Abstract

PurposeThrough the lens of social exchange theory, this study aims to assess the relationship between proactive personality and innovative work behavior by incorporating the mediating role of work engagement and moderating role of transformational leadership between proactive personality and work engagement.Design/methodology/approachData were collected from 259 employees working in Pakistani small-medium enterprises (SMEs). The purposive sampling technique was used to collect data. For hypothesis testing, Preacher and Hayes process macro was employed.FindingsConfirmatory factor analysis verified the distinctiveness of the variables used in this study. The findings show that a proactive personality had a positive influence on innovative work behavior directly and indirectly through work engagement, and transformational leadership positively moderates the relationship between a proactive personality and work engagement in such a way that with high transformational leadership behavior relationship will be strengthened.Originality/valueThis study has addressed three research questions that have been left unanswered in the literature. The initial research question is “how proactive personality enhances innovative work behavior?” This study found that proactive personality enhanced innovative work behavior. The second research question is “what are the suggested mechanisms for proactive personality to promote innovative work behavior?” This study has proven that a proactive personality enhanced innovative work behavior through an important mediating mechanism, namely work engagement. Finally, the third question of the study is “does transformational leadership moderate the relationship between proactive personality and work engagement? The study shows that transformational leadership positively moderates between proactive personality and work engagement.

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