Unveiling the Power of Authentic Leadership: Pathways to Organisational Innovativeness through Creativity and Knowledge Sharing

Abstract

While authentic leadership has gained increasing attention in organisational behaviour research, there remains a lack of empirical evidence exploring how it translates into innovation outcomes through psychological and behavioral mechanisms such as knowledge sharing and creativity. This study addresses this gap by investigating the mediating roles of creativity and knowledge sharing in the relationship between authentic leadership and innovativeness. The target population for this study consisted of employees working in the apparel industry. The focus on this sector is due to its significance in the manufacturing economy and the relevance of leadership, creativity, and knowledge sharing in enhancing innovativeness within such organisations. A purposive sampling technique was employed to select respondents who were knowledgeable and experienced in organisational processes related to leadership and innovation. Data were collected from multiple apparel industries, and the study achieved a response rate of 87%, which is considered highly satisfactory for organisational surveys. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings reveal that authentic leadership significantly enhances creativity (β = 0.479, p < 0.001), innovativeness (β = 0.368, p < 0.001), and knowledge sharing (β = 0.742, p < 0.001). Furthermore, creativity mediates the relationship between authentic leadership and innovativeness (indirect effect β = 0.170, p < 0.001), while knowledge sharing also serves as a key mediator between authentic leadership and both creativity (β = 0.245, p = 0.005) and nnovativeness (β = 0.238, p = 0.007). Further, the model's predictive relevance is supported by satisfactory values of R² and Q² for all endogenous constructs, with innovativeness showing the highest R² (0.885). Reliability and validity assessments confirm the robustness of the measurement model, as reflected in high composite reliability (ρ_c > 0.9) and AVE values above 0.5 for all constructs. Additionally, HTMT ratios and Fornell-Larcker criteria affirm discriminant validity. These findings underscore the pivotal role of authentic leadership in fostering a knowledge-sharing environment that enhances both individual creativity and organisational innovativeness. The study adds to leadership literature by identifying knowledge sharing and creativity as mechanisms through which authentic leaders can cultivate innovation. Implications suggest that organisations aiming for sustained innovation should prioritize the development of authentic leadership traits and supportive knowledge sharing cultures.