Authentic Leadership and Innovation: What is the Role of Psychological Capital?
DOI:
https://doi.org/10.5555/ijosmas.v1i1.1Keywords:
Authentic leadership, innovative work behavior, psychological capital.Abstract
This research aims to measure the effect of authentic leadership style and psychological capital on the innovative work behavior of a manufacturing company in Indonesia. Psychological capital also plays a role as a mediation between the relationship between authentic leadership and innovative work behavior. Data collection was carried out by simple random sampling to the 303 population. The returned and valid questionnaire results were 231 samples. Data processing was using the SEM method with SmartPLS 3.0 software. The results of this research are authentic leadership style and psychological capital have a positive and significant effect on innovative work behavior. Psychological capital as a mediator for the relationship between authentic leadership style and innovative work behavior. This novel research is proposing a model to enhance innovative work behavior among employees of a manufacturing company in Indonesia through authentic leadership practice and psychological capital. This research can pave the way to improve employee readiness in facing global business competition.
Downloads
References
Abbas, M., & Raja, U. (2015). Impact of psychological capital on innovative performance and job stress. Canadian Journal of Administrative Sciences/Revue Canadienne Des Sciences de l’Administration, 32(2), 128–138.
Agistiawati, E., Asbari, M., Basuki, S., Yuwono, T., & Chidir, G. (2020). Exploring the Impact of Knowledge Sharing and Organizational Culture on Teacher Innovation Capability. International Journal of Science and Management Studies (IJSMS), 3(3), 62–77. http://www.ijsmsjournal.org/volume3-issue3.html
Asbari, M., Purwanto, A., Fayzhall, M., Winanti, Purnamasari, D., & Firdaus, R. A. (2020). Hard skills or soft skills: Which are more important for Indonesian teachers innovation. Test Engineering and Management, 83(2836), 2836–2854. http://www.testmagzine.biz/index.php/testmagzine/article/view/4087
Asbari, M., Purwanto, A., Maesaroh, S., Hutagalung, D., Mustikasiwi, A., Ong, F., & Andriyani, Y. (2020). Impact of Hard Skills, Soft Skills and Organizational Culture : Lecturer Innovation Competencies As Mediating. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 142–155. https://ummaspul.e-journal.id/Edupsycouns/article/view/419
Asbari, M., Wijayanti, L., Hyun, C. C., Purwanto, A., Santoso, P. B., Bernarto, I., Pramono, R., & Fayzhall, M. (2020). The role of knowledge transfer and organizational learning to build innovation capability: Evidence from Indonesian automotive industry. International Journal of Control and Automation, 13(1), 319–333. http://sersc.org/journals/index.php/IJCA/article/view/5732
Asbari, M., Wijayanti, L. M., Hyun, C. C., Purwanto, A., Santoso, B., & Article, H. (2019). Effect of Tacit and Explicit Knowledge Sharing on Teacher Innovation Capability. Dinamika Pendidikan, 14(2), 227–243. https://doi.org/10.15294/dp.v14i2.22732
Avolio, B. J., Gardner, W. L., Walumbwa, F. O., Luthans, F., & May, D. R. (2004). Unlocking the mask: A look at the process by which authentic leaders impact follower attitudes and behaviors. Leadership Quarterly, 15(6), 801–823. https://doi.org/10.1016/j.leaqua.2004.09.003
Basuki, S., Asbari, M., Purwanto, A., Agistiawati, E., Fayzhall, M., Rasyi Radita, F., Maesaroh, S., Wahyuni Asnaini, S., Chidir, G., Yani, A., Singgih, E., Nadhila Sudiyono, R., Sestri Goestjahjanti, F., Yuwono, T., & Hutagalung, D. (2020). Pengaruh Organizational Culture terhadap Teacher Innovation Capability dalam Perspektif Knowledge Sharing: Studi Kasus Jabodetabek. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 171–192. https://ummaspul.e-journal.id/Edupsycouns/article/view/432
Che, T., Wu, Z., Wang, Y., & Yang, R. (2019). Impacts of knowledge sourcing on employee innovation: the moderating effect of information transparency. Journal of Knowledge Management.
