The Effect of Empowering Leadership on Innovation Performance: The Mediation Role of Absorptive Capacity and Knowledge Sharing

There have been many studies related to innovation performance and empowering leadership, as well as research involving knowledge sharing and absorptive capacity variables. However, this research was conducted in the public sector, which is an organization that has a bureaucratic system as a control function and a lack of employee participation in improving organizational performance, one of which is innovation performance. This study took data from 219 respondents of 73 BPJS Kesehatan (Healthcare and Social Security Agency) branch offices in Indonesia. The survey data was processed using partial-least square structural equation modelling (PLS-SEM), with results showing that all mediating variables partially mediated the effect of empowering leadership on innovation performance. Thus, empowering leadership can directly or indirectly influence innovation performance.