Inclusive Leadership, Psychological Capital, and Employee Innovation Performance: The Moderating Role of Leader-Member Exchange

Abstract

Based on the perspective of psychological capital, this paper studies the impact of inclusive leadership on employee's innovation performance. It is found that inclusive leadership can indirectly improve employee's innovation performance by enhancing their psychological capital. According to organizational support theory, when employees perceive the organization's support for their work, employees will act in favor of the organization. Inclusive leadership allows employees to feel the organization's support for their work, and their psychological capital will increase, thereby improving their innovative performance. The leader-member exchange moderates the relationship between inclusive leadership and psychological capital. Employees with high quality leader-member exchange will have higher levels of psychological capital, and furthermore, employees' innovative performance will be higher.