Transformational leadership, employee innovative behavior and innovation climate

Purpose Drawing on Leader–Member Exchange Theory and Social Exchange Theory, this study examines how transformational leadership (TFL) characteristics (articulate vision, moral modeling, charisma and individual consideration) influence organizational trust (OT) and knowledge sharing (KS), and how these, in turn, affect employee innovative behavior (EIB). Innovation climate (IC) is included as a moderator between OT, KS and EIB. Design/methodology/approach Data were gathered from 335 individuals employed within China's beverage sector. Subsequently, Partial Least Squares Structural Equation Modeling and fuzzy set Qualitative Comparative Analysis were performed as the data analysis method on the data gathered. Findings The results indicate that articulate vision, moral modeling, charisma and individual consideration positively influence OT and KS, which in turn predict EIB. Moreover, IC was found to moderate the relationship, strengthening the effect of OT on EIB. Asymmetrical relationships were observed in the effects of TFL, such that high levels of OT, KS and EIB generally required the combined presence of more than two TFL characteristics. Originality/value While TFL and EIB have been extensively examined in organizational contexts, the integration of TFL characteristics, OT and KS in explaining EIB remains limited. This study fills the gap by validating a framework that links TFL characteristics, OT, KS and EIB through a dual-analytical approach. Besides, as IC has often been studied as an antecedent of EIB rather than as a moderator, this research enhances knowledge by illustrating how IC influences the relationship among OT, KS and EIB.

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Publication Details

Journal
Management Decision
Published
2026-09-16
DOI
https://doi.org/10.1108/md-01-2026-0184
Primary Topic
Job Satisfaction and Organizational Behavior
Type
article
Field-Weighted Citation Impact
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article

Transformational leadership, employee innovative behavior and innovation climate

Jun-Jie Hew, Lee-Yen Chaw, Garry Wei‐Han Tan, Ahmad Samed Al‐Adwan et al.
Management Decision
Job Satisfaction and Organizational Behavior
article

Transformational leadership, employee innovative behavior and innovation climate

Jun-Jie Hew, Lee-Yen Chaw, Garry Wei‐Han Tan, Ahmad Samed Al‐Adwan, Jinyue Wang
article en

Abstract

Purpose Drawing on Leader–Member Exchange Theory and Social Exchange Theory, this study examines how transformational leadership (TFL) characteristics (articulate vision, moral modeling, charisma and individual consideration) influence organizational trust (OT) and knowledge sharing (KS), and how these, in turn, affect employee innovative behavior (EIB). Innovation climate (IC) is included as a moderator between OT, KS and EIB. Design/methodology/approach Data were gathered from 335 individuals employed within China's beverage sector. Subsequently, Partial Least Squares Structural Equation Modeling and fuzzy set Qualitative Comparative Analysis were performed as the data analysis method on the data gathered. Findings The results indicate that articulate vision, moral modeling, charisma and individual consideration positively influence OT and KS, which in turn predict EIB. Moreover, IC was found to moderate the relationship, strengthening the effect of OT on EIB. Asymmetrical relationships were observed in the effects of TFL, such that high levels of OT, KS and EIB generally required the combined presence of more than two TFL characteristics. Originality/value While TFL and EIB have been extensively examined in organizational contexts, the integration of TFL characteristics, OT and KS in explaining EIB remains limited. This study fills the gap by validating a framework that links TFL characteristics, OT, KS and EIB through a dual-analytical approach. Besides, as IC has often been studied as an antecedent of EIB rather than as a moderator, this research enhances knowledge by illustrating how IC influences the relationship among OT, KS and EIB.

Management Decision
Adamson University (PH), Al-Ahliyya Amman University (JO), University of Jordan (JO), UCSI University (MY), Swinburne University of Technology Sarawak Campus (MY)
Climate action
Openalex Percentile: Top 4%
Job Satisfaction and Organizational Behavior
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