How Style of Leadership Shape on Innovative Work Behavior of Employees: The Mediating Role of Psychological Empowerment in Innovative Culinary MSMESs in Gunung Pati District

Research Aims: This research examines the effec of two contemporary Both transformational and transactional leadership styles play a role in shaping employees’ innovative work behavior. It further examines the mediating function of psychological empowerment in clarifying the connection across innovatory and leadership style. Design/methodology/approach: The research design used was empirical. Information was gathered through a standardized questionnaire distributed to 102 employees of innovative culinary MSMEs in Gunungpati District, Semarang. Research Findings: The research indicates that employing change-oriented leadership has a noteworthy and favorable impact on the application on creative work practices. Conversely, transactional leadership is associated with a substantial decline in employees’ innovative behavior. Furthermore, It was discovered that the bond between creative work practices and transformative leadership was mediated by psychological empowerment. thereby strengthening its positive influence. However, psychological empowerment did not mediate the influence of transactional leadership. Theoretical Contribution/Originality: The analysis contributes to the literature on talent management in the MSME sector by emphasizing the critical role of leadership styles that promote empowerment and foster innovation among employees.