Innovative work behavior the role of participative leadership, external work contacts and self leadership skills in information technology service industry in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business

Bao Nghi

INNOVATIVE WORK BEHAVIOR:
THE ROLE OF PARTICIPATIVE LEADERSHIP, EXTERNAL WORK
CONTACTS AND SELF-LEADERSHIP SKILLS IN INFORMATION
TECHNOLOGY SERVICE INDUSTRY IN VIETNAM

MASTER OF BUSINESS (HONORS)
SUPERVISOR: Dr. TRAN PHUONG THAO

Ho Chi Minh City Year 2017

1


Abstract
The thesis investigates the correlation of participative leadership, external work contacts
and self-leadership skills on employee innovative work behavior (IWB) in information
technology service industry in Vietnam. Using a sample of 369 employees from 15 IT
service companies in Vietnam, the results showed that participative leadership, external
work contacts and self-leadership skills effects IWB positively. The empirical results also
suggested that participative leadership, external work contacts and self-leadership skills
are powerful motivational tools that may help employees to depict IWB.
Key words
Innovative work behavior, self-leadership skills, participative leadership, external work
contacts, information technology service industry, Vietnam.

3

Acknowledgement
I would like to explicit my sincere acknowledge to my supervisor, Dr. Tran Phuong Thao
for the insightful guidelines, valuable recommendations, and feedbacks during my
research time. This research could not be possible without her evaluation in each stage
which I spent.

My next appreciation also sends to participants of the survey. They are colleagues,
friends in many information technology companies in HCM city. They shared their time
to assist me to answer the questionnaire. All their contributions have helped me to have
the successful study.

2


TABLE OF CONTENTS
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
1. INTRODUCTION ....................................................................................................... 6
2. LITERATURE REVIEW AND HYPOTHESIS ..................................................... ..9
2.1 The effect of Participative leadership on IWB...................................................... .10
2.2 The effect of External Work contacts on IWB ...................................................... 11
2.3 The effect of self-leadership skills on IWB..............................................................12
3. METHODOLOGY .................................................................................................... 13
3.1 Procedure and Sample .............................................................................................13
3.2 Measurement scales................................................................................................ ..16

4. DATA ANALYSIS AND RESULT .......................................................................... 20
4.1 Measure validation .................................................................................................. 20
4.2 Confirmatory Factory Analysis (CFA) .................................................................. 26
4.3 Structural result.........................................................................................................29
4.4 Hypothesis testing..................................................................................................... 30
5. DISCUSSION ............................................................................................................. 32
5.1. Implications for managers ..................................................................................... 32
5.2. Conclusion ............................................................................................................... 34
5.3. Limitations and directions for future research..................................................... 35
APPENDIX A
4


APPENDIX B
REFERENCES

5


1.

Introduction

Innovation is one of vital factors leading the organization to success in business in the
long term. Indeed, it is a factor which brings competitive advantages for organizations to
survive and success in today business market through the development and
implementation of new ideas disclosed to products, processes and services (Anderson,
Potocnik, & Zhou, 2014; Lin & Liu, 2012).
IWB is the purpose establishment, debut, and applicant new concept for improving
productive processes, and product designs in organization (West & Farr, 1989). Hence,

IWB show a vital part in any organizations for their further development in our
challenging business environment. Innovation is a vital source for organization for
surviving in economy because of the change in technology, global competition and new
regulations. Thus, there is a need for examining all factors which increase the IWB for
employees (Argawal, 2014).
In the body of literature, there are different components, which aim to lead
business organization in motivating their employees for best outcomes include
participative leadership, external work contacts (Jong & Hartog, 2007), and selfleadership skills (Manz, 1992). Firstly, participative leadership is the leadership style in
which leaders give their employees the right to influence important decisions, design and
guide their own tasks by implement decision-making process (Yukl, 2002). Similarly,
participative leadership is found to enhance very positively IWB at working place
(Krause, 2004).
Secondly, external work contacts is the way of exchanging information for better,
and more expertise knowledge with other people outside of their organization, such as
customers, scientists, and professors. Indeed, Kimberly and Evanisko (1981) believed
6


