Employee empowerment, engagement, leader member exchange and innovative work behaviour among employees in manufacturing firms in Nairobi, Kenya

Abstract

In the globalized economies, innovation is recognized as a key determinant of the organization’s long-term sustainability, productivity, and development. Previous researchers have acknowledged the important role which empowerment of employees’ plays in nurturing innovativeness. However, the link between employee empowerment and innovative work behaviour has mainly been examined in developed countries, yet understanding such a link from a developing country like Kenya is equally important. Additionally, the role of employee empowerment on innovative work behaviour (IWB) has not been exhaustively explored. Theory demonstrates that leader-member exchange (LMX) and employee engagement can enhance the relationship between employee empowerment and IWB. This study sought to contribute to this growing body of knowledge by exploring the effect of employee empowerment, engagement, LMX and IWB among employees in manufacturing firms in Nairobi, Kenya. The study was guided by eight specific objectives which sought to evaluate the effect of; employee empowerment on IWB, employee engagement on IWB, leader-member exchange on IWB, employee empowerment on employee engagement, the mediating effect of employee empowerment on IWB through employee engagement, the moderating effect of LMX on the relationship between employee empowerment and employee engagement, the moderating effect of leader-member exchange on the relationship between employee engagement IWB and the moderated mediation effect of LMX on the indirect effect of employee empowerment on IWB through employee engagement. The study was grounded in positivist paradigm and adopted the explanatory research design. The study was anchored on Innovative Systems Theory as the main theory supported by Social-Exchange theory, Kantar’s theory of structural empowerment and Self Determination Theory. The study targeted 23 manufacturing firms with a study population of 9915 employees. A sample size of 470 employees was selected based on Yamane’s formula of sample size determination. Stratified and systematic sampling techniques were used to select the required sample. Data were analysed using both descriptive statistics and inferential statistics. The descriptive statistics included means and standard deviations; while inferential statistics employed hierarchical linear regression and multiple regression analyses for hypothesis testing. The study revealed the following key findings: employee empowerment (β=.452, P=.001), employee engagement (β=.391, P=.001), and LMX (β=.188, P=0.001) had positive and significant effects on IWB; employee empowerment had a positive and significant effect on employee engagement (β=.507, P=.001); employee engagement partially mediated the relationship between employee empowerment and IWB (β=.260, CI=.178, .355) and that LMX had an antagonistic moderating effect on the relationship between employee engagement and IWB (β=-.093, P=.05, CI=.-.161,- .025). The study recommends that the management of manufacturing firms should adopt policies that take into account issues of employee empowerment, engagement and LMX practices in order to enhance employees’ innovative behaviour