Relationship between transformational leadership, proactive personality, creative self-efficacy and employee creativity at food processing SMEs in Indonesia

PurposeThis study aims to determine the effect of transformational leadership and creative self-efficacy (CSE) on employee creativity. In addition, this study will also discuss the role of CSE as a mediator in the relationship between transformational leadership and employee creativity, and the role of proactive personality as a moderator in the relationship between CSE and employee creativity.Design/methodology/approachThe research samples were 102 supervisors and 876 employees from 102 small and medium-sized enterprises (SMEs) engaged in the food processing industry in three major cities in Central Java, Indonesia, namely Semarang, Salatiga and Surakarta. SPSS 22 was used to test the research hypothesis using hierarchical regression analysis.FindingsThe results showed that CSE mediated the relationship between transformational leadership and employee creativity. In addition, the results also showed that proactive personality acted as a moderator for CSE and employee creativity.Research limitations/implicationsThis study has several limitations. First, that the sample size is limited only to food processing SMEs. Second, questionnaires were self-reported by respondents. Self-reporting may not always result in reliable and accurate responses. Lastly, this study uses a cross-sectional research design.Practical implicationsThis study presents strong theoretical and managerial implications that can be used by food processing SMEs to evaluate the consequences of transformational leadership, proactive personality, and CSE on employee creativity.Originality/valueThis study adds to the existing literature by describing the relationship between transformational leadership, CSE, proactive personality and employee creativity in a comprehensive manner.