The Impact of Authentic Leadership on Employee Innovation Behavior and Work Engagement in Specialized, Fined, Peculiar and Innovative SMEs

Abstract

Existing firms are undergoing rapid and substantial change as a result of digital transformation. Dealing with accelerating digital transformation is a difficult process for business leaders. The digital transformation process presents both an opportunity and a challenge. This paper examines how authentic leadership may contribute to increased work engagement and innovative behaviors during times of digital change, both theoretically and empirically. This study investigated data from an online survey of 305 current employees of enterprises in the fields of specialized, fined, peculiar and innovative SMEs, include information technology, media, and networking and so on. SPSS 21.0 and AMOS 23.0 were used to analyze the data. The findings indicate that authentic leadership positively impacts employee innovation behaviors and engagement, and that digital transformation moderates the relationship between authentic leadership and innovation behavior and engagement. Not only do these findings contribute to our understanding of digital transformation and extend and broaden applicable theories of authentic leadership, but they also open the way for corporate leaders to adopt appropriate behavioral techniques to encourage work engagement and innovation. Enhancing employee innovation performance, maximizing management leadership behaviors, and offering practical inspiration all contribute to the long-term success of the firm. The findings are conceptually significant and provide corporate leaders with a practical roadmap.

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