Chidir, G., Fayzhall, M., Sopa, A., Mustikasiwi, A., Asbari, M., & Purwanto, A. (2020). The Role of Organizational Commitment , Organizational Culture and Mediator Organizational Citizenship Behavior (OCB) on Employees ’ Performance: Evidence from Indonesian Automotive Industry. International Journal of Control and Automation, 13(2), 615–633. http://sersc.org/journals/index.php/IJCA/article/view/11205
Chin, W. (1998). The Partial Least Squares Approach to Structural Equation Modeling (E. Modern Methods for Business Research, In: G. A. Marcoulides (ed.)). Lawrence Erlbaum Associates Publisher.
Devloo, T., Anseel, F., De Beuckelaer, A., & Salanova, M. (2015). Keep the fire burning: Reciprocal gains of basic need satisfaction, intrinsic motivation and innovative work behaviour. European Journal of Work and Organizational Psychology, 24(4), 491–504.
Dhar, R. L. (2016). Ethical leadership and its impact on service innovative behavior: The role of LMX and job autonomy. Tourism Management, 57, 139–148.
Fikri, M. A. A., Asbari, M., Purwanto, A., Nugroho, Y. A., Waruwu, H., Fauji, A., Shobihi, A. W., Singgih, E., Sudiyono, R. N., Agistiawati, E., & Dewi, W. R. (2020). A Mediation Role of Organizational Learning on Relationship of Hard Skills, Soft Skills, Innovation and Performance: Evidence at Islamic School. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 398–423. https://ummaspul.e-journal.id/Edupsycouns/article/view/498
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39. https://doi.org/10.2307/3151312
Ganguly, A., Talukdar, A., & Chatterjee, D. (2019). Evaluating the role of social capital, tacit knowledge sharing, knowledge quality and reciprocity in determining innovation capability of an organization. In Journal of Knowledge Management (Vol. 23, Issue 6). https://doi.org/10.1108/JKM-03-2018-0190
Gaynor, G. H. (2001). Innovator: what does it take to be one? IEEE Antennas and Propagation Magazine, 43(3), 126–130.
Ghozali, I. (2014). Structural Equation Modeling, Metode Alternatif dengan Partial Least Square (PLS) (4th ed.). Badan Penerbit Universitas Diponegoro.
Goestjahjanti, S. F., Novitasari, D., Hutagalung, D., Asbari, M., & Supono, J. (2020). Impact of Talent Management, Authentic Leadership and Employee Engagement on Job Satisfaction: Evidence From South East Asian Industries. Journal of Critical Reviews, 7(19), 67–88. http://www.jcreview.com/?mno=101983
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th ed.). Pearson Prentice Hall.
Hartley, J., & Rashman, L. (2018). Innovation and inter-organizational learning in the context of public service reform. International Review of Administrative Sciences, 84(2), 231–248. https://doi.org/10.1177/0020852318762309
Hsu, M. L. A., & Chen, F. H. (2017). The cross‐level mediating effect of psychological capital on the organizational innovation climate–employee innovative behavior relationship. The Journal of Creative Behavior, 51(2), 128–139.
Hutagalung, D., Sopa, A., Asbari, M., Cahyono, Y., Maesaroh, S., & Chidir, G. (2020). Influence of Soft Skills, Hard Skills and Organization Learning on Teachers’ Performance through Innovation Capability as Mediator. Journal of Critical Reviews, 7(19), 54–66. http://www.jcreview.com/?mno=101978
Jong, J. P. J. D., & Hartog, D. N. Den. (2008). Innovative Work Behavior : Measurement and Validation. Scientific Analysis of Entrepreneurship and SMEs, November, 1–27.
