Entrepreneurial leadership promoting employees’ innovative behavior through motivation and creativity

To enhance innovation and service quality while keeping pace with evolving customer expectations, organizations in the hospitality sector are increasingly exploring ways to foster employee innovation. This study examines the relationships among organizational motivation to innovate (OMI), employee creativity (EC), and entrepreneurial leadership (EL) with respect to employees’ innovative behavior (EIB), grounded in social cognitive theory. Data were collected through surveys of staff and managers in Ethiopian hospitality organizations, and the model was tested using partial least squares structural equation modeling (PLS-SEM). These findings highlight the pivotal role of leadership in cultivating an organizational culture that prioritizes creativity and innovation. Specifically, EC and OMI significantly contribute to explaining how EL inspires employees to engage in innovative behavior and problem-solving. These parallel mediation roles ultimately promote innovative behavior among employees, enabling organizations to adapt to changing customer needs and maintain a competitive edge. By establishing a creative and supportive environment that encourages and values innovation, leaders can unlock their workforce's potential. The paper concludes by outlining the practical implications for managers and policymakers in the hospitality sector, recognizing the current study's limitations, and offering directions for future research. Overall, the findings offer actionable insights for hospitality firms seeking to enhance their innovation capabilities through leadership development, organizational motivation, and employee creativity.