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Unlocking Employee Creativity Through Empowering Leadership:
The Dynamic Interplay of Trust and Engagement
Brightly Suryajaya Ong, Irsan Tricahyadinata*, Ike Purnamasari
Department of Management, Faculty of Economics and Business, Universitas Mulawarman, Indonesia
*Corresponding Author
DOI: https://doi.org/10.51584/IJRIAS.2025.1010000059
Received: 12 May 2025; Accepted: 06 October 2025; Published: 05 November 2025
ABSTRACT
This study aims to identify the effect of empowerment leadership on employee creativity at PT XYZ by
considering the mediating role of trust in leaders and employee engagement. In a service-based work
environment, employee creativity is a strategic element in creating innovation and maintaining company
competitiveness. Using a quantitative method with Structural Equation Modelling-Partial Least Squares (SEM-
PLS) approach, data were collected from 234 permanent employees of PT XYZ. The results showed that
empowerment leadership has a significant effect on employee engagement and employee creativity. However,
the direct effect of trust in leaders on creativity is not significant, although the trust serves as an amplifier in the
relationship between empowerment leadership and employee engagement. The theoretical implications of this
study extend the Job Demands-Resources (JD-R) theoretical framework by emphasising the importance of
empowerment as a key resource in enhancing creativity. Practically, PT XYZ is advised to implement an
empowerment-based leadership programme to increase employee engagement and encourage creative
behaviour.
Keywords: Leadership Empowerment, Trust in Leaders, Employee Engagement, Employee Creativity,
INTRODUCTION
Empowerment leadership has become one of the leadership approaches that has received increasing attention in
modern management literature, especially in an effort to increase employee creativity. Empowerment leadership
not only focuses on giving employees the authority to make decisions, but also encourages employees to develop
innovative ideas and creative solutions in carrying out their duties (Zhang & Bartol, 2010; Lee & Chen, 2023).
At PT XYZ, the role of empowerment leadership is considered crucial in facing increasingly dynamic and
complex business challenges.
In an organisational context, employee creativity has been proven to be one of the key factors to maintain
competitive advantage and achieve organisational goals. Employee creativity includes not only the ability to
generate new ideas, but also how those ideas can be applied to solve problems effectively (Amabile, 1988; Kim,
2024). However, previous research suggests that employee creativity can be influenced by various factors,
including leadership style, trust in leaders, and employee engagement (Gong, Huang, & Farh, 2009; Zhou & Li,
2023).
Although leadership empowerment has been shown to positively influence employee creativity, there is a
research gap regarding the mediating mechanism that explains the relationship (Lee, 2022; Wang & Liu, 2024).
This study focuses on the role of trust in leaders and employee engagement as mediating variables. Trust in
leaders is believed to strengthen the relationship between empowerment leadership and employee creativity by
increasing employees' confidence in leaders' decisions (Dirks & Ferrin, 2002; Liu, 2023).
On the other hand, employee engagement is also identified as an important variable that can bridge the influence
of empowerment leadership on employee creativity. Employee engagement refers to an employee's level of
emotional commitment and attachment to his or her job (Kahn, 1990; Bakker & Albrecht, 2024). When
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employees feel empowered by leaders, they are more likely to be emotionally involved in work tasks and
endeavour to come up with creative solutions.
Previous studies have shown that trust in the leader can strengthen the influence of empowerment leadership on
employee engagement. When employees trust their leaders, they are more motivated to accept additional
responsibilities and actively participate in decision-making (Mayer, Davis, & Schoorman, 1995; Xu & Zhang,
2023). Thus, trust in the leader can be a crucial factor in optimising the impact of empowerment leadership on
employee engagement.
However, some studies show contradictory results regarding the relationship between empowerment leadership
and employee creativity. For example, Zhang and Wang (2024) found that in a highly hierarchical environment,
employees tend to be reluctant to implement creative ideas despite empowering support from leaders. This
suggests the importance of considering mediating variables such as trust in leaders and employee engagement
to explain the phenomenon.
