Abstract
Purpose: This paper tried to examine the mediation effect of psychological empowerment between empowering leadership and employee creativity Design/Methodology: This study referred to quantitative research design and used a paper-based online questionnaire to collect data from a sample of 65 employees drawn from an Information Technology company in Surabaya, Indonesia. This study used the SEM (Structural Equation Modeling) Partial Least Square analysis with saturated samples. Findings: The results indicate that empowering leadership and psychological empowerment positively and significantly affect employee creativity. The results further reveal that psychological empowerment significantly mediating the relationship between empowering leadership and employee creativity. Practical Implications: The findings of this study provide benefits for company leaders to identify learning solutions to practical solutions, motivate employees to come up with creative ideas, and empower employees. Mostly during challenging times such as during the COVID 19 pandemic, work must be done from home. The results of this study provide opportunities for leaders to produce techniques, policies, and strategies to increase employee creativity through motivation, direction, and empowerment Originality/Value: This study makes a new attempt to demonstrate the mediating effect of empowering leadership and employee creativity in Information Technology companies at Vascomm Surabaya Indonesia. In addition, the research underlines the importance of motivating and always giving employees freedom for creative behavior which is important knowledge in difficult times like today caused by the covid-19 pandemic.
Highlights
The Industrial Era 4.0 was realized by technological developments in various industrial sectors, the ease of information, and the development of the world's business environment that impacted changing strategies owned by every country around the world (Kementerian Keuangan, 2019)
Hypothesis 1, the results reveal that empowering leadership has no significant effect on employee creativity
Leaders always encourage employees to take the initiative at work
Summary
The Industrial Era 4.0 was realized by technological developments in various industrial sectors, the ease of information, and the development of the world's business environment that impacted changing strategies owned by every country around the world (Kementerian Keuangan, 2019). This change makes countries feel that they need other capital besides finance to deal with the changes that occur, but that talented and reliable human resources are needed in managing company resources (Sugiarto, 2019). If the employees are skilled and reliable, they will develop their human resources (Mathis, 2002). Creativity is believed to create competitive organizational abilities because creativity is needed by the organization to adapt to environmental changes and gain a competitive advantage in existing opportunities (Shalley et al, 2004)
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