Impact of Entrepreneurial Leadership on Employee's Innovative Behavior: Mediating role of Psychological Empowerment

Abstract

This study explores the impact of entrepreneurial leadership (EL) toward employees' innovative behavior (IB) along with the mediating role of psychological empowerment (PE). The data were collected using a random distribution of the surveys among 301 managers and employees within small and medium-sized enterprises (SMEs) in Pakistan. The integrated model developed to highlight the direct and indirect relationship between EL and IB with intervening influence of PE. The questionnaire was divided into two sections such as managerial level and employee's level. Structure equation modeling analysis technique is majorly employed to calculate the proposed relationships by means of descriptive statistics, discriminate validity, and Pearson's correlation analysis techniques. The findings revealed that EL has a direct impact on IB and an indirect impact on IB through PE, respectively. Furthermore, this study promotes insightful information regarding IB of employees, EL, and PE relationships. Based on such findings, theoretical and managerial implications are reported.