LAUSR

Purpose The purpose of this paper is to establish the relationship between psychological empowerment (PE) and four variables: autonomy, openness, superior-subordinate relationship (SSR), and climate of innovation (CI). The paper also aims to establish the mediating effects of SSR and CI on PE. Design/methodology/approach The sample size for the study was 319 employees (197 managers and 122 team leaders) from ten leading information and communication technology companies of India. Structural equation modelling was used to test the model under study. Bootstrapping was applied to provide better estimation of the sample. Findings The exogenous variables under study were autonomy and openness. The mediating variables were SSR and CI. Results supported the model and indicated a significant direct effect between exogenous variables and PE. The role of SSR and CI as mediator was also ascertained. Practical implications The paper highlights that the managers of service organisations should take initiatives to provide a conducive climate for innovation. Having the right climate for innovation and support from superiors will make employees feel psychologically empowered. Originality/value Although as researchers and as practitioners the authors understand the importance of innovation climate and role of superior, few studies have sought to explain the mediating effects of SSR and CI.