Title: Fostering innovative work behaviour in Indian IT firms: the mediating influence of employee psychological capital in the context of transformational leadership

Authors: A.K. Subramani; N. Akbar Jan; Siji Joseph; Rajasekhar David

Addresses: Saveetha School of Management, Saveetha Institute of Medical and Technical Sciences, Chennai, Tamil Nadu, India ' Department of Human Resources and Soft Skills, ICFAI Business School (IBS) Hyderabad, The ICFAI Foundation for Higher Education (Deemed to be University), Hyderabad, Telangana, India ' Department of Business Administration, Loyola College, Nungambakkam, Chennai, Tamil Nadu, India ' HR and OB Department, Indian Institute of Management, Ranchi, Jharkhand, India

Abstract: This empirical study investigates the mediating role of two components of psychological capital (PsyCap), namely self-efficacy and optimism, in the context of the relationship between transformational leadership (TL), work engagement (WE), and innovative work behaviour (IWB). The study was conducted among IT professionals with a minimum of three years of experience employed in Chennai, India. Data collection was executed using a Google Form, and both measurement and structural models were examined using SPSS 25.0 and AMOS 23.0. The findings of this study reveal several significant relationships. Firstly, transformational leadership (TL) demonstrates a robust positive association with work engagement (WE). Furthermore, work engagement (WE) positively correlates substantially with innovative work behaviour (IWB). Notably, the study underscores that two crucial components of psychological capital, specifically self-efficacy and optimism, mediate the relationship between transformational leadership (TL) and work engagement (WE). These findings carry valuable implications for IT company managers. Recognising that transformational leadership positively influences both work engagement and employees' innovative work behaviour highlights the pivotal role of leaders in fostering a productive and innovative work environment within IT organisations.

Keywords: transformational leadership; work engagement; psychological capital; self-efficacy; optimism; innovative work behaviour; IWB; information technology.

DOI: 10.1504/IJWI.2024.142024

International Journal of Work Innovation, 2024 Vol.5 No.4, pp.384 - 402

Received: 04 Aug 2023
Accepted: 18 Sep 2023
Published online: 07 Oct 2024 *

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