International Journal on Leadership

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The Mediating Role of Psychological Empowerment in the Relationship between Empowering Leadership, and Engagement and Innovative Work Behaviour


Affiliations
1 Ph.D. Candidate in Business Leadership, Addis Ababa University School of Commerce, Ethiopia
2 Assistant Professor, Addis Ababa University School of Commerce, Department of Marketing; President, Ethiopian Marketing Professionals Association (EMPA), Ethiopia
     

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The main purpose of this study is to examine the influence of empowering leadership on employee innovative work behaviour and work engagement, which is mediated by psychological empowerment. The data were collected from 1,232 employees and 232 supervisors of 18 banks in Ethiopia. Reliability is assessed using Cronbach alpha; to asses validity we employed a structural equation modelling procedure using EQS 6.2. To test the hypothesis, multiple hierarchical regressions and PROCESS-macro model 4 were used. The findings suggest that: there is a positive relationship between empowering leadership and innovative work behaviour. Nevertheless, empowering leadership does not affect work engagement unless mediated by psychological empowerment. Meanwhile, empowering leadership significantly affects psychological empowerment. There is a positive influence of psychological empowerment on innovative work behaviour and work engagement, and psychological empowerment mediates the indirect relationships between empowering leadership and the outcome variables, innovative work behaviour and work engagement. This study provides theoretical enrichment from the aspect of empowering leadership, and practically recommends that leaders can increase employee innovativeness and engagement by creating a work environment which ensures that employees feel empowered psychologically.

Keywords

Empowering Leadership, Psychological Empowerment, Innovative Work Behaviour, Work Engagement
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  • The Mediating Role of Psychological Empowerment in the Relationship between Empowering Leadership, and Engagement and Innovative Work Behaviour

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Authors

Neway Habtemariam Muktar
Ph.D. Candidate in Business Leadership, Addis Ababa University School of Commerce, Ethiopia
Mulugeta Gebremedhin Kassie
Assistant Professor, Addis Ababa University School of Commerce, Department of Marketing; President, Ethiopian Marketing Professionals Association (EMPA), Ethiopia

Abstract


The main purpose of this study is to examine the influence of empowering leadership on employee innovative work behaviour and work engagement, which is mediated by psychological empowerment. The data were collected from 1,232 employees and 232 supervisors of 18 banks in Ethiopia. Reliability is assessed using Cronbach alpha; to asses validity we employed a structural equation modelling procedure using EQS 6.2. To test the hypothesis, multiple hierarchical regressions and PROCESS-macro model 4 were used. The findings suggest that: there is a positive relationship between empowering leadership and innovative work behaviour. Nevertheless, empowering leadership does not affect work engagement unless mediated by psychological empowerment. Meanwhile, empowering leadership significantly affects psychological empowerment. There is a positive influence of psychological empowerment on innovative work behaviour and work engagement, and psychological empowerment mediates the indirect relationships between empowering leadership and the outcome variables, innovative work behaviour and work engagement. This study provides theoretical enrichment from the aspect of empowering leadership, and practically recommends that leaders can increase employee innovativeness and engagement by creating a work environment which ensures that employees feel empowered psychologically.

Keywords


Empowering Leadership, Psychological Empowerment, Innovative Work Behaviour, Work Engagement

References