EMPLOYEE INNOVATIVE BEHAVIOR INFLUENCE OF JOB AUTONOMY AND TRANSFORMATIONAL LEADERSHIP WITH THE MEDIATING ROLE OF JOB SATISFACTION IN THE BANKING SECTOR OF KARACHI

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