Muhammad Anwar

The worldwide banking industry is currently undergoing a digital transformation. The innovative behavior of bank employees is a significant aspect of commercial banks’ future survival and development. One of the most significant resources for cultivating good employee behavior is leadership. As a response, this study examined how authentic leadership affects employees’ innovative behavior. The mediating role of cognitive crafting and hope between authentic leadership and innovative employee behavior was also investigated. Using a quantitative approach, data were collected from 610 Thai bank employees. The structural equation modeling (SEM) analysis findings revealed an association between authentic leadership and innovative employee behavior. According to the mediation analysis results, hope and cognitive crafting appeared to mediate the relationship between authentic leadership and innovative employee behavior. These findings may help develop leadership research in the field of innovation management. Thus, organizations should identify, cultivate, and support authentic leaders who can inspire innovative behavior among employees through cognitive crafting and hope.