Influence of Authentic Leadership on Employee Innovation and Creativity in Technology Companies in Pakistan

Purpose: The aim of the study was to assess the influence of authentic leadership on employee innovation and creativity in technology companies in Pakistan. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study explores the impact of authentic leadership on fostering innovation and creativity among employees within technology companies. Authentic leadership, characterized by transparency, ethical behavior, and genuine concern for employees, is found to significantly influence employee innovation and creativity. Leaders who exhibit authenticity create an environment of trust and psychological safety, encouraging employees to express new ideas and take risks without fear of retribution. Such leadership fosters a culture that values diverse perspectives and encourages experimentation, leading to increased innovation and creativity within the organization. Employees under authentic leaders feel empowered to think outside the box, collaborate effectively, and pursue novel solutions to complex problems. Consequently, technology companies benefit from enhanced adaptability, competitiveness, and long-term success as a result of nurturing authentic leadership practices within their organizational structure.


INTRODUCTION
Authentic leadership has emerged as a significant factor shaping organizational dynamics, particularly within technology companies where innovation and creativity are paramount.This leadership style, characterized by transparency, integrity, and a genuine concern for employees' well-being, has been found to have a profound impact on fostering an environment conducive to employee innovation and creativity.By promoting open communication, encouraging diverse perspectives, and empowering employees to take risks, authentic leaders create a culture that nurtures innovation and allows for the exploration of novel ideas.Moreover, the emphasis on authenticity cultivates trust and psychological safety among team members, which further stimulates creativity and willingness to experiment.In technology companies where staying ahead of the curve is imperative, authentic leadership serves as a catalyst for unlocking the full potential of employees and driving continuous innovation, ultimately positioning the organization for sustained success in a rapidly evolving landscape.
Employee innovation and creativity play pivotal roles in organizational success, especially in developed economies such as the USA, Japan, and the UK.Over the past few years, there has been a discernible trend towards prioritizing innovation within the workforce.In the USA, for instance, research indicates a sustained increase in investments in research and development (R&D) by businesses, underlining a steadfast commitment to fostering innovation (Smith, 2019).Similarly, in Japan, where innovation has historically been integral to economic growth, companies have been heavily investing in employee training programs designed to enhance creativity and problemsolving skills (Takahashi et al., 2018).These initiatives have been instrumental in driving the development of new products, services, and processes, thus contributing significantly to economic advancement.
In the UK, efforts to promote employee innovation have been exemplified by initiatives like the Innovation Voucher scheme, which encourages collaboration between businesses and research institutions to foster a culture of innovation (Nightingale et al., 2019).Moreover, surveys among UK businesses have revealed a positive correlation between employee engagement in innovation activities and organizational performance, underscoring the critical role of nurturing creativity within the workforce (García-Morales et al., 2020).These examples underscore the importance of promoting employee innovation and creativity as key drivers of economic growth and competitiveness in developed economies.
In developing economies, such as those in Southeast Asia and Latin America, there is a growing recognition of the importance of promoting employee innovation and creativity to drive economic growth.Countries like China and India have emerged as global innovation hubs, marked by a significant increase in R&D spending by both domestic and multinational companies (Luo et al., 2020).Governments in these regions are also implementing policies aimed at fostering innovation ecosystems, including incentives for businesses to invest in R&D and initiatives to enhance the skills of the workforce (Li & Lin, 2018).These endeavors reflect a concerted effort to leverage innovation as a catalyst for economic development and global competitiveness.
Furthermore, in Sub-Saharan economies, such as those in Africa, initiatives to promote employee innovation and creativity are gaining momentum.Countries like Kenya and Nigeria have witnessed a surge in entrepreneurship and innovation hubs, providing platforms for collaboration and knowledge exchange among startups and established businesses (Ndemo & Weiss, 2019) Additionally, there is a growing emphasis on improving education and skills development, particularly in STEM fields, to equip the workforce with the necessary tools for innovation (Egbetokun et al., 2018).These efforts underscore a shift towards recognizing the pivotal role of fostering a culture of innovation in driving economic growth and development across Sub-Saharan Africa.
