Can leadership ignite empowered minds? Unlocking the antecedents of employee creativity using a three-wave study

Purpose This study analyzes the relationship between leadership styles (transformational leadership and transactional leadership) and the level of creative behavior displayed by employees. Furthermore, the study also investigates the potential mediating effect of psychological empowerment on the relationship between leadership styles and employee creativity. Design/methodology/approach A three-wave data collection process involving 334 full-time frontline employees from 10 Indian five-star hotels was employed over a time lag of one month. Subsequent analysis of the hypothesized relationships employed structural equation modeling. Findings The findings of this study demonstrate a statistically significant association between both transformational and transactional leadership styles and employee creativity. This analysis further reveals a significant mediating effect of employee psychological empowerment between leadership styles, such as transformational and transactional leadership and employee creativity. Practical implications This study provides several valuable insights for managers seeking to enhance employee creativity. Furthermore, this study suggests that by empowering employees, managers create an environment where individuals feel confident taking risks, experimenting with new ideas and ultimately contributing to a more innovative organization. Originality/value This study contributes to the existing literature by demonstrating a significant and nuanced relationship between transformational leadership, psychological empowerment, and employee creativity within the hotel industry. While prior research has explored these constructs individually, this paper offers novel insights by empirically examining their interconnectedness in a hotel industry context. By highlighting the crucial role of transformational leadership in fostering employee empowerment and subsequently stimulating creative output, this research provides valuable practical implications for hotel managers seeking to enhance innovation and competitiveness.