Unlocking innovation in Indonesia’s electricity sector: the role of transformational leadership, knowledge sharing, and psychological empowerment

Purpose This study aims to investigate the role of knowledge-sharing behavior (KSB) and psychological empowerment (PE) as mediators between transformational leadership (TL) and innovative work behavior (IWB). Design/methodology/approach Data was collected from 473 middle managers in the Indonesian electricity sector using a survey design. AMOS was used to perform structural equation modelling for data analysis. Findings KSB and PE were found to mediate the indirect influence of TL and IWB entirely. Directly, TL has a substantial positive impact on KSB and PE but not on IWB. Research limitations/implications This study analyzes conceptual models concerning hypothesis testing by analyzing cross-sectional data in Indonesia’s electricity sector. Future research may include longitudinal studies conducted in various cultural contexts, including small and medium-sized businesses, health organizations and education. Practical implications To improve employees’ PE and use KSB to increase their IWB, the organization must offer training and other development programs to enhance their competencies. In addition, managers must facilitate employees’ transformation of ideas into innovations that can be implemented in the workplace. Originality/value This study provides new insights into the electricity sector by integrating the concepts of TL, KSB, PE and IWB into a single framework, particularly in the context of developing nations. The originality of this study also lies in its robust methodological approach, where data were collected from 473 middle managers in the Indonesian electricity sector—a unique setting characterized by a monopolistic structure.