Employee Innovative Behavior as a Mediator on the Relationship between Leadership Styles and Employee Innovative Performance; Conceptual Framework

ABSTRACT

This study investigates the nexus between leadership styles and employee innovative performance within the context of Saudi Arabias manufacturing Small and Medium-sized Enterprises (SMEs). Employing a multi-dimensional approach, the research dissects four leadership styles—transformational, autonomy, laissez-faire, and inclusive—and their potential influences on innovative outcomes. The mediating role of employee innovative behavior is explored, offering insights into the mechanics of how leadership directives translate into actionable results. Additionally, the moderating effects of the psychological environment and digital innovation are examined, providing a holistic understanding of the multifaceted influences on innovation. Grounded in foundational theories such as the Transformational Leadership Theory, Path-Goal Theory, Cognitive Evaluation Theory, and Diffusion of Innovation Theory, the study unravels the complex tapestry of leadership, motivation, technological advancement, and innovative practices. Results underscore the paramount importance of effective leadership and an empowering organizational climate for fostering innovation, with implications for leadership development and strategic innovation management in SMEs.

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