Authentic leadership and organizational innovation: a review of developmental pathways and future research directions

Purpose This study systematically reviews the impact of authentic leadership on organizational innovation, focusing on its conceptualization, effects and underlying mechanisms. It addresses research gaps by exploring intercorrelations and contextual variations, guiding future studies and practical strategies to enhance innovation in organizational settings. Design/methodology/approach This study employs a systematic literature review, utilizing the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) protocol for data collection process. The study applies Theory-Context-Characteristic-Method (TCCM) framework to examine the impact of authentic leadership on organizational and employee innovation, based on a comprehensive analysis of 101 empirical studies from 2008 to June 2024. Findings This research suggests that authentic leadership has a significant impact on organizational innovation, promoting trust, ethical behavior and transparency. Key mediating factors, such as psychological empowerment and psychological capital, play crucial roles, enabling employees to feel valued and motivated to contribute creatively. Additionally, the effectiveness of authentic leadership is moderated by contextual factors, such as organizational culture and external pressures, which can either enhance or limit its impact. Originality/value This paper is among the first to contribute to authentic leadership and innovation literature by detailing how authentic leadership impacts innovation, focusing on boundary conditions and mediators and providing insights for scholars and practitioners. Organizations and managers can enhance innovation by encouraging leaders to be genuine, transparent and ethical, thereby building a culture of creative thinking that leads to more effective problem-solving and the development of innovative solutions.