In developing economies, the promotion of employee innovation and creativity serves as a critical driver of economic progress.In countries across Southeast Asia and Latin America, there is a growing emphasis on fostering innovation within the workforce to spur economic growth and enhance competitiveness in the global market.For instance, in countries like Brazil and Indonesia, governments are implementing policies aimed at encouraging entrepreneurship and innovation, including the establishment of innovation clusters and the provision of financial incentives for research and development activities (Boschma & Frenken, 2018).These initiatives are geared towards nurturing a conducive environment for creativity and innovation to thrive, ultimately contributing to sustainable economic development.
Similarly, in countries such as Ghana and Rwanda in Sub-Saharan Africa, there is a rising awareness of the importance of fostering innovation to drive economic transformation.
Governments are investing in initiatives to promote STEM education, provide support for startups and small businesses, and facilitate collaboration between the public and private sectors to stimulate innovation-led growth (Kuschminder et al., 2020).Moreover, the emergence of innovation hubs and technology incubators across the region is providing aspiring entrepreneurs with access to resources, mentorship, and networking opportunities, thereby fostering a culture of innovation and entrepreneurship.These efforts highlight the significance of empowering employees to innovate and create value, ultimately driving economic prosperity in developing economies.
In countries like Brazil and Kenya, there has been a significant focus on leveraging innovation to address pressing social and economic challenges.For instance, Brazil has implemented initiatives such as the "Startup Brasil" program, which provides funding and support for innovative startups in various sectors, including technology, healthcare, and agriculture (Oliveira & Ribeiro, 2021).
Similarly, Kenya has seen the emergence of innovation hubs like iHub, which serve as platforms for fostering collaboration, knowledge sharing, and entrepreneurship among local innovators (Waema & Katua, 2019).These initiatives highlight the growing recognition of the role of innovation in driving sustainable development and improving the livelihoods of people in emerging economies.
Furthermore, in countries like Malaysia and Nigeria, there is a concerted effort to promote innovation through policies aimed at enhancing research and development capabilities and fostering entrepreneurship.Malaysia's National Innovation Policy, for instance, aims to transform the country into a high-income nation driven by innovation and technology (Abdullah et al., 2018).
In Nigeria, the government has launched programs such as the Presidential Enabling Business Environment Council (PEBEC) to facilitate ease of doing business and encourage innovationdriven entrepreneurship (Adekola & Yekini, 2020).These efforts underscore the importance of creating an enabling environment for innovation to flourish, thus driving economic growth and prosperity in developing economies.
ISSN 2957-7284 (Online) Vol.9, Issue 2, pp 1 - Authentic leadership, characterized by self-awareness and relational transparency, plays a crucial role in fostering employee innovation and creativity within organizations.Leaders who exhibit self-awareness, acknowledging their values, strengths, and weaknesses, create an environment where employees feel encouraged to express their innovative ideas (Northouse, 2018).This selfawareness enables leaders to understand their impact on others and adapt their leadership approach to facilitate creativity and experimentation (Afsar et al., 2020).Moreover, relational transparency, characterized by honesty and openness in leadership interactions, establishes trust and psychological safety among employees, which are essential for fostering a culture of innovation (Karakas et al., 2018).When employees feel valued and respected by their leaders, they are more likely to engage in innovative behaviors and contribute novel ideas to the organization's success.
Additionally, authentic leaders demonstrate a genuine concern for the well-being and development of their employees, further enhancing their ability to foster innovation (Carmeli & Spreitzer, 2019).By providing support, mentorship, and encouragement, authentic leaders empower employees to explore new avenues and take calculated risks in pursuit of innovative solutions (Avolio et al., 2018).This supportive environment encourages collaboration and creativity, as employees feel motivated to contribute their unique perspectives and talents to the organization's innovation efforts.Ultimately, organizations led by authentic leaders who prioritize self-awareness, relational transparency, and employee development are better positioned to drive meaningful innovation and achieve sustainable growth in today's dynamic business landscape.

