The Effect of Transactional Leadership on Innovative Work Behavior: Testing the Role of Knowledge Sharing and Work Engagement as Mediation Variables

Abstract

This study, in detail, aims to explore and examine the effect of (1) transactional leadership on knowledge sharing, work engagement, and innovative work behavior; (2) knowledge sharing on innovative work behavior; (3) work engagement on knowledge sharing and innovative work behavior; and (4) knowledge sharing and work engagement in mediating the relationship between transactional leadership and innovative work behavior. The population in this study includes line managers, supervisors, and functional staff working in four stone milling companies in Central Java, Indonesia. This research is quantitative in nature, where the research data that has been collected will be processed and analyzed using structural equation modeling (SEM) based on SmartPLS 3.0 version. By analyzing 107 respondents, the results of this study conclude that (1) transactional leadership has a significant effect on knowledge sharing and work engagement, but not on innovative work behavior; (2) work engagement not only has a significant effect on knowledge sharing but also on innovative work behavior; (3) knowledge sharing has a significant effect on innovative work behavior; and (4) knowledge sharing and work engagement fully mediates the relationship between transactional leadership and innovative work behavior. This study gives a comprehensive understanding that knowledge sharing and work engagement become essential variables in linking transactional leadership and innovative work behavior.