Transformational leadership, employee innovative behavior and innovation climate

Abstract

Drawing on Leader–Member Exchange Theory and Social Exchange Theory, this study examines how transformational leadership (TFL) characteristics (articulate vision, moral modeling, charisma and individual consideration) influence organizational trust (OT) and knowledge sharing (KS), and how these, in turn, affect employee innovative behavior (EIB). Innovation climate (IC) is included as a moderator between OT, KS and EIB. Data were gathered from 335 individuals employed within China's beverage sector. Subsequently, Partial Least Squares Structural Equation Modeling and fuzzy set Qualitative Comparative Analysis were performed as the data analysis method on the data gathered. The results indicate that articulate vision, moral modeling, charisma and individual consideration positively influence OT and KS, which in turn predict EIB. Moreover, IC was found to moderate the relationship, strengthening the effect of OT on EIB. Asymmetrical relationships were observed in the effects of TFL, such that high levels of OT, KS and EIB generally required the combined presence of more than two TFL characteristics. While TFL and EIB have been extensively examined in organizational contexts, the integration of TFL characteristics, OT and KS in explaining EIB remains limited. This study fills the gap by validating a framework that links TFL characteristics, OT, KS and EIB through a dual-analytical approach. Besides, as IC has often been studied as an antecedent of EIB rather than as a moderator, this research enhances knowledge by illustrating how IC influences the relationship among OT, KS and EIB.