Do Transformational Leadership and Employee Learning Orientation Lead to Organizational Innovation? The Moderating Role of Psychological Empowerment

Abstract

Drawing upon theories of transformational leadership and psychological empowerment, this research tested several hypotheses associating transformational leadership and employee learning orientation with organizational innovation via intervening variable, i.e., employee creativity. Using survey data from administrative and professional employees from public sector in People’s Republic of China (PRC), we found that, as anticipated, transformational leadership and employee learning orientation positively influenced employee creativity, while employee creativity in return positively affected organizational innovation. Whereas, the relationship of transformational leadership and employee learning orientation with employee creativity was moderated by psychological empowerment.