This study focuses on participative leadership as an important factor influencing employees' innovative behavior. In recent years, participative leadership has begun to receive attention as an useful leader behavior that can explain employees’ innovative behavior. Based on social cognitive theory, we hypothesized the mediating effect of psychological empowerment in the relationship between participative leadership and innovative behavior as well as the moderating effect of perceived psychological safety climate in the relationship between psychological empowerment and innovative behavior. Both psychological empowerment and psychological safety are considered to relate to innovative behavior, but their interaction effect have not been adequately discussed and tested. This study tested their interaction effect in innovative behavior. Data were collected using questionnaires from 280 employees to test three hypotheses. Hierarchical regression analyses and SPSS Macro analysis were performed and the results supported all the hypotheses. First, participative leadership positively related to employees' innovative behavior. Second, the relationship between participative leadership and innovative behavior was mediated by psychological empowerment. Third, perceived psychological safety climate positively moderated the relationship between psychological empowerment and innovative behavior. The positive moderating effect means that the higher the perceived psychological safety climate is, the greater the impact of psychological empowerment on innovative behavior. Fourth, the conditional indirect effect was supported, indicating that the indirect effect is stronger when psychological safety climate is high than when psychological safety climate is low. The results of this study confirmed the importance and usefulness of participative leadership by showing the motivational effect of participative leadership on employee innovative behavior. In addition, this study confirmed the mediating effect of psychological empowerment and the moderating effect of psychological safety based on social cognitive theory, which provides the theoretical basis for participatory leadership research. Based on the results of this study, academic and practical implications were further discussed and suggestions for future research were presented.
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