How public leadership drives innovation: a conceptual model of intellectual capital and absorptive capacity

Purpose This study develops an integrated conceptual model explaining how distinct public leadership dimensions-transformational, ethical and knowledge-oriented leadership – collectively drive public service innovation (PSI) through the sequential mediating mechanisms of intellectual capital and absorptive capacity. Design/methodology/approach Adopting a conceptual approach, this paper synthesizes insights from the knowledge-based view (KBV), dynamic capabilities theory, and public sector leadership perspectives. A systematic analysis of contemporary literature is used to build a multi-layered framework and develop a comprehensive set of research propositions. Findings The model demonstrates that public leadership styles serve as strategic catalysts to foster intellectual capital. This enhanced knowledge resource subsequently triggers the development of absorptive capacity, which operates as the critical dynamic capability that transforms internal assets into public service innovation outcomes through both direct pathways and a sequential mediation mechanism. Research limitations/implications As a conceptual paper, this framework requires empirical validation. Future quantitative, qualitative, or mixed-method studies are encouraged to test these propositions across diverse public sector configurations and highly turbulent administrative environments. Practical implications The framework highlights that strategic leadership must be matched by structural investments in human capital, digital knowledge infrastructure and collaborative networks to build cross-boundary innovative capacity within bureaucratic environments. Originality/value This study advances public administration literature by breaking open the leadership-innovation “black box.” It provides a novel configuration of leadership behaviors specifically tailored to overcome institutional rigidities by sequentially integrating asset base (KBV) and operational deployment (dynamic capabilities).