The Relationship between Entrepreneurial Leadership and Employee Creativity Mediated by Employee Engagement and Moderated by Open Innovation

Abstract

This study examined the direct and indirect effects of entrepreneurial leadership on employee’s creativity through employee engagement using social cognitive theory. It also examined the moderating role of open innovation on entrepreneurial leadership on employee’s creativity. The sample was selected from small and medium-sized enterprises. An online survey method was employed to collect data. In total, 229 usable responses were retrieved to conduct the analysis. A confirmatory test was used to test the psychometric properties of the scale. To test the study's hypotheses, Process Macro for SPSS was used and model 5 was selected. The results showed that entrepreneurial leadership was significantly related to employee’s creativity. Besides, employee engagement significantly mediated between entrepreneurial leadership and employee’s creativity. The results for the moderating effect also showed a significant and positive moderating effect of open innovation on entrepreneurial leadership and employee’s creativity. Based on the study’s findings, implications for theory and practices are suggested at the end