Blocking Psychological Contract Breach and Improving Leader-Member Exchange through Innovative Leadership

Abstract

This theoretical paper investigates the role of innovative leadership in enhancing leader-member exchange (LMX) and mitigating psychological contract breach (PCB). The focus is on how innovation in leadership strengthens the quality of relationships between leaders and employees, subsequently impacting employee behavior positively. The characteristics of innovative leadership are examined to elucidate its potential in fostering trust, commitment, and mutual respect within organizations. Furthermore, this paper addresses how improved LMX through innovative leadership influences employees' organizational citizenship behavior (OCB), leading to enhanced overall organizational performance. By exploring the dynamics between innovative leadership, LMX, and PCB, the paper provides a comprehensive understanding of the mechanisms through which innovative leadership can prevent PCB and improve LMX. This analysis offers valuable insights for both scholars and practitioners in the fields of organizational behavior and leadership, highlighting practical implications for fostering a positive organizational environment.

Keywords

• innovative leadership
• leader-member exchange
• psychological contract breach
• organizational theory
• employee behavior