Interplay between leadership style and innovative work behavior: mediated by innovation-oriented people management

Purpose This study aims to investigate how transformational leadership (TL) and innovation-oriented leadership (IOL) influence innovative work behavior (IWB), with innovation-oriented people management (IOPM) serving as a mediating mechanism. It offers a novel dual-path framework to understand the structural and psychological dynamics through which leadership drives innovation. Design/methodology/approach A quantitative cross-sectional survey was conducted among 158 employees across innovation-active organizations in Singapore, including sectors such as ICT, manufacturing, construction and retail. Structural Equation Modeling (SEM) and Process Macro (Model 4) with bootstrapping were employed to analyze both direct and indirect effects. Findings The dual-path model offers superior predictive power, because both TL and IOL significantly enhance IWB, but through distinct mechanisms. TL operates more autonomously via intrinsic motivation, whereas IOL relies heavily on structured human resource (HR) systems (IOPM). IOPM partially mediates the relationship between both leadership styles and IWB, with a stronger mediating effect observed in the IOL–IWB pathway (51.94%) compared to TL–IWB (26.42%). Research limitations/implications The study is limited by its cross-sectional design, reliance on self-reported data and geographic focus on Singapore. Future research should apply longitudinal, multi-source designs and include additional leadership styles and control variables to improve generalizability. Practical implications Organizations should align leadership strategies with their structural contexts. TL may be more effective in hierarchical or resource-constrained settings, whereas IOL requires supportive HR infrastructures. Policymakers and HR leaders can use these insights to tailor leadership development and innovation-support systems by sector. Social implications This study highlights the critical role of leadership–HR alignment in shaping workplace innovation and employee empowerment. By clarifying how transformational and innovation-oriented leadership styles foster innovative work behavior, it contributes to building inclusive, participatory and psychologically safe work environments. The findings support broader social objectives of employee well-being, equity in idea contribution and sustainable organizational learning. Moreover, the emphasis on innovation-oriented people management systems offers pathways to enhance workforce adaptability and engagement in the digital age. These insights can inform social policies aimed at fostering human capital development and inclusive innovation across sectors and demographic groups. Originality/value This study introduces an integrated dual-pathway model that distinguishes how transformational and innovation-oriented leadership uniquely influence IWB through IOPM. IOPM is conceptualized as a synthesized construct grounded in validated innovation-supportive HR practices, including autonomy, developmental feedback, innovation climate and collaboration. It empirically demonstrates the differential dependence of each leadership style on HR systems – revealing TL’s HR-independence and IOL’s HR-dependence. By bridging leadership theory, social exchange theory, dynamic capabilities and strategic human resource management, this research advances the understanding of structural and psychological enablers of innovation. The study offers a configurational perspective linking leadership intent to HR infrastructure, yielding practical strategies for tailoring leadership-HR alignment across organizational and sectoral contexts.