Dual-focused transformational leadership and service innovation in hospitality organisations: A multilevel investigation

Service innovation from hospitality employees can contribute to improving service quality and further facilitating hospitality organisations to gain competitive advantage and maintain prosperity. Drawing upon social exchange theory and social cognitive theory, we developed a multilevel model of the relationships between dualfocused transformational leadership (TFL) and service innovation at the team and individual levels, as well as mediating and moderating mechanisms behind the relationships. Data were collected from team leaders and their employees from hospitality organisations in Henan Province, China. Multilevel structural equation modelling (MSEM) was employed to validate the model. The results showed that team-focused TFL promoted team service innovation via developmental culture while individual-focused TFL promoted employee service innovative behaviour via creative self-efficacy. Group openness diversity concurrently moderated the relationship between developmental culture and team service innovation, and the relationship between individualfocused TFL and creative self-efficacy. Enlightened by the research findings, theoretical and practical implications are drawn.