The Process of Visionary Leadership Increases Innovative Performance among IT Industry 4.0 for SMEs for Organizational Sustainability: Testing the Moderated Mediation Model

Abstract

In the era of the fourth industrial revolution, competition among IT industries is becoming increasingly fierce. If a company is weak in its competitive advantage, it can have a huge negative impact on its organizational sustainability and ultimately lead to organizational failure. In such a research background, we highlighted that employees’ innovative performance via creativity acts as an alternative lubricant to increase the sustainable competitive advantage and promote overall organizational sustainability. In particular, employees’ innovative performance has a great relationship with organizational culture and types of leadership. Hence, we focused on exploring the ways in which visionary leadership increases employees’ innovative performance, presenting and verifying a moderated mediation research model related to the innovative performance. To verify our research model, this study conducted a survey of 303 employees from the information technology (IT) industry of SMEs in China. According to the results, visionary leadership was found to have a positive influence on both psychological empowerment and employees’ innovative performance. In addition, psychological empowerment partially mediated the impact of visionary leadership on the innovation performance. Finally, the organizational learning culture moderated the effects of psychological empowerment and the innovation performance. Overall, this study contributes to revealing the process that leads to employees’ innovative performance and contributes to expanding the research field by verifying the moderated mediation model for a sustainable competitive advantage and organizational sustainability in IT Industry 4.0 for SMEs.