Inclusive Leadership and Innovative Work Behavior:The Mediating Role of Autonomous Motivation and Perceived Job Autonomy in Pakistan’s Banking Sector

Abstract

The aim of this study is to inspect the role of Inclusive Leadership as a predictor of Innovative Work Behavior. It also investigates the mediating role of Autonomous Motivation and Perceived Job Autonomy in Pakistan’s banking sector. Based on the Self-Determination Theory (SDT), this study argues that Inclusive Leadership fosters Autonomous Motivation and Perceived Job Autonomy, which, in turn, leads to Innovative Work Behavior. The sample that was used on this research consisted of professionals in managerial and leadership positions, ensuring relevant and informed responses for the study. A total of 298 responses were used for the final data analysis. This study employed the Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0 to test hypothetical relationships. The results revealed that IL has a significant positive effect on IWB. Furthermore, PJA was found to be a significant mediator of the relationship between IL and IWB. Given that both the direct effect of IL on IWB and the indirect effect through PJA are significant, the results indicate the PJA plays a partial mediating role in this relationship. Similarly, AM was found to be a significant mediator of the relationship between IL and IWB. The significance of both the direct and indirect effects suggested that AM also plays a partial mediating role in the relationship between IL and IWB. Overall, the findings of this study confirm the direct effect of IL on IWB, as well as the partial mediating role of PJA and AM in Pakistan’s banking sector.