Authentic Leadership and Employees' Innovative Behaviour: A Multilevel Investigation in Three Countries.

The innovativeness of individual employees is a vital source of competitive advantage of firms, contributing to societal development. Therefore, the aim of this multilevel study was to examine how entrepreneurial firm owners' authentic leadership relates to their employees' innovative behaviour. Our conceptual model postulates that the relationship between business owners' authentic leadership (as perceived by their employees) and their employees' innovative behaviour is mediated by employees' personal initiative and their work engagement. Hypotheses derived from this model were tested on data collected from 711 employees working in 85 small firms from three European countries: the Netherlands, Poland, and Spain. The results of the multilevel modelling confirmed our model, showing that when business owners are perceived as more authentic leaders, their employees show higher personal initiative and are more engaged at work and, in turn, identify more innovative solutions to be implemented in the organization. A cross-national difference was observed: employees from Spain (in comparison to Dutch and Polish employees) reported engaging less frequently in innovative behaviour. These research findings suggest that the innovative behaviour of employees can be boosted through leadership training, improving the quality of relationships between leaders and subordinates, and strengthening employees' personal initiative and work engagement.

Finances and well-being: a dynamic equilibrium model of resources.

This study of 513 Dutch farmers tested a dynamic equilibrium model of resources (an extension of the conservation of resources theory; S. E. Hobfoll, 1989, 1998, 2001). With structural equation modeling, the advantages of a 3-wave longitudinal design were comprehensively used, such as addressing bidirectional causal effects and within-individual vs. between-individual change. This allowed for a careful analysis of the management function of resources in the stress process. Results showed that well-being had stronger within-person stability than finances. Increased levels of financial problems temporarily increased psychological distress but not self-reported illness. Conversely, farmers with higher stable baselines of psychological distress also had higher baselines of self-reported illness and experienced more negative changes in their financial situation.