research-article

Impact of Entrepreneurial Leadership on Employee's Innovative Behavior: Mediating role of Psychological Empowerment

Authors:

Muhammad Shahid Mehmood,

Sher Zaman KhanAuthors Info & Claims

ICMSS 2019: Proceedings of the 2019 3rd International Conference on Management Engineering, Software Engineering and Service Sciences

Pages 223 - 229

https://doi.org/10.1145/3312662.3312701

Published: 12 January 2019 Publication History

Abstract

This study explores the impact of entrepreneurial leadership (EL) toward employees' innovative behavior (IB) along with the mediating role of psychological empowerment (PE). The data were collected using a random distribution of the surveys among 301 managers and employees within small and medium-sized enterprises (SMEs) in Pakistan. The integrated model developed to highlight the direct and indirect relationship between EL and IB with intervening influence of PE. The questionnaire was divided into two sections such as managerial level and employee's level. Structure equation modeling analysis technique is majorly employed to calculate the proposed relationships by means of descriptive statistics, discriminate validity, and Pearson's correlation analysis techniques. The findings revealed that EL has a direct impact on IB and an indirect impact on IB through PE, respectively. Furthermore, this study promotes insightful information regarding IB of employees, EL, and PE relationships. Based on such findings, theoretical and managerial implications are reported.

References

[1]

S. Campo, A. M. Díaz, and M. J. Yagüe. 2014. Hotel innovation and performance in times of crisis. International Journal of Contemporary Hospitality Management, vol. 26, pp. 1292--1311, 2014.

[2]

C. A. Bayraktar, G. Hancerliogullari, B. Cetinguc, and F. Calisir. 2017. Competitive strategies, innovation, and firm performance: an empirical study in a developing economy environment. Technology Analysis & Strategic Management, vol. 29, pp. 38--52, 2017.

[3]

D. Jaiswal and R. L. Dhar. 2017. Impact of human resources practices on employee creativity in the hotel industry: The impact of job autonomy. Journal of Human Resources in Hospitality & Tourism, vol. 16, pp. 1--21, 2017.

[4]

W.-J. Chen. 2011. Innovation in hotel services: Culture and personality. International Journal of Hospitality Management, vol. 30, pp. 64--72, 2011.

[5]

T. T. Kim and G. Lee. 2013. Hospitality employee knowledge-sharing behaviors in the relationship between goal orientations and service innovative behavior. International Journal of Hospitality Management, vol. 34, pp. 324--337, 2013.

[6]

T. Akram, S. Lei, and M. J. Haider. 2016. The impact of relational leadership on employee innovative work behavior in IT industry of China. Arab Economic and Business Journal, vol. 11, pp. 153--161, 2016.

[7]

X. Wang and M. Dass. 2017. Building innovation capability: The role of top management innovativeness and relative-exploration orientation. Journal of Business Research, vol. 76, pp. 127--135, 2017.

[8]

C. Axtell, D. Holman, and T. Wall. 2006. Promoting innovation: A change study. Journal of Occupational and Organizational Psychology, vol. 79, pp. 509--516, 2006.

[9]

W. Omri. 2015. Innovative behavior and venture performance of SMEs: The moderating effect of environmental dynamism. European Journal of Innovation Management, vol. 18, pp. 195--217, 2015.

[10]

M. A. West, G. Hirst, A. Richter, and H. Shipton. 2004. Twelve steps to heaven: Successfully managing change through developing innovative teams. European journal of work and organizational psychology, vol. 13, pp. 269--299, 2004.

[11]

S. G. Scott and R. A. Bruce. 1994. Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of management journal, vol. 37, pp. 580--607, 1994.

[12]

F. Montani, F. Courcy, and C. Vandenberghe. 2017. Innovating under stress: The role of commitment and leader-member exchange. Journal of Business Research, vol. 77, pp. 1--13, 2017.

[13]

C. Li, H. Zhao, and T. M. Begley. 2015. Transformational leadership dimensions and employee creativity in China: A cross-level analysis. Journal of Business Research, vol. 68, pp. 1149--1156, 2015.

[14]

A. N. Pieterse, D. Van Knippenberg, M. Schippers, and D. Stam. 2010. Transformational and transactional leadership and innovative behavior: The moderating role of psychological empowerment. Journal of organizational behavior, vol. 31, pp. 609--623, 2010.

[15]

Q. Miao, A. Newman, G. Schwarz, and B. Cooper. 2018. How Leadership and Public Service Motivation Enhance Innovative Behavior. Public Administration Review, vol. 78, pp. 71--81, 2018.

