The Nexus Between Inclusive Leadership and Innovative Work Behavior: A Multiple Mediation Model

Banking Sector Innovation Development Psychological Safety Affective Trust Creative Self-Efficacy

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In the dynamic banking industry, fostering innovation is crucial for maintaining competitiveness. This study explores how inclusive leadership influences innovative work behavior (IWB) among banking employees in Thailand, focusing on the mediating roles of psychological safety, affective trust, and creative self-efficacy. Drawing upon social information processing theory, social learning theory, and social exchange theory, the research develops a multiple mediation model to examine these relationships. Data were collected from 960 employees across Thai banks and analyzed using structural equation modeling (SEM). The findings reveal that inclusive leadership has a significant and positive impact on psychological safety, affective trust, creative self-efficacy, and IWB. Furthermore, all three mediators were found to significantly influence IWB and mediate the relationship between inclusive leadership and IWB. These results underscore the critical role inclusive leaders play in creating a psychologically safe and trusting environment that enhances employees’ confidence in their creative abilities. The study offers practical implications for banking executives aiming to promote innovation through inclusive leadership strategies. It also contributes theoretically by integrating multiple social theories to explain the mechanisms linking leadership and innovation, highlighting the importance of psychological and interpersonal factors in organizational innovation processes.