Creativity and innovation through LMX and personal initiative

Purpose The purpose of this paper is to determine empirically the influence of leader-member exchange (LMX) on employees' creativity and innovation. In addition, this study investigated the moderating role of employees' personal initiative on the associations. Design/methodology/approach Data were gathered from 1,221 employees working in organizations across various industries in Australia. Findings The findings of this study revealed positive and significant relationships between LMX and employees' creativity and innovation. Also, the findings indicated employees' personal initiative moderated the LMX-employees' creativity and LMX-employees' innovation relationships. Practical implications Organizations should invest in LMX training and in the selection of leaders with this leadership style if their aim is to nurture and intensify employees' creativity and innovation. They also should invest in personal initiative training in order to amplify the effect of LMX on creativity and innovation in organization. Originality/value This study makes vital theoretical contributions in different ways. In the domain of creativity and innovation, it addresses factors that impact employees' creativity and innovation. It expands knowledge about organizational resources that nurture and enhance the creativity and innovation of employees. For LMX, this study supplements existing research by examining employees' creativity and innovation as outcomes. Also, identifying personal initiative as an amplifier of the LMX-employees' creativity and innovation relationships extends research in that domain. This study is also a rare investigation of the Australian context.