[16]

X. Huang, J. Iun, A. Liu, and Y. Gong. 2010. Does participative leadership enhance work performance by inducing empowerment or trust? The differential effects on managerial and non-managerial subordinates. Journal of Organizational Behavior, vol. 31, pp. 122--143, 2010.

[17]

R. L. Dhar. 2016. Ethical leadership and its impact on service innovative behavior: The role of LMX and job autonomy. Tourism Management, vol. 57, pp. 139--148, 2016.

[18]

S. Braun, C. Peus, S. Weisweiler, and D. Frey. 2013. Transformational leadership, job satisfaction, and team performance: A multilevel mediation model of trust. The Leadership Quarterly, vol. 24, pp. 270--283, 2013.

[19]

L. W. Fernald, G. T. Solomon, and A. Tarabishy. 2005. A new paradigm: Entrepreneurial leadership.Southern business review, vol. 30, pp. 1--10, 2005.

[20]

M. Renko, A. El Tarabishy, A. L. Carsrud, and M. Brännback. 2015. Understanding and measuring entrepreneurial leadership style. Journal of Small Business Management, vol. 53, pp. 54--74, 2015.

[21]

G. M. Spreitzer. 1995. Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of management Journal, vol. 38, pp. 1442--1465, 1995.

[22]

D. Van Knippenberg, B. Van Knippenberg, D. De Cremer, and M. A. Hogg. 2004. Leadership, self, and identity: A review and research agenda. The Leadership Quarterly, vol. 15, pp. 825--856, 2004.

[23]

Y. Chen, B. Liu, L. Zhang, and S. Qian. 2018. Can leader "humility" spark employee "proactivity"? The mediating role of psychological empowerment. Leadership & Organization Development Journal, vol. 39, pp. 326--339, 2018.

[24]

I. Ahmad and Y. Gao. 2018. Ethical leadership and work engagement: The roles of psychological empowerment and power distance orientation. Management Decision, 2018.

[25]

B.-K. Joo and S. J. Jo. 2017. The effects of perceived authentic leadership and core self-evaluations on organizational citizenship behavior: The role of psychological empowerment as a partial mediator. Leadership & Organization Development Journal, vol. 38, pp. 463--481, 2017.

[26]

K. W. Thomas and B. A. Velthouse. 1990. Cognitive elements of empowerment: An "interpretive" model of intrinsic task motivation. Academy of management review, vol. 15, pp. 666--681, 1990.

[27]

M. Sundararajan, B. Sundararajan, and S. Henderson. 2012. Role of meditative foundation entrepreneurial leadership and new venture success. Journal of Spirituality, Leadership and Management, vol. 6, p. 59, 2012.

[28]

C. C. Cogliser and K. H. Brigham. 2004. The intersection of leadership and entrepreneurship: Mutual lessons to be learned. The Leadership Quarterly, vol. 15, pp. 771--799, 2004.

[29]

G. Surie and A. Ashley. 2008. Integrating pragmatism and ethics in entrepreneurial leadership for sustainable value creation. Journal of Business Ethics, vol. 81, pp. 235--246, 2008.

[30]

V. Gupta, I. C. MacMillan, and G. Surie. 2004. Entrepreneurial leadership: developing and measuring a cross-cultural construct. Journal of business venturing, vol. 19, pp. 241--260, 2004.

[31]

M. Thurlings, A. T. Evers, and M. Vermeulen. Toward a model of explaining teachers' innovative behavior: A literature review. 2015. Review of Educational Research, vol. 85, pp. 430--471, 2015.

[32]

R. F. Kleysen and C. T. Street. 2001. Towards a multi-dimensional measure of individual innovative behavior.Journal of intellectual Capital, vol. 2, pp. 284--296, 2001.

[33]

M. J. Xerri and Y. Brunetto. 2013. Fostering innovative behavior: The importance of employee commitment and organizational citizenship behavior. The International Journal of Human Resource Management, vol. 24, pp. 3163--3177, 2013.

[34]

O. Janssen. 2000. Job demands, perceptions of effort-reward fairness and innovative work behavior. Journal of Occupational and organizational psychology, vol. 73, pp. 287--302, 2000.

[35]

A. Oke, N. Munshi, and F. O. Walumbwa. 2009. The influence of leadership on innovation processes and activities. Organizational Dynamics, vol. 38, pp. 64--72, 2009.

