||The Impact of Transformational Leadership on Employee Creativity in Iran Automobile Industry: Mediating Roles of Trust, Psychological Safety, and Psychological Empowerment
||The Impact of Transformational Leadership on Employee Creativity in Iran Automobile Industry: Mediating Roles of Trust, Psychological Safety, and Psychological Empowerment
||Institute of International Management (IIMBA--Master)
Iran automobile industry
This study employs the social exchange theory to examine the effect of transformational leadership on employee creativity, through the mediation of interpersonal trust, psychological empowerment, and psychological safety. Research sample was collected by a dyadic survey approach from supervisors and employees in Iran automobile industry, which is the second most active industry in the country yet now suffers greatly from economic downturns. After a series of validity and reliability checks conducted by a confirmatory factor analysis (CFA), our results show that transformational leadership indeed can advance interpersonal trust, which in turn can enhance employees’ psychological empowerment and psychological safety. Moreover, psychological empowerment shows a positive whereas psychological safety presents an insignificant effect on employee creativity. Finally, interpersonal trust and psychological empowerment sequentially mediate the relationship between transformational leadership and employee creativity. This study contributes to the employee creativity literature by identifying the psychological mechanisms through which leadership behaviors can bring about employees’ creative behaviors. Implications, limitations, and future directions are discussed.
TABLE OF CONTENTS IV
LIST OF TABLES VII
LIST OF FIGURES VIII
CHAPTER ONE INTRODUCTION 1
1.1 Research Background. 1
1.2 Research Objectives and Contributions. 9
1.3 Scope of the Research. 11
1.4 Research Procedure. 12
CHAPTER TWO LITERATURE REVIEW 14
2.1 Theoretical Background. 14
2.2 Introduction of Examined Variables. 18
2.2.1 Transformational Leadership. 18
2.2.2 Interpersonal Trust. 23
2.2.3 Psychological Empowerment. 28
2.2.4 Psychological Safety. 30
2.2.5 Employee Creativity. 32
2.2.6 Creative Personality (Openness to Experience). 33
2.3 Hypotheses Development. 34
2.3.1 Transformational Leadership and Trust. 34
2.3.3 Interpersonal Trust and Psychological Empowerment.36
2.3.4 Interpersonal Trust and Psychological Safety. 38
2.3.5 Psychological Empowerment and Employee Creativity.41
2.3.6 Psychological Safety and Employee Creativity. 42
2.3.7 The Mediate Role of Interpersonal Trust. 44
2.3.8 The Mediate Role of Psychological Empowerment. 45
2.3.9 The Mediate Role of Psychological Safety. 46
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 48
3.1 Conceptual Model. 48
3.2 Summary of Hypotheses. 49
3.3 Sample and Data Collection. 50
3.4 The Construct Measurements. 51
3.4.1 Transformational Leadership. 51
3.4.2 Interpersonal Trust. 54
3.4.3 Psychological Empowerment. 55
3.4.4 Psychological Safety. 57
3.4.5 Employee Creativity. 57
3.5 Control Variables. 58
3.5.1 Openness to Experience and Measurement. 58
3.5.2 Demographic Factor. 59
3.6 Data Analysis Procedures. 62
3.6.1 Descriptive Statistical Analysis. 62
3.6.2 Confirmatory Factor Analysis. 63
3.6.3 Reliability Test. 64
3.6.4 Pearson Correlation Analysis. 64
3.6.5 Structural Equations Modeling (SEM). 65
3.6.6 Common Method Variance. 66
CHAPTER FOUR RESEARCH RESULTS 67
4.1 Data Collection. 67
4.2. Descriptive Data Analysis. 68
4.3 Confirmatory Factor Analysis. 70
4.4. Pearson Correlations. 86
4.5 Reliability Test. 91
4.6 Structural Equation Model (SEM). 92
4.6.1 Comparison Nested Models. 93
4.6.2 Testing the Mediating Effects. 100
4.6.3 Conclusion. 101
4.7 Common Method Variance. 103
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 104
5.1 Research Conclusion. 104
5.2 Theoretical Contribution and Implications. 111
5.3 Managerial Contribution and Implications. 113
5.4 Research Limitations and Future Directions. 115
Appendix 1: Pearson Correlation (N=317, General). 136
Appendix 2: Pearson Correlation (N=317, Pair). 137
Appendix 3: Survey Questionnaire. 138
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