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Purpose

The main purpose of this study was to examine the effects of authentic leadership on employee prosocial motivation and firm innovativeness. Following previous academic literature, this research integrates social learning theory and authentic leadership theory.

Design/methodology/approach

Structural equation modeling was used with a sample of 263 employees from different Spanish companies. Questions related to authentic leadership and prosocial motivation were answered by human resource managers, while general managers gave their opinion on firm innovativeness.

Findings

The results show positive relationships between authentic leadership, employee prosocial motivation and firm innovativeness. Prosocial contexts are fostered by authentic leaders, while innovation can flourish in this organizational climate.

Research limitations/implications

The sample is heterogeneous and focuses on Spanish companies.

Practical implications

One of the conclusions of the study is that this type of leadership should be encouraged in organizations, as it creates a context that fosters positive behaviors among employees, improves the organizational climate, and, in turn, fosters innovation.

Originality/value

Literature on the influence of authentic leadership on innovation is scarce. This is one of the few studies that analyzes the effects of authentic leaders on innovation measured at the organizational level. Most previous research has focused on the innovative performance of individuals. In addition, this research sheds light on the mediating effect of prosocial motivation.

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