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ABSRJ 2023 Volume 14, Number 2

Innovative behavior: the role of psychological empowerment
Empirical evidence in MSMEs in central Java, Indonesia

Suhana Suhana
Universitas Stikubank, Indonesia
suhana@edu.unisbank.ac.id

Anwar Mansyur
Universitas Stikubank, Indonesia
mansyur@edu.unisbank.ac.id

Lie Liana
Universitas Stikubank, Indonesia
lieliana@edu.unisbank.ac.id

Ali Mursid
Bank BPD Jateng School of Economics and Business, Indonesia
ali.mursyid14@gmail.com

Abstract

This study aims to explore the antecedents of psychological empowerment and its consequences. Employees of micro, small, and medium enterprises in Semarang City, Central Java, Indonesia, comprised this study’s population. This study’s sample size was 158 respondents from various business sectors. Food and beverages, beauty care, massage services, financial services, grocery, and other industries are included. Quota sampling was utilized as a sampling technique. The data were processed using structural equation models. The result indicated that transformational leadership positively affect on psychological empowerment. Knowledge sharing is significantly influenced by psychological empowerment. Other findings include the fact that psychological empowerment has a strong favorable effect on job performance and innovative behavior. This study has theoretical and managerial consequences.

Keywords: transformational leadership; psychological empowerment; innovative behavior; knowledge sharing; job performance

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