Abstract:
Purpose
The banking sector of Pakistan is one of the competitive sectors. The banking or financial
sector is based on being responsive towards innovative demands. The external environment
such as increasing competition in the banking sector puts pressure on the need for innovation.
The aim of this research is to examine the impact of job autonomy and transformational
leadership on employee innovative behavior in the banking sector of Karachi with the
mediating role ofjob satisfaction.
Methodology & Design
The research is quantitative in nature based on deductive approach. Convenience sampling
method is used as sampling technique with sample size of 384 employees working in banking
sector. Smart PLS is used for data analysis. Structural Equation Modelling is used for
hypothesis testing.
Findings
The findings showed the positive impact ofjob autonomy and transformational leadership on
job satisfaction and employee innovative behavior. Mediation analysis confirmed the
mediating role ofjob satisfaction in increasing employee innovative behavior through job
autonomy and transformational leadership. Result is supported by previous studies, when
employees have freedom to schedule their work and leaders’ support their satisfaction
increases and innovation enhances.
Limitations
This research is conducted in limited time frame and data is gathered within 2 months. This
study is limited to banking sector ofKarachi. Result may vary ifit is done in some other sector
or city.
Recommendations
Managers should give time and space to employees to innovate themselves by setting regular
meeting and discussing agenda. Decentralized decision making would also help in this regard.
Managers may have positive outcome by encouraging collaboration and making innovation a
core value ofthe organization