Problem Statement
In recent years, technology companies have become increasingly reliant on innovation and creativity as key drivers of competitive advantage in rapidly evolving markets.However, despite the growing recognition of the importance of fostering innovation within these organizations, challenges persist in understanding the role of leadership in cultivating a culture of creativity among employees.One significant area that warrants investigation is the influence of authentic leadership on employee innovation and creativity within technology companies.Authentic leadership, characterized by qualities such as self-awareness, transparency, and genuine concern for employee well-being, has been shown to positively impact organizational outcomes across various industries (Avolio et al., 2018;Afsar et al., 2020).Yet, its specific effects on innovation and creativity in the context of technology companies remain relatively unexplored.
While there is a burgeoning body of research on leadership styles and their impact on organizational innovation, there is a gap in the literature regarding the unique influence of authentic leadership within the technology sector.As technology companies often operate in dynamic and fast-paced environments, understanding how authentic leadership practices can foster a culture of innovation and creativity is essential for sustaining competitive advantage and driving long-term success (Karakas et al., 2018).Therefore, this study aims to investigate the influence of authentic leadership on employee innovation and creativity in technology companies, with a focus on identifying the specific leadership behaviors and organizational conditions that facilitate or inhibit creative thinking and problem-solving among employees.

Transformational Leadership Theory
Originated by Bernard M. Bass and later expanded upon by James MacGregor Burns, transformational leadership theory emphasizes the leader's ability to inspire and motivate followers towards achieving shared goals through vision, charisma, and intellectual stimulation (Bass, 2018).This theory is relevant to the suggested topic as authentic leadership shares similarities with transformational leadership, particularly in terms of inspiring followers and fostering a culture of innovation (Avolio et al., 2018).Understanding how authentic leaders influence employee creativity and innovation within technology companies through transformational leadership behaviors can provide valuable insights for organizational effectiveness.

Social Learning Theory
Developed by Albert Bandura, social learning theory posits that individuals learn through observation, imitation, and modeling of behavior demonstrated by others in their social environment (Bandura, 2019).In the context of authentic leadership and employee innovation, social learning theory suggests that employees may observe and emulate authentic leadership behaviors associated with fostering creativity and innovation, such as openness to new ideas and supportive communication (Karakas et al., 2018).Exploring the mechanisms through which authentic leaders influence employee innovation and creativity through social learning processes can deepen our understanding of effective leadership strategies in technology companies.

Self-Determination Theory
Originated by Edward L. Deci and Richard M. Ryan, self-determination theory posits that individuals are motivated by the innate psychological needs for autonomy, competence, and relatedness (Deci & Ryan, 2018).In the context of authentic leadership and employee innovation, self-determination theory suggests that authentic leaders who support employees' autonomy, provide opportunities for skill development, and foster a sense of belonging can enhance intrinsic motivation for creative problem-solving and innovation (Afsar et al., 2020).Understanding how authentic leadership behaviors align with the principles of self-determination theory can shed light on the motivational mechanisms underlying employee creativity and innovation in technology companies.

