Purpose
The purpose of this study is to empirically examine the association between transformational leadership and employee acceptance to change while establishing the mediating effects of innovative behaviour and the moderating effect of the use of information technology (IT) on this association.
Design/methodology/approach
In total, 378 employees of ten banks from Uttarakhand, India, participated in a questionnaire-based survey. The proposed hypotheses and the proposed conceptual model were tested using macro process (Hayes, 2013).
Findings
The results indicated that there exists a positive association between transformational leadership and employee acceptance to change. Furthermore, it was found that this association was mediated by employee innovative behaviour and moderated by the use of IT.
Practical implications
The findings of this study will help managers to comprehend the significance of the innovative behaviour of employees in moulding their acceptance towards change. This paper should encourage bank managers to perceive the significance of the working practice and the infusion of IT. Furthermore, this study accentuates the significance of an effective leadership style, i.e. transformational leadership, as an essential phenomenon to positively impinge on employee acceptance to change in a service-oriented industry, namely banking.
Originality/value
The present study enriches the extant research on transformational leadership and employee acceptance to change by demonstrating the use of IT and innovative behaviour as vital and the important factors that influence the level of persuasion that transformational leadership has on employee acceptance to change.
Mediating Effects of Organizational Equity and Teachers' Empowerment in the Relationship between School Principals' Transformational Leadership and Organizational Effectiveness