Innovative Behavior of Indonesian Pharmaceutical Employees: The Role of Psychological Empowerment and Leadership

Abstract

Innovative behavior is considered a critical and essential factor for companies in the world of work. This study aims to determine the extent to which psychological empowerment influences the innovative behavior of employees working in pharmaceutical companies, with transformational leadership and transactional leadership as moderators. The research subjects were 115 employees from various pharmaceutical companies across ten cities in Indonesia. Innovative behavioral scales, psychological empowerment scales, transformational leadership scales, and transactional leadership scales were used to collect the data. Subgroup analysis and moderated regression analysis were used to analyze the data. The results show that transformational leadership has a higher score compared to transactional leadership. This result indicates that the hypothesis is accepted. Namely, that psychological empowerment is related to innovative behavior. Specifically, the correlation between variables showed that transformational leadership has a more substantial effect than transactional leadership Keywords: innovative behavior; psychological empowerment; transactional leadership; transformational leadership.