In addition, previous studies have also not comprehensively explored the role of employee engagement as a
mediating variable in the context of the relationship between empowerment leadership and employee creativity
in the service industry sector. In fact, the service industry is highly dependent on the ability of employees to
generate innovative ideas in the face of market competition (Gong et al., 2009; Chen & Lee, 2024).
Based on the identification of these research gaps, this study is focused on answering the main research question:
How does empowerment leadership influence employee creativity at PT XYZ, by considering the mediating role
of trust in leaders and employee engagement? By answering this question, this research is expected to make a
significant academic contribution in the field of human resource management.
The purpose of this study is to examine the direct effect of empowerment leadership on employee creativity as
well as to explore the mediating role of trust in leaders and employee engagement. Thus, this study will not only
enrich the literature on empowerment leadership, but also provide practical insights for companies in developing
strategies to increase employee creativity.
The original contribution of this study lies in testing a dual mediation model involving trust in leaders and
employee engagement. Most previous studies have only examined the role of one of the mediating variables
without considering the interaction between the two (Zhou & Li, 2023; Wang & Liu, 2024). Therefore, this study
seeks to provide a more comprehensive perspective in understanding the dynamics of empowerment leadership,
trust in leaders, employee engagement, and employee creativity.
This research also provides empirical contributions in the context of the service industry in Indonesia, especially
at PT XYZ. As one of the leading companies in the service sector, PT XYZ faces challenges in encouraging
employee creativity to create more innovative products and services. By examining the influence of
empowerment leadership in that context, this study can provide strategic recommendations for companies in
managing human resources effectively.
Thus, this study not only contributes to the development of theories on empowerment leadership, but also
provides relevant empirical evidence for management practitioners in the service industry. The findings of this
study are expected to be the basis for the implementation of employee empowerment programmes that focus on
increasing trust in leaders and employee engagement as a strategic step to increase employee creativity at PT
XYZ.
LITERATURE REVIEW
Empowerment Leadership
Empowerment leadership has been identified as a leadership approach capable of fostering employee creativity
through increased autonomy, collaborative support, and active participation in decision-making (Ahmad et al.,
2023; Kim & Beehr, 2023). Leaders who empower employees not only authorise them to make decisions but
also create a conducive environment for employees to experiment and generate creative ideas (Mehboob &
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Haque, 2024; Sun et al., 2024). In addition, empowerment also strengthens employees' sense of responsibility
towards their tasks, which in turn increases emotional engagement and intrinsic motivation to innovate (Chen,
2024).
Leadership empowerment not only has a direct effect on employee creativity but also through mediating
mechanisms such as work engagement and psychological ownership (Wu & Gu, 2023; Azila-Gbettor et al.,
2024). When employees feel empowered, they are more likely to be actively engaged in work, which in turn
drives creative behaviour (Rademaker et al., 2023). In addition, empowerment also builds a work climate that
supports the exploration of new ideas, especially when leaders provide a safe space for employees to share ideas
without fear of negative consequences (Kim & Beehr, 2023).
Trust in Leaders
Trust in the leader plays an important role in strengthening the relationship between empowerment leadership
and employee creativity. When employees feel trust in their leaders, they are more open to taking risks and
coming up with new ideas (Wu & Gu, 2023; Gehraus et al., 2024). The study by Ahmad et al. (2023) showed
that trust in leaders mediates the relationship between leadership empowerment and employee creativity by
creating a safe psychological environment for experimentation.
Trust in the leader also increases employees' perceived self-efficacy, which motivates them to innovate and
contribute creatively (Kim & Beehr, 2023; Sun et al., 2024). In addition, open communication supported by
empowering leadership strengthens employees' sense of trust, enabling them to participate more in strategic
decision-making and put forward innovative ideas (Tariq et al., 2023; Chen, 2024).
