IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i17p7931-d1741419.html

Advancing Sustainable Innovation: The Role of Transformational Leadership and Organizational Innovation Climate in Shaping the Innovative Behavior of Knowledge-Based Employees in High-Tech Enterprises in China

Author

Listed:
  • Chen Chen

    (Faculty of Business, INTI International University, Nilai 71800, Malaysia)

  • Sarfaraz Ali Khan

    (Faculty of Business, INTI International University, Nilai 71800, Malaysia)

Abstract

This research investigates how transformational leadership affects the innovative behavior of knowledge-based employees in Chinese high-tech enterprises, highlighting the mediating role of organizational innovation climate. It aims to reveal how leadership shapes innovation-supportive climates to stimulate employee innovative behavior and strengthen organizational sustainable innovation. Using a questionnaire survey of 441 knowledge workers from 10 high-tech firms across four Chinese provinces, this study applies structural equation modeling (SEM) to test both the direct effect of transformational leadership on employee innovative behavior and its indirect effect via organizational innovation climate. The transmission effect of employee innovative behavior on sustainable innovation was also analyzed. Results indicate that transformational leadership significantly promotes employee innovative behavior directly and indirectly through organizational innovation climate. By fostering a supportive climate, leadership enhances employee enthusiasm for innovation, which in turn drives sustainable innovation. These findings provide contextual evidence of leadership’s role in shaping innovative behavior and long-term organizational outcomes in emerging economies. This study builds a cross-level framework of “transformational leadership—organizational innovation climate—employee innovative behavior—organizational sustainable innovation,” integrating four theories. It extends theoretical links between employee behavior and sustainable innovation, emphasizes the overlooked mediating role of organizational climate, and offers practical guidance for knowledge-intensive enterprises seeking to enhance sustainable innovation.