that more communicating with external contacts is the main source to lead more
innovation at works for employees. So, there is a positive correlation between external
work and IWB (Perry-Smith & Shalley, 2003).
Thirdly, self-leadership skills are an important factor which influences IWB. Manz
(1992) stated that self-leadership skills are a development in which staff members inspire
and lead themselves in order to gain preferred manners and results. Organizations need to
improve self-leadership skills for their employees in order to bring back the best
performance. In addition, self-leadership skills are positively effect on IWB (Carmeli &
Weisberg, 2006).
There were many prior studies examined the impact of different styles of
leadership on IWB in a wide range of industries including information technology (IT)
service industry. However, in the context of developing country like Vietnam, there is

still a gap in research on leadership in a specific industry such as IT service industry.
Additionally, IT service industry is growing significantly in Vietnam with high
productivity. Moreover, Vietnam has become one of the most attractive nations where
foreign IT investors want to outsource their service, software render and solutions
because of low paid salary with high quality workforce. Additionally, according to the
report by the national workforce master plan (Vietnam lacks high-quality IT workforce,
2016), Vietnam needs to one million workers in IT industry by 2020 (Vietnam lacks
high-quality IT workforce, 2016). The main decisive human resources of IT service
industry are the programmers and IT engineers who make out software or new solutions
in order to bring revenue to company. Furthermore, the vast majority of IT workforce is
weak in term of skills such as self-study skills, negotiation skills and English proficiency.
In fact, the radical innovation requirements, quick adapting in advanced technology, and
7


dynamic environment are the main barriers, and real challenging for survival of IT
services organizations (Akram, 2016).
Hence, IWB in IT working environment could encourage their employees’
innovation for better performance in the market, where technological advancement and
global competition are the key things to success in IT industry. As a result, innovation is
a main task of organization. Additionally, organization also can reduce employee’s
turnover rate and saving budget for new employees training for long term business
development (Popescu & Popa, 2012).
Hence, the particular objective of the research is to address the correlation of selfleadership, participative leadership, and external work contacts on IWB in a context of an
developing country. In other words, the overall purpose of this research is to examine
some items affecting the IWB in IT service provider industry in Vietnam. Three specific
research objectives are shown as follow:
-

Examine the effect of participative leadership on IWB in the IT service industry in

Vietnam.

-

Examine the effect of external worked contacts on IWB in IT service industry in
Vietnam.

-

Examine the effect of self-leadership skills on IWB in IT service industry in
Vietnam.
In the study, target interviewees are employees who are working at IT service

industry in Vietnam. The result of the research will contribute to fill the gap of the
influences of different leadership on IWB within IT services industry in the context of
Vietnam. This empirical result also provide applicable source for managers used as
preference for services outsourcing making decision and assists managers in knowing
8


well the important of IWB into driving business more successfully through choosing
appropriated leadership style in Vietnam.
2. Literature review and hypothesis
The theory of individual innovation is to understand what innovative work behavior is
and how leader understands the phenomenon within the individual (Jong & Hartog,
2010). Similarly, according to Yi (2006), individual innovativeness helps to distinguish
passion employees towards particularly of subject or industry. Managers will identify
who is the true innovative employees and put them in the right position or tasks based on
their vision and future goals. Indeed, the eagerness of a person is to try out new
knowledge and material and the result of innovative motivation from managers to their

employees (Moore, 2002). Therefore, in order to deeply understand the vital of the
influences of leadership styles into IWB of employees within IT industry services, the
three factors namely participative leadership, external work contacts, and self-leadership
skills are examined.
Jong and Hartog (2010) stated that participative leadership allows employees to
get involved in making important decision with their supervisors. It means that
participative leadership has a very strong relationship with IWB. Secondly, external work
contacts also have employees to increase their innovation at working place, because it
allows employees to have a chance to communicate with the people outside the
organization from different industries. Finally, self-leadership skills are the combination
of behavioral and cognitive strategies which allow the employees to be rewarded for their
well performance and self-motivation for innovation enhancement (Houghton & Neck,
2002). Therefore, the IWB has a very strong relationship with three different components
such as participative leadership, external work contacts, and self-leadership skills.
9


Innovative work behavior is the goal of almost employers from a variety of
industries in various countries on over the world, as they realized how important to
leadership styles in encouraging their employees' innovation as well as bringing the better
development, and success of business. Indeed, the concepts discussed within this
literature part aim to figure out the relationship between IWB and its components as
given in the Figure 1 below:

Participative leadership
H1

H2

External work contacts

Behavior-focused
strategies
Natural reward
strategies

Innovative work
behavior

H3

Self-leadership skills

Constructive
thought patterns

Figure 1: Conceptual model
2.1. The effect of Participative leadership on IWB
According to Yukl (2002), the participative leadership is the process in which leaders
responsible for guiding, controlling, and then allowing their employees to join making
important decision with their leaders. When participate leadership is conducted by
leaders, there is an increasing concern and participate of employees (Sax and Torp,
2015). Indeed, leaders play a vital and significant role in managing efficiently the
working place environment, where the leaders might provide their employees with
sufficient amount of valuable information and feedbacks (Durham, Knight and Locke.
10


1997). Hence, the leader’s role is very important to motivate their employees for
enhancing the quality outcomes of team members. However, the leaders also guide their

employees their own task within certain limits. Moreover, Yukl (2002) also found that
participative leadership can take in forms such as conference, delegation and cooperative
determination making. Axtell et al. (2000) found that participation relate positively on
employees’ innovative behavior, and the level of the relationship is evaluated by selfratings of employees’ proposal and implementation attempts. Indeed, as a result,
employees will realize their valuable role in contributing for the development of the
organization. Moreover, employees also know they are respected from leaders for their
well performances. Hence, one hypothesis is proposed as below:
H1: IWB is being influenced positively by participative leadership.
2.2. The effect of External work contacts on IWB
The second component influencing IWB is external work contacts. Kimberly and
Evanisko (1981) and Kasperson (1978) stated that external work contacts are the positive
influences of external contacts on enhancing the motivation of employees. The external
contacts may be individuals or groups such as customers, professors or scientists
(Kimberly & Evanisko, 1981; Kasperson, 1978). In fact, through communication with
these external contacts, employees will receive more opportunities to motivate their
innovation at working place. Through communicating with external contacts, the
employees may interact with different point of views, and ideas from different people in
variety of industries. Hence, the people from outside of their company may help them
figure out the appropriate solution to enhance their innovation into working. In addition,
there is a connection between IWB and social interaction (Perry-Smith & Shalley, 2003).
Thus, the second hypothesis is proposed as below:
11


H2: IWB is being influenced positively by external works contacts
2.3. The effect of self-leadership skills on IWB
A process which motivates, leads, and guides employees to attain requisition behaviors,
and achieving qualified results is self-leadership. Similarly, Manz (1992) stated that selfleadership is an influence-related process in which individuals motivate and lead
themselves towards in order to achieve target behaviors and outcomes. Lathem and
Locke (1991) & Furtner and Rauthmann (2011) studied that self-leadership skills need

three complimentary cognitive, and behavior strategies in order to help employees
accomplished innovative motivation into their works, three following items are behaviorfocused strategies; natural reward strategies; and constructive thought pattern strategies.
First of all, behavior-focused strategies is a strategy in which the employees avoid
and correct mistakes as they occurred so that enhancing their self-consciousness and the
management of essential behaviors (Manz, 1992; Neck & Manz, 2007). Secondly, natural
rewards strategies are a strategy in which the employees received reward when
completing their tasks, through which the employees feel motivate and increase their
work performance (Manz, 1992; Neck & Manz, 2007). Lastly, Carmeli (2006) stated that
constructive thought pattern strategies is a strategy in which “individuals may alter their
thought patterns to create opportunities during hardest time, rather than thinking about
the difficulties came as unexpected obstacles”.
Therefore, based on these theories, the study suggests a positive effect of selfleadership skills on innovative behavior in the IT service technology industries.
H3: IWB is being influenced positively by Self-leadership skills.
In summary, participative leadership, external work contacts, and self-leadership
skills are three variables which expect to have positive influence on IWB. These factors
12


concentrate on bringing the better influence of different leadership style on creating the
innovation of employees at working place.

3. Methodology
3.1. Procedure and sample
In the thesis, the information technology service trading in Vietnam was chosen to
conduct in this study due to its highest potential dynamic market. Based on that situation,
a pilot study was conducted firstly to examine the feasibility of an approach for better
used in larger scale. Secondly, the main survey was conducted immediately after a pilot
study checked successfully.
Target respondents of this study are employees from IT firms, and technology
organization such as Harvey Nash Vietnam, KMS Technology Inc, Luvina Software JSC,