[36]

Y. Chen, G. Tang, J. Jin, Q. Xie, and J. Li. 2014. CEO s' Transformational Leadership and Product Innovation Performance: The Roles of Corporate Entrepreneurship and Technology Orientation. Journal of Product Innovation Management, vol. 31, pp. 2--17, 2014.

[37]

J. H. Kang, G. T. Solomon, and D. Y. Choi. 2015. "CEOs' leadership styles and managers' innovative behaviour: Investigation of intervening effects in an entrepreneurial context. Journal of Management Studies, vol. 52, pp. 531--554, 2015.

[38]

N. Thornberry. 2006. Lead like an entrepreneur: Keeping the entrepreneurial spirit alive within the corporation. ed: McGraw Hill Fairfield, PA, 2006.

[39]

M. Y. Kim, S. M. Park, and Q. Miao. 2017. Entrepreneurial leadership and organizational innovation: Improving attitudes and behaviors of Chinese public employees.in Public Service Innovations in China, ed: Springer, 2017, pp. 151--184.

[40]

C. M. Leitch, C. McMullan, and R. T. Harrison. 2013. The development of entrepreneurial leadership: The role of human, social and institutional capital. British Journal of Management, vol. 24, pp. 347--366, 2013.

[41]

A. Bandura. 1986. Social foundations of thought and action. Englewood Cliffs, NJ, vol. 1986, 1986.

[42]

M. S. Cardon, J. Wincent, J. Singh, and M. Drnovsek. 2009. The nature and experience of entrepreneurial passion. Academy of management Review, vol. 34, pp. 511--532, 2009.

[43]

L. Hu, J. H. Park, C. Wu, and A. Hooke. 2014. Entrepreneurial Leadership and Innovativeness: The Mediating Role of Team Psychological Safety. Academy of Management Proceedings, 2014, p. 12470.

[44]

A. Bagheri and M. Akbari. 2018. The Impact of Entrepreneurial Leadership on Nurses' Innovation Behavior. Journal of Nursing Scholarship, vol. 50, pp. 28--35, 2018.

[45]

F. Damanpour and M. Schneider. 2008. Characteristics of innovation and innovation adoption in public organizations: Assessing the role of managers. Journal of public administration research and theory, vol. 19, pp. 495--522, 2008.

[46]

J. Zhou. 1998. Feedback valence, feedback style, task autonomy, and achievement orientation: Interactive effects on creative performance. Journal of applied psychology, vol. 83, p. 261, 1998.

[47]

A. Bandura. 1977. Self-efficacy: toward a unifying theory of behavioral change. Psychological review, vol. 84, p. 191, 1977.

[48]

S. Ohly, S. Sonnentag, and F. Pluntke. 2006. Routinization, work characteristics and their relationships with creative and proactive behaviors. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, vol. 27, pp. 257--279, 2006.

[49]

J. P. De Jong and R. Kemp. 2003. Determinants of co-workers' innovative behaviour: An investigation into knowledge intensive services. International Journal of Innovation Management, vol. 7, pp. 189--212, 2003.

[50]

M. Singh and A. Sarkar. 2012. The relationship between psychological empowerment and innovative behavior. Journal of Personnel Psychology, 2012.

[51]

S. E. Seibert, G. Wang, and S. H. Court right. 2011. Antecedents and consequences of psychological and team empowerment in organizations: a meta-analytic review. Journal of applied psychology, vol. 96, p. 981, 2011.

[52]

X. Zhang and K. M. Bartol. 2010. Linking empowering leadership and employee creativity: The influence of psychological empowerment, intrinsic motivation, and creative process engagement. Academy of management journal, vol. 53, pp. 107--128, 2010.

[53]

C. C. Schermuly, B. Meyer, and L. Dämmer. 2013. Leader-member exchange and innovative behavior. Journal of Personnel Psychology, 2013.

[54]

J. F. Hair, R. E. Anderson, R. L. Tatham, and W. C. Black. Multivariate data analysis. 1998. Upper Saddle River, 1998.

[55]

J. Nunnally. Psychometric methods.ed: New York: McGraw-Hill, 1978.

[56]

C. Fornell and D. F. Larcker. 1981. Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of marketing research, pp. 382--388, 1981.

[57]

A. Newman, H. Herman, G. Schwarz, and I. Nielsen. The effects of employees' creative self-efficacy on innovative behavior: The role of entrepreneurial leadership. Journal of Business Research, vol. 89, pp. 1--9, 2018.