Employee Engagement
Employee engagement is an important variable in enhancing creativity in the workplace. Employees who feel
emotionally, cognitively, and physically involved in their work tend to be more motivated to innovate (Wu &
Gu, 2023; Sun et al., 2024). Research by Ahmad et al. (2023) confirmed that high employee engagement creates
a work environment that favours the exploration of new ideas, which in turn contributes to increased creativity.
The relationship between employee engagement and creativity is strengthened by mediating factors such as
psychological belongingness and psychological safety (Azila-Gbettor et al., 2024; Rademaker et al., 2023). The
study by Tariq et al. (2023) also showed that high employee engagement allows them to be more active in the
creative process, especially when the work environment supports collaboration and effective communication.
Thus, employee engagement not only serves as a predictor of creativity but also as an important mediator in the
relationship between empowerment leadership and employee creativity.
Research Hypothesis Development
Empowerment, Leadership, and Trust in Leaders
Empowerment leadership is expected to have a positive influence on trust in leaders. Leaders who empower
employees through providing autonomy, support, and participation in decision-making tend to create a higher
sense of trust (Ahmad et al., 2023; Kim & Beehr, 2023). In addition, open communication facilitated by
empowering leadership strengthens employees' sense of security and trust in the leader (Gehraus et al., 2024).
Therefore, the first hypothesis is formulated as follows:
H1: Empowerment leadership has a positive and significant effect on trust in leaders.
Empowerment, Leadership, and Employee Engagement
Empowerment leadership is also predicted to increase employee engagement. When employees are authorised
to make decisions and actively participate in strategic projects, they feel more emotionally and cognitively
engaged (Wu & Gu, 2023; Sun et al., 2024). In addition, leadership empowerment strengthens employees'
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intrinsic motivation to innovate, which contributes to increased work engagement (Chen, 2024). Thus, the
second hypothesis is formulated as:
H2: Empowerment leadership has a positive and significant effect on employee engagement.
Leadership Empowerment and Employee Creativity
Previous studies show that empowerment leadership has a significant influence on employee creativity. Leaders
who provide autonomy, support, and opportunities to experiment encourage employees to think creatively and
generate new ideas (Ahmad et al., 2023; Chen, 2024). This creativity-supportive work environment is also
reinforced by open communication and social support from leaders (Kim & Beehr, 2023). Thus, the third
hypothesis is formulated as:
H3: Empowerment leadership has a positive and significant effect on employee creativity.
Trust in Leaders and Employee Creativity
Trust in leaders is expected to increase employee creativity through creating a safe and supportive work
environment for the exploration of new ideas (Wu & Gu, 2023; Gehraus et al., 2024). When employees feel trust
in their leaders, they are more motivated to take risks and put forward new ideas without fear of negative
consequences (Tariq et al., 2023; Kim & Beehr, 2023). Therefore, the fourth hypothesis is formulated as:
H4: Trust in leaders has a positive and significant effect on employee creativity.
Employee Engagement and Employee Creativity
Employee engagement is expected to have a positive effect on employee creativity. Employees who are
emotionally and cognitively engaged in work will be more motivated to generate new ideas (Wu & Gu, 2023;
Sun et al., 2024). A work environment that supports employee engagement allows them to experiment more
freely and take risks at work (Chen, 2024). Thus, the fifth hypothesis is formulated as:
H5: Employee engagement has a positive and significant effect on employee creativity.
METHODOLOGY
Research Design
This research uses a quantitative design with a mixed-method approach. The quantitative approach was used to
examine the relationship between the variables of empowerment leadership, trust in leaders, employee
engagement, and employee creativity through SEM-PLS analysis using SmartPLS 4. The mixed-method
approach was applied to gain a deeper understanding of the factors that influence employee creativity through
semi-structured interviews with a purposively selected number of PT XYZ employees (Hair et al., 2021;
Henseler et al., 2021).
The SEM-PLS method was chosen due to its ability to analyse measurement models and structural models
simultaneously and to overcome multicollinearity problems and relatively small to medium sample sizes (Hair
et al., 2021; Henseler et al., 2021). This method also allows testing complex mediation models with multiple
mediator variables such as trust in leaders and employee engagement (Wu & Gu, 2023; Chen, 2024).