Empirical Review
Zhang et al. ( 2017) conducted a comprehensive investigation into the influence of authentic leadership on employee innovation and creativity within the context of technology companies.The purpose of their study was to delve into the nuanced behaviors and practices of authentic leaders and their impact on the innovative capacity of their subordinates.Employing a mixed-methods approach, the researchers surveyed 300 employees from diverse technology firms, combining quantitative analysis through regression models with qualitative insights gathered from interviews with key leaders.Their findings illuminated a significant positive correlation between authentic leadership behaviors-such as transparency, integrity, and empathy-and employee innovation.Notably, leaders who fostered a culture of openness, trust, and risk-taking were found to have a pronounced effect on unlocking the creative potential of their teams.Recommendations stemming from this study underscored the importance of organizational initiatives aimed at cultivating authentic leadership qualities through targeted training programs, coaching sessions, and leadership development activities.By nurturing authentic leadership behaviors at all levels of the organization, companies could create an environment conducive to fostering employee creativity and innovation.
Wang and Li's (2018) research sought to deepen our understanding of the relationship between authentic leadership and employee innovation by investigating the mediating role of psychological empowerment within technology companies.Their study, which engaged 250 employees through surveys and employed advanced statistical techniques such as structural equation modeling, revealed intriguing insights into the underlying mechanisms through which authentic leadership influences innovative behaviors.The findings showcased that authentic leaders, by embodying traits such as humility, integrity, and relational transparency, not only directly inspire innovation but also indirectly foster it by empowering their subordinates psychologically.Specifically, the study uncovered that employees who perceive their leaders as authentic experience heightened levels of psychological empowerment, characterized by feelings of autonomy, competence, and meaningfulness in their work, which, in turn, fuels their creative endeavors.Building upon these findings, the study recommended that technology companies prioritize the cultivation of authentic leadership qualities among their managerial cadre while simultaneously fostering an organizational culture that emphasizes employee empowerment.Such concerted efforts, the researchers argued, are instrumental in unleashing the full innovative potential of employees and positioning companies for sustained competitive advantage in today's dynamic business landscape.
Liu and Chen (2019) embarked on a quest to explore the intricate interplay between authentic leadership, organizational climate, and employee innovation within the realm of technology companies.Their study, underpinned by a desire to uncover the contextual factors that either inhibit or facilitate innovation, embarked on a cross-sectional survey of 200 employees across multiple technology firms.By leveraging sophisticated statistical techniques such as hierarchical regression analysis, the researchers unearthed compelling evidence of the pivotal role played by authentic leadership in shaping the organizational climate-a key determinant of employee innovation.The findings underscored that authentic leaders, by virtue of their genuine and transparent leadership style, have a transformative effect on the organizational climate, fostering an environment characterized by trust, psychological safety, and a tolerance for experimentationall of which are conducive to nurturing innovation.Armed with these insights, the study advocated for targeted interventions aimed at fostering authentic leadership behaviors within technology companies while simultaneously championing initiatives that foster a supportive organizational climate.By doing so, organizations can create a fertile ground where creativity and innovation can flourish, propelling them towards sustained growth and success in today's hypercompetitive marketplace.Jiang et al. (2020) delved into the intricate dynamics surrounding authentic leadership and employee innovation within the unique context of technology companies, with a particular focus on the moderating role of trust in shaping this relationship.Grounded in the recognition that trust serves as a cornerstone of effective leadership, their study set out to explore how varying levels of trust influence the impact of authentic leadership on employee innovation.Drawing upon a sample of 150 employees from diverse technology firms, the researchers employed sophisticated statistical techniques, including moderated regression analysis, to unravel these complex dynamics.leadership and employee innovation is significantly amplified in environments characterized by high levels of trust.In such settings, employees feel psychologically safe to take risks, share ideas, and engage in creative problem-solving, thus unlocking their full innovative potential.Building upon these findings, the study underscored the critical importance of fostering trust within technology companies through transparent communication, consistent behavior, and a genuine commitment to employee well-being.By doing so, organizations can augment the impact of authentic leadership on innovation, propelling them towards sustained growth and competitive advantage in today's rapidly evolving business landscape.
Chen and Wang (2021) embarked on a scholarly exploration into the multifaceted relationship between authentic leadership, organizational learning culture, and employee innovation within the dynamic milieu of technology companies.Rooted in the recognition that organizational learning culture serves as a catalyst for innovation, their study sought to unravel how authentic leadership interacts with this broader cultural context to influence innovative behaviors among employees.Through a meticulously designed survey of 300 employees across various technology firms, coupled with sophisticated statistical analyses such as moderated mediation, the researchers unearthed intriguing insights.Their findings showcased that authentic leadership not only directly fosters employee innovation but also indirectly shapes it by nurturing an organizational learning culture characterized by experimentation, knowledge-sharing, and continuous improvement.Furthermore, the study revealed that an organizational learning culture strengthens the indirect effect of authentic leadership on innovation by enhancing employees' psychological empowerment-a key driver of innovative behaviors.Armed with these insights, the study advocated for a holistic approach to fostering innovation within technology companies, one that emphasizes the cultivation of authentic leadership qualities alongside the promotion of an organizational learning culture.By doing so, organizations can create an ecosystem that nurtures creativity, drives continuous innovation, and positions them for sustained success in today's fiercely competitive marketplace.Zhao et al. (2022) embarked on a scholarly expedition to unravel the intricate dynamics surrounding authentic leadership, team cohesion, and employee innovation within the dynamic ecosystem of technology companies.Rooted in the recognition that effective teamwork serves as a linchpin for innovation, their study sought to explore how authentic leadership interacts with team cohesion to foster innovative behaviors among employees.Through a meticulously designed study encompassing 20 teams across various technology firms, coupled with sophisticated statistical analyses such as multilevel modeling, the researchers unearthed intriguing insights.Their findings illuminated that authentic leadership not only directly fosters employee innovation but also interacts synergistically with team cohesion to amplify its impact.Specifically, the study revealed that cohesive teams, under the guidance of authentic leaders who embody traits such as integrity, empathy, and humility, exhibit heightened levels of innovation-characterized by enhanced knowledge-sharing, collective problem-solving, and a spirit of collaboration.Building upon these findings, the study advocated for a concerted focus on nurturing team cohesion within technology companies, alongside the cultivation of authentic leadership qualities.By fostering a cohesive team environment where trust, mutual respect, and open communication prevail, organizations can unlock the full innovative potential of their workforce, propelling them towards sustained growth and success in today's dynamic business landscape.Li et al. (2023) embarked on a longitudinal odyssey to explore the enduring impact of authentic leadership on employee innovation within the ever-evolving landscape of technology companies.Recognizing that innovation is not a momentary flash but a sustained journey, their study spanned three years and sought to unravel how authentic leadership behaviors exhibited by leaders at the onset of the study shape the trajectory of employee innovation over time.Through a meticulously designed longitudinal study encompassing

METHODOLOGY
This study adopted a desk methodology.A desk study research design is commonly known as secondary data collection.This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research.Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Conceptual Gap:
While the studies collectively explore the relationship between authentic leadership and employee innovation, there's a need to delve deeper into the specific mechanisms through which authentic leadership fosters innovation.For instance, understanding the cognitive processes or interpersonal dynamics involved in translating authentic leadership behaviors into tangible innovative outcomes could provide valuable insights for theory development in this area.
Contextual Gap: Most of the studies focus on technology companies, indicating a contextual bias towards this industry.There's a lack of research exploring the impact of authentic leadership on innovation in other sectors such as healthcare, finance, or manufacturing.Investigating how the dynamics between authentic leadership and innovation vary across different organizational contexts could offer a more comprehensive understanding of their relationship.

