Effect of spiritual leadership on psychological safety climate and team innovation in consulting teams: the moderating role of occupational self-efficacy

Purpose This study examines the effect of the spiritual leadership of the leaders in a consulting team on psychological safety climate and team innovation. Moreover, our research adopts the contingency theory of leadership to investigate whether the effect of spiritual leadership on psychological safety climate and team innovation could be moderated by personal characteristics of team members in terms of occupational self-efficacy. Design/methodology/approach Survey data were obtained from 229 team members across 24 consulting firms in Bangkok. To minimize common method bias, team innovation was assessed by team leaders while other variables were assessed by team members. We used Partial Least Squares Structural Equation Modeling to analyze the data. Findings The analysis supports the positive effect of spiritual leadership on psychological safety climate and team innovation. Psychological safety climate also mediates the effect of spiritual leadership on team innovation. Lastly, the moderating effect analysis shows that the spiritual leadership of the team leaders exerts a weaker influence on the psychological safety climate and team innovation when team members exhibit high levels of occupational self-efficacy. Practical implications Because spiritual leadership plays a significant role in boosting team innovation through the creation of a psychologically safe climate, the consulting firms can provide a leadership development program to help their team leaders to gain insight into the nature of spiritual leadership and learn how to demonstrate appropriate behaviors when they supervise a team. In particular, this policy recommendation is highly relevant when team leaders supervise members who exhibit low occupational self-efficacy. Originality/value Our findings not only illustrate that spiritual leadership could enhance team innovation through the mediating role of psychological safety climate, but the level of occupational self-efficacy of the team members could significantly reduce the effects of spiritual leadership on psychological safety climate and team innovation.