The Role of the Organizational Climate for Innovation on the Influence of Leadership on Innovative Work Behavior

Abstract

During the pandemic, which has changed a lot of people's behavior (work, study, and online shopping), it is very demanding that employees have new ideas (innovations) for the sustainability of the company. Innovation is essential for the development, sustainability, and competitiveness of companies in today's economy. Although the importance of leadership for the innovation process has been recognized, understanding of the relationship between leadership style and the level of innovation in work teams is still limited. This study analyzes the positive influence of charismatic leadership, transformational leadership, and transactional leadership on innovative work behavior mediated by the organizational climate for innovation. The novelty of this research is to investigate leadership from two different theories. The two leadership theories are the influence theory (charismatic leadership) and relationship theory (transformational and transactional leadership). The unit of analysis used in this study is the individual, namely the respondents who are employees of the state-owned enterprises of the Republic of Indonesia. The design in this study uses hypothesis testing (hypotheses testing). The statistical method to be used is the structural equation model (SEM) method with the help of Amos 24 software. From the results of the study, it was found that only the organizational climate for innovation affected innovative work behavior. However, the Organizational Climate for Innovation can act as a mediator for Charismatic Leadership and Transactional Leadership for Innovative Work Behavior. Thus, to improve the innovative work behavior of the employees of the State-Owned Enterprises of the Republic of Indonesia, an innovative cultural climate is needed. Managers need to be open to new ideas, encourage employee creativity, and create employee freedom/autonomy in decision-making. Keywords: charismatic leadership, tranformational leadership, transactional leadership, innovative work behaviour, organizational climate for innovation. https://doi.org/10.55463/issn.1674-2974.50.2.11