Intel JSC, Samsung Limited Company, Orientsoft, TMA Solutions, USOL Vietnam Co.,
Ltd. NTT Data Vietnam Co., Ltd., VMG Media, ELCOM Corp., HanelSoft, ITSOL, MK
Smart, Egame JSC... in order to ensure that our results is reflected accurately the
influence of IWB within IT firms.
In term of the questionnaire design, it was organized into two parts to obtain the
major information. The first part inquires respondent’s demographics detailed
information such as gender, age, income level. The information can be classified and
compare group of participants. In the second section of the questionnaire, ordinal scale is
used as a measurement with Likert scales, which were developed by previous
researchers, to adequately capture the domain of the constructs. It was developed as a
valid and reliable scale created Participative leadership (6 items) (Jong & Hartog, 2010),
13


External Work Contacts (5 items) (Jong & Hartog, 2010), IWB (5 items) (Kleysen &
Street, 2001), Self-leadership skills (12 items) (Jong & Hartog, 2010) including three
second-order constructs namely: behavior-focused strategies, natural reward strategies,
constructive thought patterns. In order to avoid responded bias, all concepts’ names was
eliminated from the questionnaire, total questions were displayed continuously in one
table. The details of the constructs are showed in table 1.
Regarding the sample size, this research requires the size of sample big enough to
ensure statistical significant. According to Hatcher et al. (1994), minimal sampling used
in statistical analysis should be equal to or greater than five times of number of
independent variables, and not less than 100 to generate reliable results.
n>=100 and n>= 5k (where k is the number of variables)
This study consisted of 28 variables, as result, the necessary sample size required
to run EFA should be: 28*5=140 observations.
The pilot survey was conducted firstly with qualitative survey, due to purpose of
verifying the right intention of respondents in doing main survey. The author wants to
test if the scale and questionnaires is suitable for conducting research in Vietnam.

Therefore, this pilot study was accommodated with 15 respondents only during first week
of May 2017, by using an In-depth Interview. Moreover, more questionnaires were
implicated for exploring more the insights from respondents that is the barrier of
quantitative survey.

Besides that, few screening questions would also be asked to

respondents to make sure they are in the right target group for participate this study. After
initiating the pilot survey, all the comments and suggestions from the interviewees were
gathered and modified by the author. Finally, the questionnaires for the main survey were
completed with 28 questions in total.
14


After conducting qualitative research, main survey including 400 questionnaire
forms was sent to respondents using mail survey and online survey methods for cost
consuming saving and convenient. The method allows many respondents to be surveys in
short time. The main survey was conducted from the last week of May 2017. The total
numbers of 400 respondents were selected from 15 IT service organizations in Vietnam
and the reason of choosing these companies is that they are big company and had a
particular contribution to Vietnam economy. The results showed that 393 participants
answered the questionnaires via email. After deducting 27 unqualified questionnaires
there were 369 samples selected. The deleted questionnaires including 12 questionnaires
incomplete and 15 questionnaires in which the participants have only one answer for all
questions.
Among 369 participants, there was a slight contrast amongst female and male IT
workers with 127 (34.41%) female IT employees and 242 (65.6%) male IT employees.
There were two age groups in this study: 237 (64%) IT employees who were from 22 to
30; and 132(36%) IT employees with the age from 31 to more than 35. Furthermore, the
overview result uncovered that 43 (11.6%) IT employees holding college level; 201

(54.5%) IT employees having bachelor level and 125 (33.9%) having advanced degree.
In term of the involvement in their working place, there were 133 (36.1%) respondents
having 1 to less than 3 year working in IT services industry, 236 (63.9%) respondents
having from 3 to more than 5 years in IT service industry.
To analyze the relationship among participative leadership, external works
contacts and self-leadership skills, the collected data was input into the SPSS software
version 20. Then, Cronbach's Alpha and Exploratory factor Analysis (EFA) would
indicate the validation and reliability of study measurement scales. At that point, CFA
15


was used to differentiate the measurement variables and reliably, it was reflected the
hypothesized latent variables. A structural equation modeling (SEM) with latent variables
was used for testing the sufficiency of the model and test the theories more accurately by
using AMOS software version 20.
3.2. Measurement scales
Six constructs were analyzed in this study including: Participative leadership, external
work contacts, self-leadership skill, behavior-focused strategies, natural reward
strategies, and constructive thought patterns. The designed main questionnaire was
utilized with the vast majority of the detail having been produced from various sources in
past branch of knowledge. In addition, the survey was pre-test with the participation from
few IT employees for enhancing the legitimacy, and clearness. The gathered information
from pre-test was not utilized as a part of the analysis of study. The scale items of each
factor as per the following:
 Participative leadership was measured by six items, borrowed from Jong
and Hartog (2010).
 External piece of work contacts were measured by five items which were
affected IWB of study of Jong and Hartog (2010).
 Behavior focused strategies were measured by four items which were
looked over 18 detail that influenced IWB of field of investigation of