Geographical Gap:
The majority of the studies appear to be conducted in Asian contexts, particularly China, South Korea, and Latin America.There's a geographical gap in terms of exploring the relationship between authentic leadership and innovation in other regions such as North America, Europe, or Africa.Examining how cultural factors and institutional frameworks influence this relationship across diverse geographical contexts could provide valuable insights into its generalizability and applicability.

Conclusion
The empirical studies conducted on the influence of authentic leadership on employee innovation and creativity in technology companies collectively underscore the significant role that authentic leadership behaviors play in fostering a culture of innovation and creativity within organizational settings.Through meticulous investigation utilizing diverse methodologies, ranging from quantitative surveys to qualitative interviews, these studies have consistently demonstrated a positive relationship between authentic leadership and employee innovation outcomes.Leaders who exhibit authenticity, transparency, and trustworthiness are found to inspire and empower their teams, thereby enhancing employees' willingness to take risks, think creatively, and contribute novel ideas to organizational processes.
Furthermore, the research highlights the importance of contextual factors such as organizational climate, team cohesion, and governance mechanisms in moderating the impact of authentic leadership on innovation outcomes.Studies have shown that creating a supportive organizational climate, promoting team cohesion, and integrating gender diversity efforts with robust governance structures can amplify the positive effects of authentic leadership on employee innovation and creativity.Moreover, cross-national and cross-cultural comparisons have revealed variations in the strength and nature of the relationship between authentic leadership and innovation, emphasizing the need for tailored strategies that account for specific socio-economic, cultural, and institutional contexts.
Overall, these findings have significant implications for both theory and practice, suggesting that fostering authentic leadership qualities should be prioritized in technology companies seeking to cultivate a dynamic and innovative workforce.Organizations can benefit from investing in leadership development programs, promoting inclusive and supportive work environments, and leveraging the diverse perspectives of their teams to drive innovation and competitive advantage in today's rapidly evolving technological landscape.By embracing authentic leadership principles, technology companies can unlock the full potential of their employees, nurture a culture of continuous innovation, and position themselves for long-term success in the digital age.

Recommendation
The following are the recommendations based on theory, practice and policy:

Theory
Conduct additional studies to delve deeper into the underlying mechanisms through which authentic leadership influences employee innovation and creativity in technology companies.Explore how specific authentic leadership behaviors (e.g., transparency, integrity) impact different facets of innovation processes (e.g., idea generation, implementation

Policy
Advocate for the inclusion of authentic leadership principles in corporate governance guidelines and regulations.Encourage companies to consider authentic leadership qualities when selecting and evaluating board members, executives, and senior leaders.Provide government funding and support for leadership development initiatives aimed at promoting authentic leadership practices in technology companies.Offer incentives or tax breaks for companies that invest in leadership training programs focused on fostering innovation and creativity.Establish industry-wide standards and best practices for authentic leadership in technology companies.Encourage industry associations and professional organizations to develop guidelines and resources for companies to promote authentic leadership behaviors and create cultures of innovation. .
https://doi.org/10.47672/ajlg.18453 Sohail, et al., (2024) ). Integrate the concept of authentic leadership into existing theoretical frameworks of innovation and creativity, such as the innovation process model or the creative process model.Investigate how authentic leadership interacts with other factors (e.g., organizational culture, individual characteristics) to facilitate or hinder innovation outcomes.Develop and implement leadership development programs that focus on cultivating authentic leadership qualities among managers and executives in technology companies.Provide training and coaching sessions to enhance leaders' self-awareness, emotional intelligence, and ethical decision-making skills.Foster an inclusive and supportive organizational culture that values authenticity, diversity, and psychological safety.Encourage open communication, constructive feedback, and collaboration among employees to foster a culture of trust and experimentation conducive to innovation.Establish recognition and reward systems that acknowledge and celebrate innovative contributions from employees at all levels of the organization.Recognize and reward not only successful outcomes but also efforts and initiatives that demonstrate creativity and risktaking.ISSN 2957-7284 (Online) Vol.9, Issue 2, pp 1 -13, 2024 www.ajpojournals.org https://doi.org/10.47672/ajlg.184510 Sohail, et al., (2024)