Beyond Psychological Safety: Transformational Leadership as a Catalyst for Employee Innovation

Abstract

Innovation has become essential for organizational competitiveness in knowledge-driven environments characterized by rapid technological change and increasing global competition. The present study examines the relationship between workplace psychological safety and employee innovative work behaviour and investigates the moderating role of transformational leadership. Drawing upon psychological safety theory and transformational leadership theory, the study proposes that psychological safety enables employees to express ideas and engage in experimentation, while transformational leadership strengthens the translation of these ideas into innovative action. Data were collected from 402 full-time employees working in knowledge-intensive and service-oriented organizations using a stratified random sampling technique. Established measurement scales were employed, and hierarchical regression analysis was conducted to test the proposed relationships. The findings indicate that workplace psychological safety positively influences innovative work behaviour, and transformational leadership significantly strengthens this relationship. The results suggest that psychologically safe environments alone may not be sufficient for innovation unless supported by leadership behaviours that provide motivation and intellectual stimulation. The study contributes to organizational behaviour literature by integrating psychological climate and leadership perspectives and provides practical implications for organizations seeking sustainable innovation.