Servant Leadership on Employees' Innovative Behavior with Innovative Self-Efficacy as a Mediator: A Study of Regionally Owned Enterprises (ROE)

¹ Study Programme of Management, Faculty of Economics and Business, State University of Surabaya, Indonesia
² Faculty of Technical and vocational Education, Universiti Tun Hussein Onn Malaysia UTHM Johor, Malaysia

^* Corresponding author: khoirurrozaq@unesa.ac.id

Abstract

This research examines the consequences about servant leadership on employees' innovative behavior, with creative self-efficacy serving to be a mediating variable. Innovation is essential in improving the performance of organizations, and it goes hand in hand with solid leadership, which is critical in promoting innovation. A quantitative research design was applied, and a survey research design was used, with the target population consisting of 341 purposively sampled ROE employees. Data were collected using standardized questionnaires that focused on the traits of servant leadership, creative self-efficacy, and the innovative behavior of employees. Partial Least Squares Structural Equation Modeling (PLS-SEM) has been applied to analyze the model's structure along with evaluate the mediating effects of the predictors. The research objectives have been achieved within this context. Servant leadership positively affects creative self-efficacy and employees’ innovative behavior, where both were mediated by self-efficacy and innovative self-efficacy. It might be concluded that self-efficacy and creativity serve as mediators between servant leadership and employees’ innovative behavior. The outcome of this investigation underscore the worth of having supportive leadership in assisting employees in being innovative and demonstrate that inventive sense of self-efficacy increases employees’perspectives in wading through difficulties and approaches in formulating new and better strategies.