Transformational Leadership and Job Stress: The Mediating Role of Innovative Work Behavior on Millennial and Z Performance

Abstract

This article aims to research the influence of transformational leadership and job stress on the performance of millennial and Z employees through innovative work behavior. The sample study totalled 196 respondents, which are non- managerial employees in the city of Surabaya who entered the millennial generation and generation Z. Data is shared through Google Forms and processed using structural equation modeling (SEM) with the LISREL program. The result of data processing stated that transformational leadership has an effect significant and negative on innovative work behavior, job stress has an effect significant and positive on innovative work behavior, innovative work behavior has an effect significant and positive on performance, transformational leadership has an effect significant and positive on performance, job stress has an effect significant and positive on performance, innovative work behavior mediates in a manner negative relation between transformational leadership and performance, as well as mediating innovative work behavior in a manner positive relation between job stress and performance. Stress does not always have a negative impact; stress that leads to eustress makes individuals more challenged in completing work. Practical implications: leaders must be able to motivate without the impression of coercing employees because coercive motivation will have a negative impact on performance