Transformational leadership with innovative behaviour: examining multiple mediating paths with PLS-SEM

Purpose: The purpose of this paper is to examine simultaneously multiple mediating mechanisms through which transformational leadership affects innovative work behaviour (IWB). Specifically, the authors test job autonomy, affective commitment and supportive management as the three mediating paths through which transformational leadership predicts innovative wok behaviour.

Design/methodology/approach: Data were collected from 358 employees working in large retail banks in Accra, the capital of Ghana. A partial least squares structural equation modelling technique was used to estimate the measurement and structural models.

Findings: Job autonomy and supportive management rather than affective commitment mediated the relationship between transformational leadership and IWB. In addition, transformational leadership positively relates to job autonomy, affective commitment, supportive management and IWB.

Practical implications: By adopting leadership behaviours that seek to offer employees freedom on the job, a feeling of attachment to the organisation and positive perception of leadership support, managers and HR professionals can potentially foster employee innovation. This could stimulate organisational innovation and business success in the financial sector.

Originality/value: Although it is important to understand the mechanisms or processes through which transformational leadership behaviour promotes IWB, research in this area is scanty and scarce. This study theorises and empirically examines job autonomy and support management as novel mechanisms through which transformational leadership behaviour translates into workers’ innovative behaviour in formal banking institutions.