Innovative work behavior driving Indian startups go global – the role of authentic leadership and readiness for change

Abstract

Purpose: The purpose of the study was to find out the effect of authentic leadership on innovative work behavior among employees in the context of Indian startups that have gone global in the past one decade. The study also aimed to investigate the mediating effect of one organizational-level variable, i.e. organizational climate and one individual-level variable, i.e. readiness for change on the direct relationship between authentic leadership and innovative work behavior. Design/methodology/approach: The study used survey method with a sample of 261 employees working in Indian startups that have gone global in the past one decade. Authentic leadership, organizational climate, readiness for change and innovative work behavior were measured using standardized questionnaires. Findings: Structural equation modeling revealed that authentic leadership had significant direct effect on innovative work behavior and this effect was mediated by readiness for change. However, organizational climate had no significant effect. Practical implications: The findings of the study have important implications for startups that employ millennials as employees and have plans to go global. Millennials have very different characteristics in the workplace and they regard authenticity in the leader very highly. Since they are assertive and they question everything, it becomes imperative for founder-leaders to exhibit authenticity in their actions, words and thoughts. Originality/value: This is the first study in the context of Indian startups that have gone global by taking important variables of authentic leadership, readiness for change and innovative work behavior.