From sharing to success: enhancing innovative work behavior through psychological empowerment and kinship employee engagement

Abstract

Purpose This study aims to explore the distinctive dynamics of knowledge sharing, empowering leadership, psychological empowerment, innovative work behavior, and the moderating impact of kinship employee engagement in the creative industries of SMEs in Tana Toraja, Indonesia. Design/methodology/approach Using structural equation modeling, this research analyzes quantitative data collected from 512 employees in creative industry SMEs. Findings Knowledge sharing is not found to be associated with psychological empowerment but is positively related to innovative work behavior. Empowering leadership is positively associated with both psychological empowerment and innovative work behavior. Psychological empowerment mediates the relationships between knowledge sharing and innovative work behavior, as well as between empowering leadership and innovative work behavior. Finally, kinship employee engagement moderates the relationship between psychological empowerment and innovative work behavior. Research limitations/implications The cross-sectional design restricts establishing causal relationships among variables, suggesting the need for longitudinal studies. Contextual factors specific to Tana Toraja, such as cultural nuances and economic conditions, may not have been fully explored, impacting the applicability of findings elsewhere. Future research could mitigate these limitations by using larger and more diverse samples, using mixed-methods approaches and conducting longitudinal studies to track changes over time. Practical implications The findings underscore the importance of nurturing empowering leadership and promoting a culture of knowledge sharing to cultivate innovative work behavior. Moreover, leveraging kinship relationships can optimize organizational effectiveness and employee engagement in culturally nuanced settings. Social implications Strengthening these organizational practices not only enhances SME performance in creative industries but also fosters community cohesion and contributes positively to societal well-being. Originality/value This research uniquely explores the interplay of knowledge sharing, empowering leadership, psychological empowerment and the role of kinship employee engagement in enhancing innovative work behavior within SMEs in culturally distinct contexts like Tana Toraja’s creative industries.