This study aims to examine how employee empowerment (EE) influences innovative work behaviour (IWB) through the mediating role of transformational leadership (TL). Drawing on conservation of resources theory, the study investigates the follower-driven antecedent pathway through which psychological and contextual resources interact to enhance innovation within hierarchical organisations.
Data were collected from 416 employees across multiple Indian organisations representing diverse industries. Partial least squares structural equation modelling was used to test both direct and indirect effects among EE, TL and IWB.
Employee empowerment exerted a significant positive direct effect on innovative work behaviour (β = 0.381, t = 6.361, p < 0.001) and on transformational leadership (β = 0.529, t = 12.499, p < 0.001). Transformational leadership partially mediated the EE−IWB relationship (indirect effect = 0.155, 95% CI [0.094, 0.230]; VAF = 29%), confirming all three hypotheses. The model explained 28.0% of the variance in transformational leadership and 34.9% of the variance in IWB.
This cross-sectional study limits causal interpretation. Future research should incorporate longitudinal and multi-source designs to establish bidirectional causality and capture dynamic resource interactions more effectively.
Managers can enhance innovation by fostering empowerment initiatives that enable employees to co-create leadership processes, thereby strengthening both autonomy and alignment within hierarchical structures.
This study advances organisational theory by conceptualising empowerment as a follower-driven antecedent of leadership rather than merely its outcome. It contributes to the understanding of how intra-organisational resource interactions drive innovation in non-Western, resource-constrained contexts.