Suggested Citation

  • Chen Chen & Sarfaraz Ali Khan, 2025. "Advancing Sustainable Innovation: The Role of Transformational Leadership and Organizational Innovation Climate in Shaping the Innovative Behavior of Knowledge-Based Employees in High-Tech Enterprises in China," Sustainability, MDPI, vol. 17(17), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:17:p:7931-:d:1741419
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/17/7931/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/17/7931/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ying Yue & Woon Leong Lin & Houng Chien Tan, 2025. "Unlocking employee creativity: ethical leadership, employee voice behavior and innovation climate in the era of intelligent manufacturing in China," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 21(7), pages 1440-1465, May.
    2. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    3. Praveen Kumar Saxena & Arumugam Seetharaman & Girija Shawarikar, 2024. "Factors That Influence Sustainable Innovation in Organizations: A Systematic Literature Review," Sustainability, MDPI, vol. 16(12), pages 1-25, June.
    4. Francisco Javier Lloréns Montes & Antonia Ruiz Moreno & Luis Miguel Molina Fernández, 2004. "Assessing the organizational climate and contractual relationship for perceptions of support for innovation," International Journal of Manpower, Emerald Group Publishing Limited, vol. 25(2), pages 167-180, March.
    5. Wiweko Probojakti & Hamidah Nayati Utami & Arik Prasetya & Muhammad Faisal Riza, 2024. "Building Sustainable Competitive Advantage in Banking through Organizational Agility," Sustainability, MDPI, vol. 16(19), pages 1-15, September.
    6. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    7. Elahe Hosseini & Saeid Saeida Ardekani & Mehdi Sabokro & Aidin Salamzadeh, 2022. "The study of knowledge employee voice among the knowledge-based companies: the case of an emerging economy," Revista de Gestão, Emerald Group Publishing Limited, vol. 29(2), pages 117-138, January.
    8. Inigo, Edurne A. & Albareda, Laura, 2019. "Sustainability oriented innovation dynamics: Levels of dynamic capabilities and their path-dependent and self-reinforcing logics," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 334-351.
    9. Martha S. Feldman, 2000. "Organizational Routines as a Source of Continuous Change," Organization Science, INFORMS, vol. 11(6), pages 611-629, December.
    10. Xie, Yongping & Xue, Wei & Li, Ling & Wang, Anmin & Chen, Yong & Zheng, Qianlin & Wang, Yayun & Li, Xinjuan, 2018. "Leadership style and innovation atmosphere in enterprises: An empirical study," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 257-265.
    11. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    12. Wen Zhang & Xiaoshuang Zeng & Huigang Liang & Yajiong Xue & Xuanze Cao, 2023. "Understanding How Organizational Culture Affects Innovation Performance: A Management Context Perspective," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiao Zhang & Luqun Xie & Jiatao Li & Li Cheng, 2022. "“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 709-722, June.
    2. Cheng Mei Tung, 2018. "Vertical integration for smart manufacturing-The dynamic capability perspective," Journal of Advances in Technology and Engineering Research, A/Professor Akbar A. Khatibi, vol. 4(2), pages 70-78.
    3. Anja Schulze & Stefano Brusoni, 2022. "How dynamic capabilities change ordinary capabilities: Reconnecting attention control and problem‐solving," Strategic Management Journal, Wiley Blackwell, vol. 43(12), pages 2447-2477, December.
    4. Pedota, Mattia & Cicala, Francesco & Basti, Alessio, 2025. "Human agents, generative AI, and innovation: A formal model of hybrid creative process," Technovation, Elsevier, vol. 148(C).
    5. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    6. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    7. Shah, Tushar R., 2022. "Can big data analytics help organisations achieve sustainable competitive advantage? A developmental enquiry," Technology in Society, Elsevier, vol. 68(C).
    8. Wolfgang H. Güttel & Stefan Konlechner & Barbara Müller, 2012. "Entscheidungsmuster und Veränderungsarchitekturen in Wandelprozessen: Eine Dynamic Capabilities-Perspektive," Schmalenbach Journal of Business Research, Springer, vol. 64(6), pages 630-654, September.
    9. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.
    10. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    11. Schriber, Svante & Löwstedt, Jan, 2020. "Reconsidering ordinary and dynamic capabilities in strategic change," European Management Journal, Elsevier, vol. 38(3), pages 377-387.
    12. Forliano, Canio & Ferraris, Alberto & Bivona, Enzo & Couturier, Jerome, 2022. "Pouring new wine into old bottles: A dynamic perspective of the interplay among environmental dynamism, capabilities development, and performance," Journal of Business Research, Elsevier, vol. 142(C), pages 448-463.
    13. Tiberius, Victor & Stiller, Laura & Dabić, Marina, 2021. "Sustainability beyond economic prosperity: Social microfoundations of dynamic capabilities in family businesses," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    14. Li, Zhijun & Zhang, Runze & Li, Qingyi & Wang, Yuchen, 2025. "How does a closed social network facilitate the impact of blockchain on corporate digital innovation performance?," Journal of Business Research, Elsevier, vol. 191(C).
    15. Tortora, Debora & Chierici, Roberto & Farina Briamonte, Massimiliano & Tiscini, Riccardo, 2021. "‘I digitize so I exist’. Searching for critical capabilities affecting firms’ digital innovation," Journal of Business Research, Elsevier, vol. 129(C), pages 193-204.
    16. Mazzucchelli, Alice & Chierici, Roberto & Abbate, Tindara & Fontana, Stefano, 2019. "Exploring the microfoundations of innovation capabilities. Evidence from a cross-border R&D partnership," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 242-252.
    17. Jianhong Huang & Raja Nerina Raja Yusof & Azmawani Abd Rahman & Rozanah Ab Rahman, 2026. "The Antecedents and Outcomes of Dynamic Capabilities in Digital Transformation: A Study of Chinese Manufacturing Companies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 642-669, February.
    18. Vladislav Maksimov & Stephanie Lu Wang & Shipeng Yan, 2022. "Global connectedness and dynamic green capabilities in MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 723-740, June.
    19. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.
    20. Ng, Stephen C.H. & Rungtusanatham, Johnny M. & Zhao, Xiande & Lee, T.S., 2015. "Examining process management via the lens of exploitation and exploration: Reconceptualization and scale development," International Journal of Production Economics, Elsevier, vol. 163(C), pages 1-15.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:17:p:7931-:d:1741419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.