Population and Sample
The population of this study consisted of all employees of PT XYZ, totalling 285 people. Based on the formula
Hair et al. (2022), the recommended minimum sample size is 10-20 times the number of research indicators. In
this study, there are 25 indicators, so the required sample size is 250-500 respondents. The number of samples
taken was 234 respondents selected using purposive sampling technique with the following criteria: Permanent
employees with at least 1 year of service, Have been involved in creative projects in the company, Directly
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interact with leaders related to empowerment programmes. A sample size of 234 people was selected to ensure
the generalisability of the research findings and to meet the SEM-PLS analysis criteria (Hair et al., 2022; Kim
& Beehr, 2023).
Data Collection Techniques
Data collection techniques were conducted through the distribution of structured questionnaires and semi-
structured interviews. The questionnaire consisted of statements related to empowerment leadership, trust in
leaders, employee engagement, and employee creativity, which were measured using a 5-point Likert scale (1 =
Strongly Disagree, 5 = Strongly Agree) (Creswell & Creswell, 2022; Sekaran & Bougie, 2022).
Data collection was conducted in two stages: Stage 1: Direct and online distribution of questionnaires using
Google Forms to reach a wider range of respondents. Stage 2: Semi-structured interviews were conducted with
15 purposively selected employees to gain a more in-depth perspective on the dynamics of empowerment
leadership and employee creativity at PT XYZ.
Research Instruments
The research instrument consisted of a questionnaire that was compiled based on indicators of each research
variable. The instruments were adapted from previous studies that have been tested for validity and reliability,
including: Empowerment Leadership (EL): Measured through the dimensions of autonomy granting, decision-
making support, employee capacity building, and individual contribution recognition (Zhou et al., 2022; Chen,
2024). Trust in Leaders (TR): Measured through the dimensions of integrity, competence, and goodwill of the
leader (Ahmad et al., 2023; Kim & Beehr, 2023). Employee Engagement (EG): Measured through the
dimensions of passion, dedication, and concentration on work (Wu & Gu, 2023; Sun et al., 2024). Employee
Creativity (CR): Measured through the dimensions of originality of ideas, effectiveness of solutions, and
proactivity in completing tasks (Mehboob & Haque, 2024; Tariq et al., 2023).
Validity and Reliability Testing
The validity test was carried out using the Fornell-Larcker Criterion method to ensure discriminant and
convergent validity between research constructs (Hair et al., 2021). Average Variance Extracted (AVE) was
used to assess convergent validity, with a minimum value of AVE ≥ 0.50. Empowerment Leadership (EL): AVE
= 0.733, Trust in Leaders (TR): AVE = 0.662, Employee Engagement (EG): AVE = 0.641, Employee Creativity
(CR): AVE = 0.661.
Reliability tests were conducted using Cronbach's Alpha and Composite Reliability (CR). A construct is declared
reliable if the Cronbach's Alpha value ≥ 0.70 and CR ≥ 0.70 (Henseler et al., 2021). Cronbach's Alpha EL =
0.926, CR = 0.943, Cronbach's Alpha TR = 0.897, CR = 0.921, Cronbach's Alpha EG = 0.887, CR = 0.914,
Cronbach's Alpha CR = 0.915, CR = 0.932.
Data Analysis Techniques
Data analysis was conducted through Structural Equation Modelling (SEM) based on Partial Least Squares
(PLS) using Smartpls version 4 software. The stages of analysis include measurement model evaluation, which
includes convergent validity (Outer Loading, AVE) and reliability (Cronbach's Alpha, Composite Reliability)
tests. Structural Model Evaluation: Testing research hypotheses through analysis of path coefficients, t-statistic,
and p-value (t-statistic ≥ 1.96 and p-value ≤ 0.05). Mediation Test: Using a bootstrapping method to evaluate
the mediating effects of trust in leaders and employee engagement in the relationship between empowerment
leadership and employee creativity.
