The Impact of Leadership Styles on Employee Creativity: Exploring the Mediating Role of Psychological Empowerment

Abstract

This research investigates the impact of transformational and transactional leadership styles on employee creativity, with a specific focus on the mediating role of psychological empowerment. The research adopts a quantitative methodology, grounded in a positivist research philosophy. The study population comprises university students who are also employees in organizational settings. A convenience sampling method was employed to gather responses from the participants. Data were collected using a structured survey questionnaire. The analysis was conducted using advanced statistical tools, including SPSS and Smart PLS-SEM. The findings reveal that transformational leadership has a significant positive effect on employee creativity. Transactional leadership also demonstrates a notable influence on creativity. Furthermore, the results confirm the mediating role of psychological empowerment, indicating that employees feel more empowered and capable of contributing creatively when leadership styles are aligned with supportive and empowering practices. This research underscores the importance of adopting leadership styles that not only inspire but also empower employees to unlock their creative potential. By highlighting the mediating role of psychological empowerment, the study offers valuable insights for organizations aiming to foster creativity and innovation in their workforce.