How identity leaders foster team innovation: a multilevel investigation

Purpose This research examines how identity leadership, which is considered a leadership approach that unites members under a shared identity and purpose, influences team innovation. Based on the social identity theory of leadership, we developed a multilevel model that suggests the mediating effects of social identification and team flexibility in the identity leadership-team innovation relationship. Furthermore, we examined the moderating role of leader-member exchange (LMX) ambivalence in this relationship to provide critical insights into the relational dynamics between leadership and innovation. Design/methodology/approach We tested our hypotheses using a sample of 92 managers and 294 employees nested within 92 teams. The multilevel model was analyzed using Mplus. Findings Results indicate that identity leadership fosters team innovation through the dual processes of social identification and team flexibility. However, while team LMX ambivalence dampens the positive effect of team flexibility on innovation, LMX ambivalence does not moderate the relationship between social identification and team innovation. Originality/value This study pioneers the exploration of identity leadership's influence on team innovation through a multilevel framework. Our findings provide valuable insights for organizations and managers seeking to cultivate a shared identity that enhances innovation amidst complex team dynamics.