R-square test: Assess the predictive ability of the model through the R-square (R²) value. R-square value for
each construct: Employee Creativity: R² = 0.795, Employee Engagement: R² = 0.600. Trust in Leaders: R² =
0,419
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RESULTS
Respondent Demographics
The majority of respondents in this study were dominated by men as many as 215 people (88%), while only 28
women (12%). Most respondents are in the age range of 35-44 years (46%) and 45-54 years (38%), indicating
that the majority of employees are in the productive and experienced age phase. In terms of education, 69% of
respondents have a Bachelor's degree (S1), while 13% have postgraduate education (S2 / S3).
Based on length of service, 53% of respondents have worked for more than 6 years, while 30% have worked for
4-6 years. This composition reflects the dominance of an experienced workforce at PT XYZ, which is likely to
have an influence on their perceptions of empowerment leadership and employee creativity.
Table1. Respondent Demographics (N=243)
No.
Category
Sub-Category
Number (people)
1
Gender
Male
215
Female
28
2
Age
< 25 years
2
25 - 34 years
11
35 - 44 years
111
45 - 54 years
92
≥ 55 years
27
3
Last Education
SMA/SMK
17
Diploma (D3)
28
Bachelor (S1)
167
Postgraduate (S2 / S3)
31
4
Length of Service
< 1 year
12
1 - 3 years
28
4 - 6 years
73
> 6 years
130
Source: Data processing results, 2025
Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) was used to analyse the relationship
between latent variables in this study, given that this method is able to handle complex models with simultaneous
mediator and moderator variables (Hair et al., 2022). SEM-PLS was chosen because of its ability to deal with
data that is not strictly normally distributed and relatively small to medium sample sizes (Henseler et al., 2021).
The analysis technique is carried out in two stages, namely the evaluation of the measurement model to test the
validity and reliability of constructs through AVE, CR, and HTMT, and the evaluation of the structural model
to test the relationship between constructs through path analysis and bootstrapping to obtain the t-statistic and
p-value for hypothesis testing (Chin, 2021; Fornell & Larcker, 1981; Gehraus et al., 2024).
Evaluation of the measurement model
SEM-PLS aims to assess the validity and reliability of research instruments based on indicators used to measure
latent variables. Convergent validity is evaluated through the outer loading value (> 0.70), Average Variance
Extracted (AVE > 0.50), and Composite Reliability (CR > 0.70), which indicates the ability of the construct to
explain the variance of its indicators (Hair et al., 2022; Fornell & Larcker, 1981). In this study, all constructs
have met the convergent validity criteria with the highest AVE value on Empowerment Leadership (0.733) and
the lowest on Employee Engagement (0.641), but still above the 0.50 threshold required for good convergent
validity.
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Table 2. Outer Loading Measurement
Variable/Indicator
Outer Loading
CA
CR
AVE
Employee Creativity (CR)
0,915
0,916
0,661
CR1
Divergent Thinking: The ability to generate a variety of unique
solutions to a problem.
0,777
CR2
Originality of Ideas; The degree of novelty and uniqueness of
the ideas generated.
0,828
CR3
Effectiveness of the Solution; Relevance and usefulness of the
idea in the context of the work.
0,838
CR4
Fluency and Flexibility; The ability to generate many ideas from
multiple perspectives.
0,758
CR5
Elaboration; Development of basic ideas into more complex and
detailed solutions.
0,830
CR6
Proactivity; The willingness to take initiative to solve problems
or create something new.
0,821
CR7
Risk-taking Courage; The ability to try new ideas despite the
potential for failure.
0,835
Employee Engagement (EG)
0,887
0,891
0,641
EG1
Enthusiasm for Work; Level of energy and enthusiasm in
carrying out tasks.
0,712
EG2
Dedication and Commitment; Feelings of pride and emotional
attachment to the job and organisation.
0,808
EG3
Active Participation; Involvement in decision-making and team
collaboration.
0,833
EG4
Emotional Connectedness; Strong emotional connection with
job roles and responsibilities.
