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.
