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This study examines the impact of transformational leadership on employees' innovative behavior via the mediating role of employee affective commitment and the moderating effect of psychological capital.

A sample of 555 employees from Ghana's textiles and dress-making industry through a three-wave self-administrated questionnaire participated in this study. The study's hypotheses were analyzed using Hierarchical Regression.

Results revealed that the dimensions of transformational leadership positively influenced employee affective commitment and employees' innovative behavior. Furthermore, employee affective commitment positively influenced employees' innovative behavior. Moreover, employee affective commitment exercised mediation effects in the relationship between transformational leadership and employees' innovative behavior. Hope and Optimism moderated the employee affective commitment and employees' innovative behavior relationship. Self-efficacy negatively moderated the employee affective commitment and employees' innovative behavior relationship. Staggering, resilience had no moderation impact on the employee affective commitment and employees' innovative behavior relationship.

The research provides guidlines to employers to prioritize training and development, institutionalize coaching and promote policies and investment that help to uphold employees’ positive emotions and positive psychological development.

This study tests the mediating role of employee affective commitment and moderating role of psychological capital in relation to transformational leadership and employees' innovative behavior. In addition, it assesses the interactive outcome of positive affect and positive psychological development of employees, which has attracted less theoretical and empirical deliberations.