Empathetic Leadership and Innovative Work Behavior: A Moderated Mediation Model of Well-being and Organizational Culture

Abstract

As organizations today are hoping to improve innovation by adopting the relational approach to leadership which encourages employees to behave in certain ways. This research explores the ways in which empathetic leadership influences innovation in the workplace and examines if well-being and how the culture at work add to this influence. Using COR theory, the model was investigated by carrying out a three-wave, time-lagged survey among 327 banking employees in Punjab, Pakistan. Findings showed that, having an Empathetic leader makes IWB higher, both directly and in part based on how the leader helps employees feel well. Organizational culture also softens both the leadership impact on employee well-being and the way innovation is affected when leadership is strong. Specifically, where flexibility, teamwork and psychological safety are valued, the influence of Empathetic leadership on innovation grows. Experimental results give theoretical backing to COR theory’s idea about accumulating resources and explain how relational and contextual resources influence innovation together. The research adds to the fields of leadership and innovation by understanding when and how being empathetic supports new ideas. Suggestions are provided for organizations to link their leadership development with culture to improve their employees’ ability to be creative and flexible.

Keywords: Empathetic leadership, innovative work behavior, employee well-being, organizational culture, COR theory, moderated mediation