Abstract
Individual feelings of energy (IFE), creative work involvement (CWI) and leader-member exchange (LMX) are understudied areas in Pakistan. The purposes of this study are: a) to analyze the mediating role of LMX on the relationship between IFE and CWI; and b) to evaluate whether the LMX relationship mediates differently for non-managerial staff, supervisors, middle and senior managers. A sample of 300 responses is drawn from the manufacturing companies of Karachi using a questionnaire administered to them. Exploratory factor analysis is used to extract three orthogonal constructs (namely, IFE, CWI, and LMX) and their convergent and discriminant validity are established through confirmatory factor analysis. Both composite and MaxR(H) statistics are estimated to ensure the reliability of the three constructs. The results show that LMX partially mediates the positive relationship between IFE and CWI. In addition, the results of the multi-group mediation analysis for different levels of responsibility show that LMX partially mediates in case of middle and senior management only. However, it does not mediate for non-managerial staff and supervisors. The most important theoretical contribution of the study in the existing knowledge of leadership-creativity relationship is that LMX partially mediates the relationship between IFE and CWI. Besides, this is one of the first reports in the context of the manufacturing companies of Pakistan.
Highlights
In the 21st century, the knowledge-based economy predominantly demands more employees’ productivity and creativity (Atwater & Carmeli, 2009)
It ensures that common method variance (CMV) bias is not likely to be a significant concern in the study (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003; Reio, 2010)
Acknowledging the intricacies of the impact of Leader-Member Exchange (LMX) on creative work involvement (CWI), it is very important to empower the employees within certain limits so that the notion of job autonomy in association with high-quality LMX relationship could possibly accelerate the organizational learning and employee creativity
Summary
In the 21st century, the knowledge-based economy predominantly demands more employees’ productivity and creativity (Atwater & Carmeli, 2009). During the era of hypercompetition, it becomes increasingly difficult and challenging for the competing firms to gain and sustain their competitive advantage (D’aveni, 1995). Wilson and Gilligan (2005) exemplified that there are three distinctive sources of competitive advantage: a) a superior market position (e.g. a differentiated competitive stance, a lower cost base or a protected niche); b) a superior knowledge and/or relationship base (e.g. detailed customer knowledge, trade relationships, technical expertise, political links, or cartel membership); Journal of Management Sciences and c) a superior resource base (e.g. size and economics of scale, financial structures, strategic alliances, the breadth of geographic coverage, marketing and manufacturing flexibility, image/reputation, or channel control). Creativity may be defined as “the production of novel and useful ideas by an individual or small group of individuals working together” (Amabile, 1988). Innovation is referred to as the premeditated application of creative ideas, procedures, and products (West & Farr, 1990)
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