Transformational Leadership, Absorptive Capacity and Innovative Work Behaviour: Case Study in the Ghanaian Hospitality Industry

This study examined the impact of transformational leadership on innovative work behaviour (IWB) among employees in Ghana’s hospitality sector. It also explored how organizational and employee absorptive capacity (AC) moderates the relationship between transformational leadership and innovative work behaviour. Data were randomly collected from 795 employees across star-rated hotels in the Volta Region of Ghana through structured questionnaires. The findings reveal that transformational leadership significantly impacts employees’ innovative work behaviour. In addition, organizational and employee absorptive capacity significantly moderate the transformational leadership and innovative work behaviour relationship (albeit negatively for organizational absorptive capacity). Therefore, hospitality managers can exhibit higher levels of inspiration and support to their employees to generate innovative activities and outcomes. Also, firms can implement appropriate structures that foster knowledge exploration, acquisition and application at the employee level. This is because it enhances employee innovative work behaviour, especially in the presence of a transformational leadership style.