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Article
Publication date: 14 February 2024

Asma Ali Alhosani and Syed Zamberi Ahmad

This paper aims to explore the link between transformational leadership and employee creativity through the lens of self-determination theory, with psychological empowerment…

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Abstract

Purpose

This paper aims to explore the link between transformational leadership and employee creativity through the lens of self-determination theory, with psychological empowerment serving as a mediating factor. Additionally, it will examine how financial rewards and job formalization might moderate this relationship.

Design/methodology/approach

The research uses a survey approach, targeting employees and supervisors from government ministries in the United Arab Emirates through purposive sampling. The study collected data from 254 participants via an online questionnaire and analyzed it using the partial least squares structural equation modeling technique in SmartPLS4.

Findings

The results show that transformational leadership has a significant impact on the psychological empowerment and creative performance of employees. The relationship between transformative leadership and employee creative performance is mediated by psychological empowerment. Additionally, the moderating effects of financial rewards and job formalization are explored. The findings do not support the moderating role of job formalization, and financial rewards negatively moderate the transformational leadership–psychological empowerment relationship.

Research limitations/implications

The research is centered on a particular cultural setting and government ministry employees, thus limiting the generalizability.

Originality/value

This study explores at how transformational leadership affects employee creativity, considering the role of psychological empowerment and how financial rewards and job structure might influence this relationship.

Details

Transforming Government: People, Process and Policy, vol. 18 no. 1
Type: Research Article
ISSN: 1750-6166

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