Empowering Leadership and Innovative Work Behavior: A Moderated Mediation Examination
Empowering Leadership and Innovative Work Behavior: A Moderated Mediation Examination
1. Introduction
Innovative work behavior (IWB) of employees has emerged as a critical factor for
organizations to achieve competitive advantage and assure long-term survival in the
present highly competitive business environment. IWB refers to the creation, development
and implementation of new and useful ideas in the organization (Baer, 2012). In one of
the recent studies, Shanker et al. (2017) argued that the organizations which fail to innovate
potentially diminish their ability to fight competition and run at the risk of going out of the
market. Alternatively, organizations which continually innovate have been found to achieve
a higher level of organizational performance (Ogbonnaya and Valizade, 2016). This indeed
has compelled organizations to identify antecedents that foster employee’s IWB (De Jong
Received 27 August 2018
and Den Hartog, 2010; Xerri and Brunetto, 2013). Out of the various antecedents identified Revised 3 March 2019
that range across rewards, human resouce development practices, quality of work Accepted 6 March 2019
DOI 10.1108/JKM-08-2018-0533 VOL. 23 NO. 5 2019, pp. 915-930, © Emerald Publishing Limited, ISSN 1367-3270 j JOURNAL OF KNOWLEDGE MANAGEMENT j PAGE 915
relationships, organizational justice and employee commitment (Janssen, 2000;
Dorenbosch et al., 2005; Reuvers et al., 2008; De Jong and Den Hartog, 2010; Prieto and
Pérez-Santana, 2014; De Spiegelaere et al., 2015; Dhar, 2016; Shankar et al., 2017),
leadership has long been recognized as one of the prime factors that influences employee’s
IWB (Reuvers et al., 2008; Aryee et al., 2012; Koryak et al., 2015; Choi et al., 2016; Bagheri,
2017).
Despite the growing body of research concerning the association between leadership and
employee’s IWB (Choi et al., 2016; Bagheri, 2017), the impact of an emerging and
promising leadership concept, empowering leadership (EL), has been potentially
overlooked by the researchers (Chen et al., 2011). Past researchers have however
examined the impact of other leadership styles like transformational, ethical and authentic
leadership on IWB (Jung et al., 2008; Choi et al., 2016; Yidong and Xinxin, 2013; Chen and
Hou, 2016). But what differentiates EL from these is the fact that it aims at creating
independent and self-directed individuals, rather than creating a dependence, which may
happen in case of a transformational leader (Biemann et al.,2015). It additionally goes
beyond than just mere delegation of authority and focuses on a broader range of behaviors,
for instance, expressing confidence in employees, removing bureaucratic hindrances,
building employee capabilities (Arnold et al., 2000; Ahearne et al., 2005) and encouraging
employee’s proactive behavior (Martin et al., 2013), which we expect will superiorly foster
employee’s IWB.
EL is a leadership style which adopts an on-going philosophy of sharing power and
authority with the followers (Martin et al., 2013). Past literature asserts that empowering
leaders allow followers to take control of their work (Srivastava et al., 2006) which enhances
their intrinsic motivation to take risks and try new things (Zhang and Bartol, 2010). While
researchers offer sufficient empirical evidence for the positive impact of EL on employee’s
creativity (Zhang and Bartol, 2010; Zhang and Zhou, 2014; Amundsen and Martinsen,
2015), which acts as an immediate precursor to employee’s IWB (Malloch, 2014), not much
attention has been given to the effect of EL on employees’ IWB (Slåtten et al., 2011;
Gkorezis, 2016).
Scholars in the past have also advanced the positive impact of EL on knowledge sharing
(KS) in an organization (Srivastava et al., 2006; Xue et al., 2011). KS relates to the sharing of
task-relevant ideas, information and suggestions amongst team members working together
in an organization (Srivastava et al., 2006). While, on the one hand, Xue et al. (2011)
proposed a strong coherence between EL and follower’s intentions toward sharing
knowledge with others in the organization, on the other hand, Radaelli et al. (2014) have
argued that KS promotes IWB by stimulating a new understanding of the knowledge and its
mobilization for innovation purposes. Although both EL and KS have been found to
complement IWB individually (Lee et al., 2014; Wu and Lee, 2017), their integrated impact
on IWB has not been explored yet.
