Innovative work behavior and organizational leadership in the context of intellectual capital: a study in the Estonian engineering industry

Purpose The purpose of this study is to determine how innovative work behavior (IWB) and organizational leadership (OL) influence each other in light of IC flows and examine how OL mediating IWB influences organizational performance. Design/methodology/approach The research subjects are eleven Estonian mechanical engineering companies. The data for the study were collected using the organizational leadership capability, organizational performance and innovative work behavior questionnaires with a final sample of 175 engineers as respondents. The research analysis is based on a quantitative statistical evaluation of the research data. Findings Human capital with its IWB generates structural capital in light of OL, while in turn, OL fosters the IWB of individuals. Ultimately, OL fully mediates employee IWB to influence organizational performance. Originality/value This is the empirical study to discuss the interrelationship between OL and IWB. In contrast to previous studies, which mainly discuss innovation as an outcome of intellectual capital, this paper regards IWB as an input for the generation of structural capital in terms of OL.