The effect of transformational leadership on nonfamily international intrapreneurship behavior in family firms: the mediating role of psychological empowerment

Abstract

Purpose The study aims to reveal the effects of transformational leadership on nonfamily employee international intrapreneurship with the mediating role of psychological empowerment. Design/methodology/approach The study sample consists of 379 employees at 132 family export and import firms in Ho Chi Minh City of Vietnam. The data is analyzed by a partial least squares structural equation modeling (PLS-SEM). Findings The paper reveals that transformational leadership had a positive and significant influence on nonfamily employee international intrapreneurship. The effect of transformational leadership on international intrapreneurship is strongly mediated by psychological empowerment. Practical implications Family firms would have to form the architecture and mechanisms for supporting the dedication of nonfamily international intrapreneurship actions with transformational leadership and psychological empowerment. Originality/value The paper grants the driving mechanism of the transformational leadership on nonfamily employee international intrapreneurship through the mediating role of employee psychological empowerment in the context of family businesses in an emerging market.