The study additionally incorporates the moderating impact of role clarity (RC) between EL
and KS. RC occurs when employees understand what is expected of them and are clear on
the means to carry out their jobs effectively (Rizzo et al., 1970). As lack of RC is likely to
deplete the resources or energy of the subordinates (Hobfoll, 1989), the researchers
anticipate that employees with low RC may refrain from sharing knowledge with others in the
organization, despite the encouragement and support extended by an empowering leader.
This is because employees with low RC lack a clear understanding of their job which makes
them incompetent and in less control of their surroundings (Wang et al., 2016). While
employees with high RC out of high psychological empowerment and confidence
(Hall, 2008) are more likely to share knowledge and act innovatively.
Considering the above, the key research questions driving this study are:
RQ1. Does EL positively impacts the employee’s IWB at the workplace?
Role
Clarity
3. Method
3.1 Participants and procedures
We collected responses from supervisors and their immediate subordinates working in
pharmaceuticals organizations in India. A separate questionnaire was distributed to both
the supervisors and the subordinates, such that subordinates were asked to rate on
supervisors empowering behaviors, RC and KS behavior of self and supervisors were
asked to rate his/her immediate subordinates on IWB. Approximately 300 dyads were
approached for data collection. A total of 250 filled in responses were received. However, of
these, 15 questionnaires had to be discarded as a result of missing data. The remaining
235 were used in statistical analysis, satisfying the minimum sample size requirement for
structural equation modeling (Hair et al., 2014). Among the 235 participants, 190 were
males (average age = 28.38, SD = 2.28) and 45 were females (average age = 25.00, SD =
1.33).
3.2 Measures
Standardized scales were anchored on a five-point Likert scale that ranged from (1)
“strongly disagree” to (5) “strongly agree.”
3.2.1 Empowering leadership. We used 18-item multidimensional scale of Arnold et al.
(2000) to measure EL behavior. The dimensions and items were; lead by example (“My
supervisor sets a good example by the way he/she behaves”), participative decision-
4. Results
4.1 Validity issues
To test the distinctiveness among the study variables, confirmatory factor analysis was
conducted using Amos 20. The results of the same have been presented in Table I. The
four-factor measurement model fit the data well: x 2 = 172.60, df = 91, CFI = 0.92, GFI =
0.96, TLI = 0.97, RMR = 0.04 and RMSEA = 0.05. All indicators had statistically significant
factor loadings (p < 0.01), suggesting convergent validity (Anderson and Gerbing, 1988).
We then tested discriminant validity in several ways. First, the one-factor measurement
model fit the data poorly: x 2 = 536.03, df = 97, CFI = 0.55, GFI = 0.64, TLI = 0.69, RMR =
0.05, and RMSEA = 0.15. The x 2 difference relative to the four-factor model was significant
(D x 2 = 360.43, p < 0.01), hence showing noticeably dissimilar factors. Additionally,
authors have conducted three more CFA’s by changing different combinations as
mentioned in Table I. The results revealed that the four-factor measurement model was
better than any alternative three-factor measurement model. Therefore, the results show
clear evidence for the discriminant validity of all our study variables.
Results in Table II show the descriptive statistics, internal consistency reliabilities, and
correlations among the variables. All correlations were in the expected directions and
provided support for further testing of the hypotheses. Hypothesis testing was conducted
following the guidelines provided by Muller et al. (2005); multiple regression analysis was
utilized to test our moderated mediation model. To condense the multi-collinearity issues,
we centered EL, RC and KS following the procedure given by Aiken and West (1991).
Figure 2 displays the standardized path coefficients obtained from testing the structural
model. The structural model satisfied the threshold values for all indices; x 2 = 169.07, df =
89, CFI = 0.93, GFI = 0.95, TLI = 0.91, RMR = 0.04, and RMSEA = 0.05. Overall, the
structural model fitted significantly to the data.
