ABSTRACT
Innovation is very important for the sustainability and success of the company. Therefore, organizations should consider improving the employees’ innovative work behavior. This study aims to examine the relationship between transformational leadership and the innovative work behavior of employees. This study used a mediation process to uncover the mediating impact of psychological capital in the proposed model. Furthermore, it used cross-sectional design and administered a questionnaire to 285 employees working at a major information and communication technology company in Indonesia (PT XYZ) to assess the proposed relationships. SPSS 25 and Lisrel 8.8 were used for statistical analysis. The result showed that psychological capital mediated the relationship between transformational leadership and innovative work behavior. Thus, the study shows that transformational leaders improved their employees’ innovative work behavior by improving their psychological capital.
