perspectives of leader attention and leadership behavior. This paper avoids the previous research limitation of prevalently employing demographic measurements to substitute for leaders’ psychological processes. The study of LAS also explains the formation mechanism of TL. ED is considered to examine the effectiveness of TL.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Terje Slåtten ◽  
Gudbrand Lien ◽  
Solveig Beyza Narli Evenstad ◽  
Terje Onshus

Purpose The overall aim of this study is to explore factors associated with academic performance among university students. Specifically, it explores whether a supportive study climate is directly related to academic performance and whether students’ psychological capital (PsyCap), positive emotions and study engagement play a role in the relationship between supportive study climate and academic performance. Design/methodology/approach A total of 588 bachelor students from a range of academic programs participated in a survey. The partial least squares (PLS)-based structural equation modeling (SEM) was used to test the conceptual models and the hypothesized relationships, using the software SmartPLS. Findings No support was found for a direct relationship between supportive study climate and academic performance. However, the results show that PsyCap, positive emotions and study engagement have a mediating role between supportive study climate and academic performance. In addition, the findings reveal a multifaceted pattern among PsyCap, positive emotions and study engagement that promotes academic performance. Originality/value This is the first study that simultaneously explores the role of PsyCap, emotions and study engagement between supportive study climate and academic performance among university students. Consequently, it broadens and deepens previous research and offers both theoretical and practical implications.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Giang Thi Thuy Huynh

PurposeThe study aims to reveal the effects of transformational leadership on nonfamily employee international intrapreneurship with the mediating role of psychological empowerment.Design/methodology/approachThe study sample consists of 379 employees at 132 family export and import firms in Ho Chi Minh City of Vietnam. The data is analyzed by a partial least squares structural equation modeling (PLS-SEM).FindingsThe paper reveals that transformational leadership had a positive and significant influence on nonfamily employee international intrapreneurship. The effect of transformational leadership on international intrapreneurship is strongly mediated by psychological empowerment.Practical implicationsFamily firms would have to form the architecture and mechanisms for supporting the dedication of nonfamily international intrapreneurship actions with transformational leadership and psychological empowerment.Originality/valueThe paper grants the driving mechanism of the transformational leadership on nonfamily employee international intrapreneurship through the mediating role of employee psychological empowerment in the context of family businesses in an emerging market.


2019 ◽  
Vol 48 (3) ◽  
pp. 631-643 ◽  
Author(s):  
Naveed Iqbal Chaudhry ◽  
Iqra Aftab ◽  
Zainab Arif ◽  
Usman Tariq ◽  
Muhammad Azam Roomi

Purpose The purpose of this paper is to explain the relationship between customer-oriented strategy (COS) and financial performance (FP) of firm, to examine the role of supportive human resource management (HRM) in COS implementation and contribution toward FP of firm. It also examines the mediating role of innovation capability (IC) between COS and FP of firm. Design/methodology/approach The approach used for this study is quantitative. Data required for testing of hypothesis were gathered from the managers of manufacturing firms of Gujranwala, Pakistan. To conduct the data analysis, structural equation modeling was used. Findings Findings of this study showed that there is significantly positive relation between COS and FP with the significant positive mediating effects of supportive HRM and IC. Research limitations/implications This research has been conducted in manufacturing sector only. So, it is suggested to future researchers to carry out this research in other sectors. Second, this research focused only on IC but there are many other organizational capabilities (OC) that can be used. Practical implications This research would be helpful for all firms adopting COS to understand that how to mobilize their HR to accomplish the purpose of strategy. It will enable manufacturing firms to understand and work on IC. Originality/value This study is anticipated to add value to the existing literature of strategy process and OC. This study is one of the first to examine IC as mediator between COS and organizational FP so it opens new areas for research.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neuza Ribeiro ◽  
Manish Gupta ◽  
Daniel Gomes ◽  
Nelia Alexandre

Purpose The purpose of this study is to examine the mediating role of affective well-being (AWB) in the relationship between psychological capital (PsyCap) and affective commitment. Design/methodology/approach The sample included 226 employees from diverse Portuguese organizations. Based on a survey, respondents reported their perceptions of own PsyCap, AWB and affective commitment to their organization. Findings Results from structural equation modeling suggested presence of mediation by AWB in the relationship between PsyCap and affective commitment. Practical implications Managers are encouraged to gain from this finding by emphasizing more on the emotional health of individuals to increase their attachment with the company. Originality/value Though there are several studies indicating the positive consequences of PsyCap on employees, studies on how PsyCap affects affective commitment through AWB is scarce. These results advance the broaden-and-build theory by suggesting that the relationship between PsyCap and affective commitment is much more complex.


2017 ◽  
Vol 36 (7) ◽  
pp. 973-983 ◽  
Author(s):  
Manish Gupta ◽  
Musarrat Shaheen ◽  
Prathap K. Reddy

Purpose The purpose of this paper is to examine the mediating role of work engagement (WE) between psychological capital (PsyCap) and the two facets of organizational citizenship behavior (OCB) which involves both individual and organization. It also examines the moderating role of perceived organizational support (POS) between PsyCap and WE, and WE and the two facets of OCB. Design/methodology/approach A total of 293 responses gathered from employees working in diverse service sector industries in India were assessed using structural equation modeling. Findings Overall, the results support the mediating role of WE in the PsyCap-OCB relationship, and the moderation of POS between WE and the two facets of OCB. Research limitations/implications This study helps in understanding how WE-OCB relationship can be negatively affected in the presence of high POS. Practical implications The results encourage organizations to establish systems for enhancing the engagement levels of their employees, which according to this study may be achieved by creating and maintaining vibrant work environment. Originality/value This study helps in understanding the role of POS among PsyCap, WE, \and the two factors of OCB.


2018 ◽  
Vol 37 (3) ◽  
pp. 271-284 ◽  
Author(s):  
Imen Keskes ◽  
Jose M. Sallan ◽  
Pep Simo ◽  
Vicenc Fernandez

Purpose The purpose of this paper is to propose and to test three models in order to examine the mechanisms through which dimensions of transformational leadership influence different forms of organizational commitment by testing the possible mediating role of leader-member exchange (LMX) dimensions. Design/methodology/approach The participants in this study are represented by 427 senior executive French employees having a university degree and minimum two years of work experience in their current organization. The relationships between different variables were analyzed using structural equation modeling. Findings The results indicate that the dimensions of LMX mediated the relationships between the dimensions of transformational leadership and organizational commitment dimensions. The contribution dimension of LMX acts as a consequence, rather than an antecedent of commitment. These findings are important since they may serve as a bind between leadership dimensions and the kind of organizational commitment that each of these dimensions can generate in followers. Originality/value To the authors’ knowledge, this is the first empirical study that tests the interaction of transformational leadership and LMX on organizational commitment in a French context. The originality of this work leads on investigating these three concepts as multidimensional constructs and focusing on the mediating role of LMX in the relationship between dimensions of transformational leadership and different forms of organizational commitment which can be considered as a novelty in the field of research in this area. As a result, this study addresses concerns about that lack of academic research on the mechanisms by which transformational leaders influence the organizational commitment of their followers.


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