Transformational Leadership as a Moderator of the Relationship between Openness to Experience and Innovative Work Behavior among Startup Employees in Indonesia

Abstract

Innovative work behavior is vital for startup competitiveness in dynamic environments. This study examined the effect of openness to experience on innovative work behavior and investigated the moderating role of transformational leadership among Indonesian startup employees. Using a quantitative cross-sectional design, data were collected from 161 purposively sampled employees via the Innovative Work Behaviour Scale, the NEO-FFI (Openness dimension), and the MLQ Form 5X, then analyzed using Moderated Regression Analysis (MRA). The results revealed that openness to experience positively and significantly predicted innovative work behavior. However, transformational leadership significantly moderated this relationship in a negative direction stronger transformational leadership weakened the positive effect of openness to experience. These findings suggest that in startup settings prioritizing flexibility and autonomy, open employees innovate more effectively when granted independent discretion rather than intensive leadership direction. This study extends organizational psychology literature by showing that transformational leadership does not universally enhance innovation; its effectiveness hinges on the alignment between leadership style and employee personality traits.