Effects of Authentic Leadership on Innovative Work Behavior: Psychological Capital as Mediator and Organizational Unfairness as Moderator in Pakistani Public Sector Organizations

Abstract

The purpose of this research is to determine the effects of authentic leadership on innovative work behavior (IWB) in the context of Pakistan’s public sector organizations, with the mediating effect of psychological capital and moderation by organizational unfairness. This study adopted a quantitative research design and questionnaires were used to collect data from 314 respondents, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) technique. The outcomes show that the degree of authentic leadership has a positive impact on the level of IWB. As in the case of psychological capital, it is effective in mediating this relationship, thus underlining the significance of leaders supporting self-efficacy, hope, resilience, and optimism among the workforce to enhance innovation. Furthermore, the organizational unfairness to a great extent moderates the relationship between authentic leadership and IWB; the role of the right environment in encouraging employees’ innovation. This research fills the gap in the literature by describing and explaining authentic leadership and innovation in the context of the public sector organizations. The managerial implications stress the significance of the leadership development initiatives aimed at strengthening the authentic leadership in organizations and creating the supportive environment that would help improve creativity and organizational performance.