Exploring the relationship between Transformational Leadership and Innovative Behavior: Testing the Moderated Mediation Effect of Psychological Safety

Abstract

The style of leadership and leader’s competence are expected to be an important role in the rapidly changing and uncertain circumstances of the business environment. In particular, rapid change of business environment requires organizations to innovate, and appropriate innovation can have a direct impact on an organization’s competitive advantage and sustainability. In this regard, this study focused on transformational leadership as a factor that improves innovative behavior. In addition, the mediating effect of self-efficacy was verified in the process of transformational leadership leading to innovative behavior. Furthermore, the moderated mediating effect of psychological safety was also verified. To verify hypotheses, this study conducted a survey on 307 public officials who work in Chinese public institutions. The result was found that transformational leadership had a positive effect on innovative behavior by mediating effect of self-efficacy. However, contrary to the expectations of this study, the moderated mediation effect of psychological safety was found to be insignificant. The moderating effect of psychological safety showed an insignificant effect. It showed showed the different results from previous studies. In relation to these results, theoretical and practical implications were presented in this study. Overall, this study presented a plan to increase innovative behavior and verified the research model. In addition, the directions of future research for innovative behavior were presented.