How Empowering Leadership Impact Employees’ Creative Behavior in SMEs: The Role of Psychological Safety
DOI:
https://doi.org/10.58192/profit.v4i4.4431Keywords:
Creative Behavior, Creative Industries, Employee Creativity, Empowering Leadership, Psychological SafetyAbstract
Creativity is crucial for the competitiveness and sustainability of Small and Medium Enterprises (SMEs), particularly in dynamic markets where employee creativity drives organizational growth. This study examines the relationship between empowering leadership and employee creativity, focusing on the mediating role of psychological safety. Despite the growing interest in empowering leadership, the impact on creativity remains mixed, particularly in SMEs. The study employs a quantitative research design, collecting data from 156 employees in the creative industries (handicrafts and fashion) in Kabumen, using a survey distributed through online forms. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for data analysis. The findings reveal that while empowering leadership does not directly impact creativity, it enhances psychological safety, which in turn positively affects creativity. This study emphasizes the importance of fostering an environment of trust and openness to encourage creative behavior in SMEs. Leaders should focus on both empowering employees and promoting psychological safety to boost creativity and innovation.
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