Kaabi, A. A. Al, Elanain, H. A., & Ajmal, M. M. (2018). HRM practices and innovation performance with the mediating effect of knowledge sharing: Empirical evidence from Emirati ICT companies. International Journal of Innovation and Learning, 24(1), 41–61. https://doi.org/10.1504/IJIL.2018.092922
Kang, J. H., Matusik, J. G., Kim, T.-Y., & Phillips, J. M. (2016). Interactive effects of multiple organizational climates on employee innovative behavior in entrepreneurial firms: A cross-level investigation. Journal of Business Venturing, 31(6), 628–642.
Khalili, A. (2016). Linking transformational leadership, creativity, innovation, and innovation-supportive climate. Management Decision, 54(9). https://doi.org/http://dx.doi.org/10.1108/MD-03-2016-0196
Kim, W. G., & Brymer, R. A. (2011). The effects of ethical leadership on manager job satisfaction, commitment, behavioral outcomes, and firm performance. International Journal of Hospitality Management, 30(4), 1020–1026.
Kleysen, R. F., & Street, C. T. (2001). Toward a multi‐dimensional measure of individual innovative behavior. Journal of Intellectual Capital.
Li, X., & Zheng, Y. (2014). The influential factors of employees’ innovative behavior and the management advices. Journal of Service Science and Management, 7(06), 446.
Liu, C.-H. (2017). Creating competitive advantage: Linking perspectives of organization learning, innovation behavior and intellectual capital. International Journal of Hospitality Management, 66, 13–23.
Luthans, F., Avolio, B. J., Avey, J. B., & Norman, S. M. (2007). Positive psychological capital: Measurement and relationship with performance and satisfaction. Personnel Psychology, 60(3), 541–572. https://doi.org/10.1111/j.1744-6570.2007.00083.x
Newman, A., Herman, H. M., Schwarz, G., & Nielsen, I. (2018). The effects of employees’ creative self-efficacy on innovative behavior: The role of entrepreneurial leadership. Journal of Business Research, 89, 1–9.
Okan, T., & Akyüz, A. M. (2015). Exploring the Relationship between Ethical Leadership and Job Satisfaction with the Mediating Role of the Level of Loyalty to Supervisor. Business & Economics Research Journal, 6(4).
Ong, F., Purwanto, A., Supono, J., Hasna, S., Novitasari, D., & Asbari, M. (2020). Does Quality Management System ISO 9001:2015 Influence Company Performance? Answers from Indonesian Tourism Industries. Test Engineering and Management, 83, 24808–24817. http://www.testmagzine.biz/index.php/testmagzine/article/view/12202
Önhon, Ö. (2019). The relationship between organizational climate for innovation and employees’ innovative work behavior: ICT sector in Turkey. Vezetéstudomány-Budapest Management Review, 50(11), 53–64.
Prameswari, M., Asbari, M., Purwanto, A., Ong, F., Kusumaningsih, S. W., Mustikasiwi, A., Chidir, G., Winanti, & Sopa, A. (2020). The impacts of leadership and organizational culture on performance in indonesian public health: The mediating effects of innovative work behavior. International Journal of Control and Automation, 13(2), 216–227. http://sersc.org/journals/index.php/IJCA/article/view/7630
Purwanto, A., Bernarto, I., Asbari, M., Wijayanti, L. M., Choi, &, & Hyun, C. (2020). The Impacts of Leadership and Culture on Work Performance in Service Company and Innovative Work Behavior As Mediating Effects. Journal of Reseacrh in Business, Economics, and Education, 2(1), 283–291. http://e-journal.stie-kusumanegara.ac.id
Putra, A. S., Novitasari, D., Asbari, M., Purwanto, A., Iskandar, J., Hutagalung, D., & Cahyono, Y. (2020). Examine Relationship of Soft Skills, Hard Skills, Innovation and Performance: the Mediation Effect of Organizational Learning. International Journal of Science and Management Studies (IJSMS), 3(3), 27–43. http://www.ijsmsjournal.org/2020/volume-3 issue-3/ijsms-v3i3p104.pdf
Rego, A., Sousa, F., Marques, C., & Cunha, M. P. e. (2012). Authentic leadership promoting employees’ psychological capital and creativity. Journal of Business Research, 65(3), 429–437. https://doi.org/10.1016/j.jbusres.2011.10.003
Saether, E. A. (2019). Motivational antecedents to high-tech R&D employees’ innovative work behavior: Self-determined motivation, person-organization fit, organization support of creativity, and pay justice. The Journal of High Technology Management Research, 30(2), 100350.
