Team-member exchange and innovative work behaviour The role of psychological empowerment and creative self-efficacy

Purpose In the context of team's influence on its members, this paper aims to investigate the effects of team-member exchange (TMX) on members' innovative work behaviour (IWB). The current study presents a moderated mediation model and examines the mechanisms and conditions involved in TMX-IWB relationship. Design/methodology/approach A quantitative research methodology was adopted where 156 engineering and management students (grouped into 33 teams) were given a task in the form of an assignment to be completed in three weeks' timeframe. Post task, perceptions about TMX and IWB of members were captured using a questionnaire and the innovative output of each team was assessed using multi-rater technique. Findings Psychological empowerment fully mediates TMX's effect on team member's IWB. Furthermore, the results indicate that creative self-efficacy moderates the mediated path from TMX to IWB via psychological empowerment. The mediating effect of psychological empowerment is stronger when creative self-efficacy of a team member is higher. Furthermore, the relation between group-level innovative behaviour and the team's innovative output has been established. Originality/value The current research has contributed to the limited literature on team performance and management. This paper has uniquely investigated psychological empowerment in the context of TMX and IWB. The paper has encapsulated the theoretical and practical underpinnings of the mediated effect of psychological empowerment on team members' innovation-oriented behaviour.