Motivate to innovate: How authentic and transformational leaders influence employees’ psychological capital and service innovation behavior

Purpose: This study aims to empirically test a research model investigating the effects of authentic leadership (AL) and transformational leadership (TL) on follower service innovation behavior (SIB) with follower psychological capital (PsyCap) as a partial mediator. Design/methodology/approach: Using data from a sample of 336 full-time frontline employees across 15 five-star hotels in Seoul, South Korea, over a time lag of one month, hypothesized relationships were analyzed with structural equation modeling. Findings: The results suggest that AL has a greater effect on follower PsyCap and SIB than TL. In examining the role of PsyCap as a partial mediator, the results support the hypotheses that AL and TL trigger follower SIB directly but at the same time boost follower PsyCap, thus enhancing follower SIB. Practical implications: The greater impact of AL on follower PsyCap and SIB suggests that the practice of corporate human resource management should place an emphasis on AL traits in leadership development. This study offers a useful perspective on the development of follower PsyCap and SIB by linking leadership traits. Originality/value: By discussing AL and TL together within a single research framework, the study extends organizational psychology research by linking TL and AL to two important organizational psychological and performance variables, and exploring their comparative effects.