[58]

A. Bandura. Social learning theory of aggression. Journal of communication, vol. 28, pp. 12--29, 1978.

Cited By

‎ HTriatmanto BSupriadi B(2024)Entrepreneurial Orientation and Entrepreneurial Leadership Influence on Performance Through Individual CompetenceKnE Social Sciences10.18502/kss.v9i28.17189Online publication date: 10-Oct-2024
https://doi.org/10.18502/kss.v9i28.17189
Dongxian LBatool H(2024)Influence of distributed leadership on employee innovative behaviour: the mediating role of psychological empowermentJournal of Innovation and Entrepreneurship10.1186/s13731-024-00448-713:1Online publication date: 4-Nov-2024
https://doi.org/10.1186/s13731-024-00448-7
Alameeri KAlshurideh MAl Kurdi B(2023)A Systematic Review on the Influence of Entrepreneurial Leadership on Social Capital and Change PropensityThe Effect of Information Technology on Business and Marketing Intelligence Systems10.1007/978-3-031-12382-5_81(1473-1486)Online publication date: 9-Feb-2023
https://doi.org/10.1007/978-3-031-12382-5_81

Index Terms

Impact of Entrepreneurial Leadership on Employee's Innovative Behavior: Mediating role of Psychological Empowerment
1. Social and professional topics
  1. User characteristics
    1. Geographic characteristics

Recommendations

The influence of entrepreneurial leadership on organisational innovation: mediating role of innovation climate

Organisational innovation has been a widely studied area by diverse experts across the world because of its immense significance for firm's performance in order to achieve a competitive advantage. However, entrepreneurial leadership (EL) is an emerging ...
The Impact of Traditional Paternalistic Leadership on Employees' Innovative Behavior in the Digital Era
IMMS '24: Proceedings of the 2024 7th International Conference on Information Management and Management Science

Drawing on social cognitive theory and social exchange theory, we introduced innovation self-efficacy as a mediating variable and constructed a mediation model moderated by the organizational innovation climate. We explore the role and mechanism of ...
Entrepreneurial Resources, Organizational Choices, and Competitive Outcomes

This paper examines the link between a firm's resources and its efficient organization form with a focus on entrepreneurial resources. Entrepreneurial resources are defined as the propensity of an individual to behave creatively, act with foresight, use ...

Comments

Please enable JavaScript to view thecomments powered by Disqus.

Information & Contributors

Information

Published In

cover image ACM Other conferences

ICMSS 2019: Proceedings of the 2019 3rd International Conference on Management Engineering, Software Engineering and Service Sciences

January 2019

292 pages

ISBN:9781450361897

DOI:10.1145/3312662

Copyright © 2019 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

In-Cooperation

China University of Geosciences

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 12 January 2019

Permissions

Request permissions for this article.

Request Permissions

Check for updates

Author Tags

Qualifiers

Research-article
Research
Refereed limited

Conference

ICMSS 2019

ICMSS 2019: 2019 3rd International Conference on Management Engineering, Software Engineering and Service Sciences

January 12 - 14, 2019

Wuhan, China

Contributors

Other Metrics

View Article Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

3
Total Citations
View Citations
310
Total Downloads

Downloads (Last 12 months)28
Downloads (Last 6 weeks)6

Reflects downloads up to 30 Nov 2024

Other Metrics

View Author Metrics

Citations

Cited By

‎ HTriatmanto BSupriadi B(2024)Entrepreneurial Orientation and Entrepreneurial Leadership Influence on Performance Through Individual CompetenceKnE Social Sciences10.18502/kss.v9i28.17189Online publication date: 10-Oct-2024
https://doi.org/10.18502/kss.v9i28.17189
Dongxian LBatool H(2024)Influence of distributed leadership on employee innovative behaviour: the mediating role of psychological empowermentJournal of Innovation and Entrepreneurship10.1186/s13731-024-00448-713:1Online publication date: 4-Nov-2024
https://doi.org/10.1186/s13731-024-00448-7
Alameeri KAlshurideh MAl Kurdi B(2023)A Systematic Review on the Influence of Entrepreneurial Leadership on Social Capital and Change PropensityThe Effect of Information Technology on Business and Marketing Intelligence Systems10.1007/978-3-031-12382-5_81(1473-1486)Online publication date: 9-Feb-2023
https://doi.org/10.1007/978-3-031-12382-5_81

View Options

Login options

Check if you have access through your login credentials or your institution to get full access on this article.

Full Access

Get this Publication

View options

PDF

View or Download as a PDF file.

eReader

View online with eReader.

Media

Figures

Other

Tables

View Table of Contents