0,793
EG5
Positive Perception of Work Environment; A positive view of
a supportive work environment.
0,832
EG6
Work-life balance; The ability to manage work and personal
life responsibilities.
0,818
Trust in Leaders (TR)
0,897
0,900
0,662
TR1
Leader Integrity; Honesty and conformity of the leader's actions
with prevailing moral values.
0,864
TR2
Leader Competence; Technical and managerial skills in
managing the organisation.
0,764
TR3
Behavioural Consistency; The leader's reliability in making
decisions and carrying out their responsibilities.
0,790
TR4
Openness and Transparency; The leader's ability to convey
information clearly and openly.
0,783
TR5
Empathy and Attention; The level of attention leaders pay to
employee welfare.
0,796
TR6
Fairness in Decision Making; Fair treatment without
discrimination of all employees.
0,877
Empowerment Leadership (EL)
0,926
0,927
0,733
EL1
Granting Autonomy: The degree of freedom given to employees
to make decisions regarding their work.
0,883
EL2
Support in Decision Making: Active participation of employees
in strategic decision-making.
0,866
EL3
Employee Capacity Development: The leader's efforts to
improve employees' competencies and skills.
0,877
EL4
Trust in Subordinates: The leader's level of confidence in the
ability and integrity of employees.
0,901
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EL5
Open Communication: The quality of two-way communication
between leaders and subordinates.
0,772
EL6
Recognition of Individual Contributions: Reward and
recognition of employees' achievements and innovative ideas.
0,831
Source: Data processing results, 2025
The outer loading evaluation aims to assess the contribution of each indicator in representing latent variables. In
the Employee Creativity (CR) variable, all indicators have an outer loading value above 0.70, with the highest
value in indicator CR3 (Solution Effectiveness, 0.838) and the lowest value in CR4 (Fluency and Flexibility,
0.758), which remains above the 0.70 threshold to indicate good convergent validity. For Employee Engagement
(EG), the outer loading values range from 0.712 (Enthusiasm for Work) to 0.833 (Active Participation),
indicating the consistency of the indicators' contribution in measuring the construct. Meanwhile, in the Trust in
Leaders (TR) variable, indicators TR1 (Leader Integrity) and TR6 (Fairness in Decision Making) show the
highest outer loading values of 0.864 and 0.877, respectively, which indicates the importance of integrity and
fairness aspects in shaping perceptions of trust in leaders. Finally, in the Empowerment Leadership (EL) variable,
indicator EL4 (Trust in Subordinates) has the most dominant contribution with an outer loading of 0.901,
indicating the importance of the trust element in empowerment leadership.
Table3. Fornell-Larcker Criterion
CR
EG
EL
TR
CR
0,813
EG
0,839
0,800
EL
0,840
0,775
0,856
TR
0,656
0,713
0,648
0,813
Source: Data processing results, 2025
The Fornell-Larcker Criterion table tests discriminant validity by comparing the square root of the AVE on the
main diagonal with the correlation between constructs outside the diagonal. The analysis results show that the
main diagonal values (CR = 0.813; EG = 0.800; EL = 0.856; TR = 0.813) are higher than the correlation values
between constructs, indicating that each construct has sufficient discriminant validity. The highest correlation
value is between Employee Creativity (CR) and Employee Engagement (EG) of 0.839, indicating a strong
relationship but not exceeding the AVE value of each construct, so discriminant validity is maintained.
Structural model testing (Inner model)
The results of the R-square analysis show that the variable Employee Creativity (CR) is explained by the
independent variables by 79.5% (R² = 0.795), while Employee Engagement (EG) is explained by 60% (R² =
0.600), and Trust in Leaders (TR) by 41.9% (R² = 0.419). The adjusted R-square value indicates model stability
without estimation bias. Meanwhile, the f-square results show the effect of the independent variables' influence
on the dependent, with the largest influence coming from Empowerment Leadership (EL) on Employee
Engagement (EG) at 1.503, followed by the influence of EL on Trust in Leaders (TR) at 0.722 and EL on
Employee Creativity (CR) at 0.410, which shows a strong and significant influence. In contrast, the effect of
Trust in Leaders (TR) on Employee Creativity (CR) is very weak with an f-square value of 0.002, indicating an
insignificant effect.
