ISSN: 2222-6990
Open access
This study aims at an analysis of the impact of transformational leadership, Sustainable Human Resource Management (Sustainable HRM) practices, and employee retention factors in the Saudi private sector via the mediation of innovative work behavior (IWB). Based on Social Exchange Theory, the study suggests that supportive leadership and sustainability aspects of HR practices motivate employees to act innovatively, thus reinforcing their commitment to stay. The quantitative cross-sectional study used data from 384 members of staff in medium and large private organizations in Saudi Arabia. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the proposed relations. The results demonstrate that transformational leadership (? = 0.441, p < 0.001) and Sustainable HRM practices (? = 0.464, p < 0.001) have positive and significant influence on innovative work behavior which in turn has a positive and significant influence on employee retention (? = 0.506, p < 0.001). Conversely, the direct link of transformational leadership and Sustainable HRM practices to the employee retention was not statistically significant. The mediation analysis showed that the mediation effect is indirect, significant, and unique for transformational leadership (? = 0.223, p < 0.001) and Sustainable HRM practices (? = 0.235, p < 0.001) through innovative work behavior. The study's value to the literature lies in the integration of leadership and Sustainable HRM perspectives in one single model and in the fact that innovative work behavior is proposed as a behavioral mechanism through which organizational support is expected to lead to higher employee retention. The results indicate the need to establish supportive, developmental and innovative work environment in Saudi organizations.
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