A Conceptual Model: Linking Transformational Leadership to Innovative Work Behaviour via Basic Psychological Needs and Creative Self-Efficacy

Background: Transformational leadership (TL) is essential for enhancing employee innovative work behaviour (IWB) in today’s volatile business environment. Unfortunately, studies reveal mixed results regarding the impact of leadership on IWB and highlight the need to explore serial mediating factors like basic psychological needs (BPN) and creative self-efficacy (CSE) to understand this relationship better. Objective: This study aims to propose a research framework that addresses the need for satisfaction and frustration of Basic Psychological Needs (BPN) and CSE in explaining the association between TL and employee IWB. Methodology: This paper reviewed the existing research articles to propose a new model that includes a serial mediation of BPN and CSE. The reviewed papers focused on the concepts of self-determination (SDT) and self-efficacy theory (SET) and their implementation in organisational innovation studies. Result: The review highlighted the need to examine employees’ BPN satisfaction and frustration and CSE to connect TL and IWB. Conclusion: The proposed serial mediation model highlights how TL can enhance IWB by satisfying employees’ BPN, developing CSE, and fostering a culture of IWB. The proposed model fills the gaps in the literature and offers practical insights for leaders. Unique Contribution: The proposed model contributes to IWB studies by examining both need satisfaction and frustration and adding the role of CSE from SET to further explain the interconnection between TL and IWB. Key Recommendation: Future research should empirically test the model’s validity and examine how organisational culture and climate may affect the relationships proposed, providing insights into how TL drives IWB.