The Impact of Authentic Leadership on Employees' Innovative Behavior with the Mediating Role of Psychological Capital

Purpose: This study examines the effect of authentic leadership on employees' innovative behavior, reviewing the mediating role of psychological capital. While the relationship between leadership and innovation is well established, the purpose of this research is to clarify the specific psychological system through which authentic leadership enhances innovative performance. Methodology: A descriptive-correlational method was used to collect data from 210 employees working in a pharmaceutical company in Tehran. The research employed PLS-SEM and CFA to examine the relationships between authentic leadership, psychological capital, and innovation, utilizing well-established questionnaires. Findings: The results indicate that authentic leadership has a positive influence on innovation. Psychological capital—comprising hope, confidence, optimism, and resilience—was also found to be a strong link in this relationship. Genuine leaders appear to cultivate psychological strength within their teams, which helps drive innovation. Originality/Value: This study offers a new perspective by demonstrating how inner psychological resources facilitate the connection between leadership and innovation. It offers valuable insights for managers seeking to cultivate innovative and inclusive cultures by investing in their people and fostering genuine leadership.