The purpose of this paper is to investigate the determinants of innovative work behavior (IWB) by examining the moderating role of transformational leadership in the context of…
Abstract
Purpose
The purpose of this paper is to investigate the determinants of innovative work behavior (IWB) by examining the moderating role of transformational leadership in the context of small and medium enterprises (SMEs).
Design/methodology/approach
The study surveyed 371 employees from SMEs in Bosnia and Herzegovina by adopting convenience sampling. Hierarchical regression was used to test the hypotheses.
Findings
The findings supported the authors’ assumptions that IWB determinants such as psychological empowerment, participation in the decision-making process and organizational justice are positively related to IWB. Besides, transformational leadership moderates the relationship between organizational justice and IWB.
Research limitations/implications
The data for this study was collected by using convenience sampling as well as a cross-sectional survey method, which limits the generalization of results.
Practical implications
To spur the IWB among the employees in SMEs, an organization has to create an environment where psychological empowerment is high, employees have a chance to participate in the decision-making process and organizational rules and procedures are fair. In the case of organizational justice, the relationship shall be stronger if transformational leadership is present.
Originality/value
In SMEs, transformational leadership plays an important role. To the best of the authors' knowledge, this is the first study that demonstrates the moderating effect of transformational leadership on the relationship between one specific IWB determinant and IWB.
Details
Keywords
Sumaia Farzana and Peerayuth Charoensukmongkol
This research study investigated the relationship between participative decision-making and innovative work behavior by considering the moderating role of power distance…
Abstract
Purpose
This research study investigated the relationship between participative decision-making and innovative work behavior by considering the moderating role of power distance orientation of individuals. Grounded in the approach-inhibition theory of power, the authors proposed that participative decision-making could mitigate perceived power gap and motivate individuals with high power distance orientation to engage more in innovative work behavior.
Design/methodology/approach
Survey data were collected from 243 faculty members from 2 universities located at Dhaka, Bangladesh. The partial least squares structural equation modeling (PLS-SEM) was used for data analysis.
Findings
The results from the model estimation showed that the positive relationship between participative decision-making and innovative work behavior was stronger among faculty members with high power distance orientation than those with low power distance orientation. The simple slope analysis also clarified the fact that faculty members with high power distance orientation could increase their innovative work behavior to be at the same level as that of faculty members with low power distance orientation when the members were involved highly in participative decision-making.
Practical implications
Participative decision-making is a management practice that should be implemented in order to motivate faculty members to actively engage in innovative work behavior. Particularly for faculty members who are sensitive towards the power status of other members in the workplace, this management practice is highly recommended to lessen the perceived social barrier that discourages these faculty members from engaging in innovative work behavior.
Originality/value
The authors' research advanced knowledge from prior studies by offering new theoretical insight into the role of empowerment practice that could motivate individuals with high power distance orientation to engage more in innovative practices.