How does authentic leadership drive hotel employees to innovate? A cross-level influencing process

The hotel industry's heightened awareness of environmental sustainability has underscored the importance of employees' innovative work behavior in driving corporate performance. This research employs the social exchange theory and conservation of resources theory to establish a cross-level framework for examining the complex correlation between authentic leadership and innovative work behavior. Valuable insights were obtained through data collection from 359 hotel employees and their leaders, representing 118 teams across six provinces in central China. The findings show that authentic leadership positively relates to innovative work behavior, and employee loyalty mediates the above linkage. Additionally, this research highlights the significance of psychological capital and innovation climate as moderators. These two factors strengthen the associations between authentic leadership and employee loyalty, as well as between employee loyalty and innovative work behavior, respectively. •Authentic leadership promoted innovative work behavior among hotel employees.•Employee loyalty positively mediated the relationship between authentic leadership and innovative work behavior.•The effect of authentic leadership on employee loyalty and employee loyalty on innovative work behavior depended on the moderating effects of psychological capital and innovation climate, respectively.