Driving Idea Exploration to Implementation: The Role of Transformational Leadership in Fostering Innovative Work Behavior

ABSTRACT In today's digital era, innovation is vital for organizations. This study examines how transformational leadership (TL) affects the dimensions of innovative work behavior (IWB)—idea exploration, generation, promotion, and implementation—using hospitality as a case. Using social exchange theory, we investigate the mediating role of innovative climate and the moderating role of psychological empowerment. Survey data from 350 employees shows that TL influences IWB indirectly through an innovative climate. Psychological empowerment strengthens this relationship, with higher empowerment levels producing stronger effects for indirect relationships. The findings emphasize how innovative climate and psychological empowerment help translate TL into enhanced employee innovation.