Houghton and Neck (2002). The items were produced particularly for
Vietnamese condition in view of the results of the pilot study light
examination. The outcome from the pilot study show that the vital of
reluctance in administration essential behavioral abilities make worker need
to have some inventive matter to make their employment easily. For
16


instance, a respondent communicated her own supposition about their work
process as describe: "I deliberately have objective in set out toward my
endeavors; I progress in the direction of particular objective I have set for
myself". So that, after the four items were utilized: "I establish specific
goals for my own performance ", "When I do an assignment especially
well, I like to treat myself to something or activity I especially enjoy", "I
tend to get down on myself in my mind when I have performed poorly", "I
make a point to keep track of how well I'm doing at work".
 Natural reward strategies were measured by four items which were
borrowed from five items that influenced IWB (Houghton & Neck, 2002).
 Constructive though pattern strategies were measured by four items specific
which were borrowed from twelve items that influenced IWB of
investigation of Houghton and Neck (2002).
 Finally, innovative work behavior was measured by five items utilizing
from Kleysen and Street (2001). It demonstrated how regularly
representatives play out those imaginative work practices in their office.
All items were five-point Likert-sort scale running with 1 = strongly disagree and
5=strongly agree. The questionnaire was written initially in English. Afterward, another
questionnaire version was made in Vietnamese for all target respondents. From that point
onward, back interpretation was attempted to rearrange. The questionnaire was
comprised of three sections: individual selective information, main questions, and
demographic information.

17


Innovative
Work
Behavior

Innovative1

Innovative2

Innovative3
Innovative4
Innovative5

situation.
I often find chances to enhance a current
Kleysen
practice, machinery, product, service or work and Street
relationship.
(2001).
In my current job, I often perceive chances to
make a dicisive change of my objective,
branch, systems, or with clients.
In my current job, I focus to non-routine
issues in your work, division, or market place.
In my current job, I develop opinions or
explanations to address issues.
In my current job, I determine issue more

largely for achiving greater insight into them.

4. Data analysis and results
4.1. Measure validation
After information gathering was finished, the Statistical Package for Social Sciences
(SPSS) and SPSS AMOS 20.0 were utilized to break down. Firstly, the reliability tests
Cronbach's Alpha and EFA (exploratory factor analysis) were connected to the
information of the fundamental review (n=369) for directing a preparatory trial of the
reliability and validity of the scales to quantify the build. Furthermore, CFA
(Confirmatory factor analysis) was conducted to investigate if the model is fit.
Finally, SEM (structural equation modeling) is used to test the correlation between latent,
observed variables and hypotheses.
For the first running the Cronbach's alpha, the outcomes demonstrated that all of
Cronbach's alphas results of the scales were greater than 0.6 (from 0.790 to 0.937).
However, the correct of total correlation from Contact3 less than 0.3.
Table 2: Item-Total Statistics
Scale Mean
Scale
Corrected Cronbach's
if Item
Variance if Item-Total
Alpha if
Deleted Item Deleted Correlation Item Deleted
Contacts1

9.87

9.050
19

0.759

0.701


Table 1: Measurements
Variables
Code
Participative Leadership1
leadership
Leadership2
Leadership3
Leadership4
Leadership5
Leadership6
External
Work
Contacts

Contacts1
Contacts2
Contacts3
Contacts4
Contacts5

Behaviorfocused
strategies

Behavior1
Behavior2

Behavior3
Behavior4

Natural
reward
strategies

Reward1

Reward2

Reward3
Reward4
Constructive Constructive1
thought
pattern
Constructive2
strategies
Constructive3
Constructive4

Item
My manager requests for my idea.
My manager requests me to propose how to
complete tasks.
My manager asks me regarding vital changes.
My manager allows me impact choices about
future strategies.
My manager let employees to set their
objective and targets.

