Transformational leadership and service innovation performance: the role of knowledge sharing and innovation culture in the hospitality sector employees

Abstract

This research examines how Indian hotels can systematically create “wow” moments for guests by translating transformational leadership (TL) into frontline employees’ service innovation performance (SIP) rather than treating innovation as ad hoc or leader‑driven in a vacuum. Drawing on social exchange theory, organizational learning theory, and the job demands–resources (JD–R) model, we develop and test a conditional process model in which TL shapes SIP through two distinct yet complementary mechanisms: knowledge sharing (KS) as a proximal learning behaviour and innovation culture (IC) as a deeper normative infrastructure, while psychological safety (PS) functions as a contextual resource that regulates how strongly these pathways operate. Survey data from 492 frontline employees in Indian hotels and resorts were analyzed using covariance‑based structural equation modeling (AMOS 29) and bootstrapped conditional process analysis (SPSS 29). The results indicated that TL is linked to SIP through its relationship with KS and IC, and KS emerged as the stronger conduit. Moreover, PS strengthens the direct TL–SIP link once a minimum safety threshold is reached and simultaneously attenuates the TL → KS → SIP and TL → IC → SIP pathways, potentially reducing employees’ dependence on leader-driven KS mechanisms while enabling the translation of leader-driven cultural norms into SIP. These findings extend existing leadership–innovation theory in hospitality by distinguishing behavioural and cultural routes from TL to SIP, which are most consequential for SIP when PS acts as a booster vs a contextual ceiling, offering actionable guidance on how hospitality practitioners can align leadership development, knowledge systems, and PS‑building practices to achieve sustained, perceptible innovation outcomes.