Leading with paradox: Promoting self‐leadership and positive work behaviours through leader‐member exchange

Abstract This study investigates the role of self‐leadership in mediating the relationship between paradoxical leadership and innovative work behaviour, with emphasis on the moderating impacts of leader‐member exchange (LMX). Study 1 featured 307 service industry employees in a 6‐month longitudinal survey, whereas Study 2 included 288 employees in an experimental design. The results indicate that paradoxical leadership significantly enhances innovation by balancing directive and empowering behaviours, with self‐leadership and high‐quality LMX relationships serving as critical mediators and moderators. Employees demonstrate higher innovation levels when they feel empowered and supported by their leaders. Empowering leaders with paradoxical skills and nurturing strong LMX relationships can spark innovation, boost employee creativity, and fuel a competitive advantage. This study adds compelling empirical support to the leadership and innovation literature regarding the transformative impact of combining seemingly contradictory leadership behaviours to foster an innovative and dynamic organizational culture.