CREATIVITY IN R&D LABORATORIES: THE ROLE OF TRANSFORMATIONAL LEADERSHIP AND PSYCHOLOGICAL EMPOWERMENT

Abstract

The evidence of the effect of leadership on creativity of research and development (R&D) employees has been both limited and debated. Some research indicates that leadership is unnecessary in an R&D setting, whereas other studies argue that it remains essential even in such environments. Thus, this study seeks to examine the relationship between transformational leadership and creativity of scientists, as well as the mediating role of psychological empowerment between transformational leadership and scientists’ creativity. The research is based on a sample of 357 scientists employed in various public sector R&D laboratories in India. Structural equation modelling techniques, utilising SmartPLS software, were employed to evaluate the relationships among the different constructs. The results indicate that both transformational leadership and psychological empowerment have a significant positive effect on scientists’ creativity. Scientists’ psychological empowerment has a significant positive impact on their creativity. Furthermore, psychological empowerment was found to mediate the relationship between transformational leadership and scientists’ creativity. This study provides valuable insights for public sector R&D leadership, highlights the role of psychological empowerment, and discusses implications for fostering creativity among R&D scientists.