Abstract

This research aimed to investigate the effect of inclusive leadership (IL) on employee innovative work behavior (IWB) in commercial banks operating in the territory of Azad Jammu and Kashmir (AJK), Pakistan. “Besides, it examined the impact of the mediating role of vigor at workplace in the relationship between IL and IWB. Furthermore, this study also investigated the moderating effect of challenge-related stress in the relationship between vigor at workplace and IWB.This study utilized quantitative research design and primary data were collected from 353 employees of the banking sector across AJK, Pakistan, using a questionnaire survey. Data were collected in 2-time lags of 6 months. The collected data were analyzed by conducting structural equational modeling (SEM) using AMOS-24.” Mediation and moderation analyses were performed using Hayes’ (2013) process macro.The results reveal a significant positive effect of IL on IWB and significant mediation of vigor at workplace between the relationship of IL and IWB. Moreover, this relationship gets stronger in the presence of challenge-related stress as a moderator. Few past studies have highlighted the effect of IL on IWB, but this is the only study that has examined the mediation effect of vigor at workplace and moderation effect of challenge-related stress, together in a single research model.

Key words: Inclusive Leadership; Innovative Work Behavior; Vigor at Workplace; Challenge-Related Stress