My manager allows me noticeable freely
implement new ideas and target
In my work I visit outside customers.
I keep relationship with proposed customers
of my company.
I visit meetings, trade fairs.
I interact to people from various firms in our
field.
I keep relationship with people from various
client, partner company.
I build particular targets for my own
performance.
When I do job specifically well, I like to treat
well to myself.
I easily get depression when I have operated
unsatisfactority.
I always have checkpoint in order to see thay
how well I am working.
I concentrate my thought on the acceptable
rather than the unacceptable attitude of my
work exercises.
I try to get busy with phenomenons and
people that inspiring me and helping me get
my fascinating behaviors.
When I have a choice, I try to work hard
rather than just trying to get it over with.
I explore out exercises in my work that I like
to do.
I use my inspiraition to picture myself doing
well on vital objectives.

Whenever I deal with challenging issues I
face, I have to talk to myself in my head.
I anticipate myself implement an objective
well before I do it.
I consider about my own judgements and
hypothesis whenever I face a chalenge
18

Reference
Jong and
Hartog
(2010)

Jong and
Hartog
(2010)

Houghton
and Neck
(2002).

Houghton
and Neck
(2002).

Houghton
and Neck
(2002).

Contacts2
9.82
8.651
0.758
0.693
Contacts3
9.03
10.580
0.127
0.939
Contacts4
9.82
8.810
0.779
0.692
Contacts5
9.76
8.591
0.765
0.691
As the results, the Contact3 correlation must be deleted for results completion.
Along these lines, the item was erased to run the second time of Cronbach's alphas. In the
second running, the outcomes were better due to the higher Cronbach's alphas (from
0.812 to 0.939) for six constructs, meaning all measures had good reliability.
Subsequently, these were fulfilled the prerequisite of inner consistency.
Table 3: Item-Total Statistics
Scale Mean
Scale
Corrected Cronbach's
if Item

Variance if Item-Total
Alpha if
Deleted Item Deleted Correlation Item Deleted
Contacts1
6.82
6.309
0.851
Contacts2
6.78
5.916
0.861
Contacts4
6.78
6.190
0.845
Contacts5
6.72
5.878
0.864
There are a few criteria to test the factorability:

0.921
0.918
0.923
0.917

- Sampling sufficiency: measured by Kaiser – Meyer – Olkin (KMO) and Bartlett's
trial of Sphericity. The component investigation is viewed as suitable when the KMO
ought to be from 0.5 to 1, and the critical of Bartlett's test ought to be littler than 0.05.
- Total Variance Explained should be more than 50 %.

- The Eigen-estimation of each variable should over 1 to be acknowledged.
- Factors which are uncorrelated and distinct is discriminant validity, it is
determined by two methods. Using of pattern matrix is the first method. In this method,
each variable should load on one factor. If one factor have multiple variables it is crossloadings, so the cross-loadings should be more than 0.2 (Tabachnich & Fidell, 2007). In
pattern matrix appendix, there is no cross-loadings situation. Using factor correlation

20


matrix appendix is the second method for determining discriminant validity. In this
method, correlation among factors should lower than 0.7 (Tabachnich & Fidell, 2007).
The contrast between cross-loading of a specific thing should be more than 0.3.
Next, a technique to evaluate EFA relationship to be implicated. In this
exploration, EFA is connected to test the model with The Kaiser-Meyer-Olkin (KMO)
and Bartlett's results by utilizing the Principal Axis Factoring with Promax revolution.
The Barlett result with significant value of Sig. = .000 (p<0, 05), the KMO data (0.911)
list was greater than 0.6 as per Kaiser (1974) showing that the component investigation is
proper. The EFA extricated six variables, comparing with the six develop utilized as a
part of the hypothetical model.
Table 4: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Bartlett's Test of
Approx. Chi-Square
Sphericity
Df
Sig.

0.911
7605.548

351
.000

To guarantee the pragmatic criticalness of EFA, Factor Loading ought to be
equivalent or higher than 0.5, Total Variance Explained is more than half (Gerbing &
Andension, 1998). In the investigation, all element loadings were more noteworthy than
0.50 and add up to difference separated (70,234%) were greater than 50 percent. These
EFA results reflected all of the measures of constructs fulfilled the necessities for the
factors extracted, factor loadings and total variance extracted.

