A Study on the Effectiveness of Empowering Leadership

Purpose - This study investigates the effect of empowering leadership on creative self-efficacy, and the effect of creative self-efficacy on employee creativity. Additionally, this study examines the moderating effect of LMX and the mediating effect of creative self-efficacy. Design/Methodology/Approach - This study collected data from 244 employees in 13 different companies in Korea. Exploratory factor analysis (EFA), Regression analysis and 3-step mediation regression analysis were performed. Findings - Creative self-efficacy positively relates to employee creativity. And the result shows that LMX negatively moderates the relationship between empowering leadership and creative self-efficacy. The result is unexpected finding because LMX caused employee independence and identification to their leaders. Creative self-efficacy mediates the relationship between empowering leadership and employee creativity. Research Implications - This study shows the importance of empowering leadership that can influence creative self-efficacy. Also, it provides creative self-efficacy is an important factor for increasing employee creativity. Additionally, LMX has a moderating effect, and creative self-efficacy has a direct, as well as an indirect effect on employee creativity. Implications of the research findings are discussed, and recommendations for future research are provided.