The moderating role of performance management systems effectiveness in transformational leadership-innovative work behaviour relationship

Abstract

This study examined the relationships between transformational leadership and innovative work behaviour, as well as the moderating relationships of the perceived effectiveness of performance management system in this relationships. The study used a quantitative approach and survey design with 270 knowledge workers across multiple industries to ensure heterogeneity in the data. The moderated regression analyses did not find support for the moderating role of performance management system effectiveness, but confirmed the relationship between transformation leadership and innovative work behaviours. A further comparison was conducted between the respective influence of transformational leadership and performance management systems effectiveness on employee innovative work behaviour. Using multiple linear regression analysis, the results showed that performance management systems effectiveness had a greater significance impact than transformational leadership on innovative work behaviour. The results therefore contribute to an understanding of the antecedents of innovative work behaviour, and holds practical implications. Specifically, the research suggests that organisations should focus on ensuring that their performance management systems are seen as accurate and fair as part of their strategies to encourage innovative work behaviour in the organisation.