The importance of innovation within organizations has been demonstrated on numerous occasions, which has subsequently led to the identification of effective leadership as a potential catalyst. Most of us would acknowledge that effective leadership plays a pivotal role to engender innovativeness among nursing staff. Although research has identified some leadership styles to foster a nurse's innovative work behavior, a comprehensive model explaining the effect of transformational leadership on nurses' innovative work behavior is still unclear. This research built and tested a theoretical model linking transformational leadership and innovative work behavior via several intervening variables. Data were collected from 587 nurses and 164 doctors (nursing supervisors) through structured questionnaires from public sector hospitals in Pakistan. Results of the study indicated that, as anticipated, transformational leadership positively affected psychological empowerment of nurses, which in turn influenced both intrinsic motivation and knowledge sharing behavior. These latter two variables then had a positive influence on innovative work behavior. Empowerment role identity moderated the link between transformational leadership and psychological empowerment, whereas willingness to rely on leader (reliance-based trust) and willingness to share sensitive information with leader (disclosure-based trust) moderated the connection between knowledge sharing behavior and innovative work behavior. These results imply that transformational leadership through psychological empowerment, knowledge sharing, and intrinsic motivation fosters nurse's innovative work behavior. The results also show that the relationship between transformational leadership and innovative work behavior is stronger among nurses who frequently share their knowledge about best practices and mistakes with co-workers.
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