Table 5: Total Variance Explained
21


Initial Eigenvalues
Facto
r

Total

% of
Variance

Cumulative
%

1
9.339
34.590
34.590

2
3.540
13.110
47.700
3
2.408
8.919
56.619
4
2.314
8.570
65.190
5
1.574
5.830
71.019
6
1.444
5.350
76.369
7
0.559
2.071
78.439
8
0.536
1.984
80.423
9
0.526

1.950
82.373
10
0.491
1.820
84.193
11
0.447
1.654
85.847
12
0.399
1.478
87.325
13
0.376
1.393
88.719
14
0.339
1.254
89.973
15
0.321
1.189
91.162
16
0.288
1.068
92.230

17
0.264
0.979
93.209
18
0.245
0.909
94.118
19
0.230
0.852
94.970
20
0.210
0.777
95.747
21
0.204
0.754
96.501
22
0.191
0.706
97.207
23
0.182
0.675
97.882
24
0.179

0.661
98.543
25
0.146
0.540
99.084
26
0.132
0.487
99.571
27
0.116
0.429
100.000
Extraction Method: Principal Axis
Factoring.

Extraction Sums of Squared
Loadings
Total
9.055
3.252
2.149
2.026
1.310
1.171

22

% of

Variance
33.537
12.044
7.960
7.505
4.851
4.337

Cumulative
%
33.537
45.581
53.541
61.047
65.897
70.234

Rotation
Sums of
Squared
Loadingsa
Total
5.046
4.773
5.558
6.059
5.399
6.101

Once more, six constructs were analyzed: Participative leadership, external work
contacts, behavior-focused strategies, natural reward strategies, constructive thought
pattern strategies and IWB. The scales measuring these develops were refined through
Cronbach's alpha and EFA utilizing the informational index (n = 369) gathered in the
fundamental overview. Hence, all measures for variables influencing IT representatives'
creative work conduct were fulfilled to go the corroborative manufacturing plant
investigation later.
4.2 .Confirmatory Factory Analysis (CFA)
Before leading structural equation modeling (SEM), an estimation was surveyed
utilizing AMOS 20. There were subjected to a confirmatory factor analysis (CFA) with a
six-consider estimation display utilizing most extreme probability estimation. CFA is a
better technique to access to validity and reliability of measurement.
CFA is measured the including values: Chi-square, Chi-square/dfg, Comparative
Fit Index (CFI), Tucker and Lewis Index (TLI), Root Mean Square Error Approximation
(RMSEA). All components are reliability for the next analyzing stages if GFI, TLI and
CFI are equivalent or over 0.9 (Bentler and Bonett, 1980); Chi-square/df is equivalent or
lower than 2 (Chisquare/df ≤3 can be acknowledged sometimes) (Carmines and McIver,
1981); and RMSEA is equivalent or lower than 0.08 (RMSEA ≤ 0.05 is incredible)
(Steiger, 1990).

23


Figure 2: CFA result
The fit insights indicated that the measurement model fit the data suitably well. These
values are GFI = 0.925, TLI = 0.981, CFI = 0.984 (>0.9), Chi-square/df = 1.396 (<2),
RMSEA = 0.33 (<0.05) demonstrate the legitimacy and dependability of estimations.
Furthermore, as the results of Figure 3 shows the undimensionty among the constructs.
24

As stated by Steenkamp and Van (1991), if the goodness of-fit is positive, at this point
the constructs are unidimensional with the exception of the relationship between factor
blunders
Thus, the estimation display criteria for convergent validity. Model fit of CFA
adequate (Chi-square= 454.806; df=315;p=0.00; Chi-square/df = 1.396; RMSEA= 0.33;
CFI= 0.984; GFI= 0.925; TLI= 0.981) Composite Reliability (CR) for each develop was
computed. As appeared in Table 3, all builds had attractive levels of composite
dependability, running from 0.875 to 0.939. Fornell and Larcker's (1981) list of index of
Average Variance Extracted (AVE) was surveyed. All the AVEs were from 0.583 to
0.794, it demonstrated the proper when they were more prominent than 0.5 (Fornell, &
Larcker, 1981).
In this section, we have to test discriminant validity, there is two condition for
testing discriminant validity. The first one is that MSV should be lower than AVE, the
second one is that square root of AVE should higher than inter-construct correlation.
Table 6: CR, AVE and MSV result
CR
AVE
MSV
0.916
0.731
0.303
Constructive
0.147
0.893
0.583
Leadership
0.156
0.939
0.794

Contacts
0.933
0.777
0.345
Reward
0.937
0.789
0.345
Behavior
0.875
0.585
0.303
Innovative
The correlation matrix is as follow:
Table 7: Correlations
Estimate
0.383
0.222
0.285
0.246
0.379

Leadership <-> Contacts
Leadership <-> Reward
Leadership <-> Behavior
Leadership <-> Constructive
Leadership <-> Innovative
25