As shown in Table III (Models 1 and 2), after we controlled for employees’ sex, age, and
education, EL was positively and significantly related to employee’s IWB ( b = 0.39, p <
0.01). The proportion of variance in employee’s IWB explained by EL was also significant
(DR2 = 0.05, p < 0.01), thus supporting H1. H3 predicted that KS would mediate the
relationship between EL and employee’s IWB. As mentioned in Table III, after controlling for
all control variables, we found that EL was positively and significantly related to KS (Model
3: b = 0.45, p < 0.01) and then KS was positively and significantly related to employee’s
IWB (Model 4: b = 0.32, p < 0.01) provided support for H2. Furthermore, when we
controlled for the effect of EL, we found that KS was still positively related to employee’s
IWB ( b = 0.23, p < 0.01, Model 5). Additionally, authors have conducted bootstrapping
procedure with percentile confidence intervals (CIs) revealed that EL was indirectly related
to employee’s IWB through KS (indirect effect = 0.18; Sobel z = 3.86, p < 0.01; 95 percent
CI = 0.042-0.153). However, the direct path between EL and IWB was significant even after
introducing KS (Mediator) which indicates partial mediation. All of these results support H3.
Further H4 indicated that RC moderates the relationship between EL and KS, such that this
relationship would be stronger with higher levels of role RC. As presented in Table III
(Model 7), the interaction term of EL and RC was substantial in predicting KS ( b = 0.12, p <
0.05). The surplus proportion of variance in KS explained by the interaction term was also
significant (DR2 = 0.03, p < 0.01); thus, H4 was supported. Additionally, authors have
conducted simple slope tests were conducted to clarify the conditional effect. As shown in
Figure 3, the positive relationship between EL and KS was stronger for employees with high
levels of RC (M þ 1 SD; simple slope = 0.31, p < 0.01) than for employees with low levels of
RC (M 1 SD; simple slope = 0.08, ns). In H5, we proposed that RC would moderate the
indirect relationship between EL and employee’s IWB through KS.
As presented in Table III (Model 8), after controlling for all control variables, we found that
EL, RC and their interaction term, employee KS were positively and significantly related to
employee’s IWB ( b = 0.14, p < 0.01). Further bootstrapping procedure with percentile CIs
shown that EL was indirectly related to employee’s IWB through KS when the level of RC
was high (M þ 1 SD; indirect effect = 0.07; Sobel z = 1.99, p < 0.05; 95 percent
CI = 0.002-0.102). For employees with weaker RC, the indirect relationship between EL and
4.5
Knwledge Sharing
3.5
Low Role Clarity
3
High Role Clarity
2.5
1.5
1
Low EL High EL
employee’s IWB was not significant (M 1 SD; indirect effect = 0.02; Sobel z = 0.65, ns; 95
percent CI= 0.029 to 0.053). Therefore, H5 was supported.
5. Discussion
5.1 Theoretical implications
Theoretically, the study enriches the academic literature in a number of ways. The study
widens our understanding on the enabling side of EL by displaying the positive impact of
EL on employee’s IWB (Cheong et al., 2016). The study additionally enriches the
leadership-innovation literature by exploring the mediating impact of KS between EL and
IWB which has not been studied by the researchers so far. The research conducted also
establishes the significance of RC as a moderator between EL and KS. The study is one of a
kind that highlights the importance of RC (as a boundary condition) in strengthening the
relationship between EL and IWB, which makes a distinctive contribution to the role theory
and leadership-innovation literature. The results of the study also present EL as an
important style for fostering IWB as compared to the well-established transformational
leadership which has been found to show mixed results as regards encouraging
employees’ IWB (Shankar et al., 2017).
7. Conclusion
In conclusion, the study enhances our understanding on the impact of EL on IWB. The
moderated mechanism via the mediating impact of KS and moderating impact of RC
provides rich insights on how leaders today can encourage innovative behavior of the
followers by not just empowering them but also encouraging them in sharing knowledge
with each other. The study further comprehends the relevance of RC which moderates the
relationship between EL and KS and affects the indirect relationship between EL on IWB.
The findings of study can be used by the leaders to foster KS activities in organizations by
empowering employees for promotive innovative work environment.
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