Sherine, Nasser, & Mostapha, N. (2019). The Effect of Transformational Leadership on Innovation: Evidence from Lebanese Banks. European Research Studies Journal, XXII(Issue 4), 215–240. https://doi.org/10.35808/ersj/1507
Silitonga, N., Novitasari, D., Sutardi, D., Sopa, A., Asbari, M., Yulia, Y., Supono, J., & Fauji, A. (2020). The Relationship of Transformational Leadership, Organizational Justice and Organizational Commitment: a Mediation Effect of Job Satisfaction. Journal of Critical Reviews, 7(19), 89–108. http://www.jcreview.com/?mno=101999
Sopa, A., Asbari, M., Purwanto, A., Budi Santoso, P., Mustofa, Hutagalung, D., Maesaroh, S., Ramdan, M., & Primahendra, R. (2020a). Hard skills versus soft skills: Which are more important for indonesian employees innovation capability. International Journal of Control and Automation, 13(2), 156–175. http://sersc.org/journals/index.php/IJCA/article/view/7626
Sopa, A., Asbari, M., Purwanto, A., Budi Santoso, P., Mustofa, Hutagalung, D., Maesaroh, S., Ramdan, M., & Primahendra, R. (2020b). Hard skills versus soft skills: Which are more important for indonesian employees innovation capability. International Journal of Advanced Science and Technology, 29(3), 6431–6453. http://sersc.org/journals/index.php/IJAST/article/view/7233
Sudiyono, R. N., Fikri, M. A. A., Asbari, M., Suroso, Nugroho, Y. A., & Singgih, E. (2020). The Role of Employee Engagement in the Relationship between Authentic Leadership , Talent Management and Job Satisfaction. International Journal of Advanced Science and Technology, 29(5), 11809–11836. http://sersc.org/journals/index.php/IJAST/article/view/25377
Sun, Y., & Huang, J. (2019). Psychological capital and innovative behavior: Mediating effect of psychological safety. Social Behavior and Personality: An International Journal, 47(9), 1–7.
Walumbwa, F. O., Avolio, B. J., Gardner, W. L., Wernsing, T. S., & Peterson, S. J. (2008). Authentic leadership: Development and validation of a theory-based measure. Journal of Management, 34(1), 89–126. https://doi.org/10.1177/0149206307308913
Waruwu, H., Asbari, M., Purwanto, A., Nugroho, Y. A., Fikri, M. A. A., Fauji, A., Shobihi, A. W. I., Hulu, P., Sudiyono, R. N., Agistiawati, E., & Dewi, W. R. (2020). The Role of Transformational Leadership, Organizational Learning and Structure on Innovation Capacity: Evidence from Indonesian Private Schools. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 378–397. https://ummaspul.e-journal.id/Edupsycouns/article/view/499
Wojtczuk-Turek, A. (2012). Innovative work behavior and psychological capital–analysis of relationships. Organizacja i Zarządzanie: Kwartalnik Naukowy, 3 (19), 71–88.
Zubair, A., & Kamal, A. (2017). Perceived authentic leadership, psychological capital, and creative work behavior in bank employees. Pakistan Journal of Psychological Research, 32(1), 35–53.