Mediating role of innovative climate among leadership and employee performance in textile exporting firms of Pakistan

Abstract

This research seeks to examine how transformational leadership and ambidextrous leadership impact employee performance. The study focuses on the mediating role of innovation climate in influencing the relationship both directly and indirectly with employee performance. Previous literature shows that many studies have been conducted to measure the employee’s performance under the leadership. Still, no study has covered the mediating role of innovation climate between leadership and employee performance. The present study aims at filling that gap through the presentation of a statistical model. Respondents in the sample included the managerial staff of textile exporting firms of Pakistan. Multiple linear regression and the PROCESS for mediation model in the SPSS was used to analyze the collected data. The results indicated that the CEO transformational leadership and ambidextrous leadership had a significantly positive influence on employee performance. In addition, innovation climate was found to have a strong mediating effect. The researchers recommended the exploration of the impact of other possible moderating variables in future researches. Recommendations were also made for the top management of textile firms for the consideration of innovation climate along with the improvement of employee performance.