Does transactional leadership count for team innovativeness? : The moderating role of emotional labor and the mediating role of team efficacy

Purpose – Drawing on the contingency perspective of leadership, the purpose of this paper is to examine the relation between transactional leadership and team innovativeness by focusing on the moderating role of emotional labor and the mediating role of team efficacy. The authors propose and empirically test the hypothesis that the relation between transactional leadership and team innovativeness is negative when the level of emotional labor is high whereas the relation is positive when the level of emotional labor is low. The authors further examine the process mechanism of this interactive effect by testing the mediating role of team efficacy. Design/methodology/approach – In total, 90 Chinese work teams, comprising 462 members and 90 team leaders, were surveyed. Hierarchical regression analyses were performed and moderated causal steps approach applied to test the authors' mediated moderation model. Findings – As predicted, transactional leadership was negatively associated with team innovativeness when emotional labor was high whereas the association was positive when emotional labor was low. Team efficacy mediated the interactive effects of transactional leadership and emotional labor on team innovativeness. Research limitations/implications – The paper contributes to the contingency perspective on transactional leadership and team innovativeness by identifying emotional labor as an important moderator and team efficacy as a critical mediator, yet methodological limitations do exist in the study. Although data were collected from multiple sources to avoid common method variance, the design was cross‐sectional, which limits the authors' ability to make robust inferences of causality. Originality/value – By examining both the moderating and mediating effects, the paper contributes to uncovering the black box in which transactional leadership exerts an influence on team innovativeness.