An Empirical Study of the Relationship among Leadership Style, Psychological Empowerment and Service Innovation

Leadership style in service enterprises can significantly affect service innovation. This paper takes psychological empowerment and staffs´ satisfaction as intermediary variables to study the relationship between leadership style and service innovation. We find that humane care and knowledge aid in leadership style can affect psychological empowerment and staffs´ satisfaction positively, leaders´ charm can affect staffs´ satisfaction positively, but exception management can reduce staffs´ satisfaction. Both psychological empowerment and satisfaction can have significant predictive power on service innovation. Therefore, the managers in service enterprise should carefully consider their own leadership style, pay attention to use human care and knowledge aid to promote service innovation.