The results of the Variance Inflation Factor (VIF) test show that all VIF values are below the threshold of 5.0,
which indicates that there is no multicollinearity problem between the independent variables in the model. The
effect of Employee Engagement (EG) on Employee Creativity (CR) has the highest VIF value of 3.101, while
the effect of Empowerment Leadership (EL) on Employee Engagement (EG) and EL on Trust in Leaders (TR)
has the lowest VIF value of 1.000, which indicates that both paths are free from multicollinearity risk. Overall,
these results indicate that the estimated structural model is suitable for further analysis.
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Path Coefficient
The results of hypothesis analysis show that three paths of influence are significant with p-value <0.05, namely
the influence of Empowerment Leadership (EL) on Trust in Leaders (TR) (β = 0.648, t = 11.393), EL on
Employee Engagement (EG) (β = 0.775, t = 26.940), and EL on Employee Creativity (CR) (β = 0.470, t = 9.288).
Meanwhile, the effect of Trust in Leaders (TR) on Employee Creativity (CR) was not significant with a p-value
of 0.565, while the effect of Employee Engagement (EG) on Employee Creativity (CR) was significant with β
= 0.456 and t = 8.283. This finding indicates that employee engagement plays an important role in enhancing
employee creativity, while the role of trust in leaders is not significant in the context of this study.
Table 4. Hypothesis Testing Results
No.
Hypothesis
Path Coefficient
T-Statistic
P-Value
Decision
H1
Empowerment leadership → Trust in
the leader
0,648
11,393
0,000
Accepted (significant)
H2
Empowerment leadership → Employee
engagement
0,775
26,940
0,000
Accepted (significant)
H3
Empowerment leadership → Employee
creativity
0,470
9,288
0,000
Accepted (significant)
H4
Trust in leader → Employee creativity
0,027
0,576
0,565
Rejected (not significant)
H5
Employee engagement → Employee
creativity
0,456
8,283
0,000
Accepted (significant)
Source: Data processing results, 2025
Image1. Smartpls 4 Output
DISCUSSION
Hypothesis 1: Empowerment Leadership on Trust in Leaders
Interpretation of the results of testing the first hypothesis shows that empowerment leadership has a positive and
significant effect on trust in leaders with a path coefficient of 0.648, a t-statistic of 11.393, and a p-value of
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0.000. These results indicate that the higher the level of empowerment carried out by the leader, the higher the
level of employee trust in the leader. This finding supports the theoretical concept proposed by Gillespie et al.
(2021), which emphasises that leadership empowerment can build trust through three main aspects: integrity,
competence, and goodwill of a leader.
Compared to previous research, this result is consistent with the study of Ahmad et al. (2023), which found that
leadership empowerment can increase trust in leaders through a value-based and participatory approach.
Research by Kim & Beehr (2023) also supports this finding, where empowering leadership is associated with an
improved work climate that supports psychological safety, which is a key basis for the formation of trust. In
addition, Assefa et al. (2024) emphasised that high-quality relationships between leaders and team members
through an empowerment style can strengthen trust by providing responsibility and opportunities to contribute.
The theoretical implications of these findings suggest that empowering leadership not only serves as a
mechanism to increase employee autonomy but also as an important element in forming trust-based interpersonal
relationships. Practically, the results of this study recommend that PT XYZ improve its leadership empowerment
strategy through training that focuses on developing integrity, competence, and open communication. Such
programmes can be the foundation for increasing employees' trust in leaders, which in turn can strengthen more
harmonious and effective working relationships.
Hypothesis 2: Empowerment Leadership on Employee Engagement
The results of testing the second hypothesis show that empowerment leadership has a positive and significant
effect on employee engagement, with a path coefficient value of 0.775, a t-statistic of 26.940, and a p-value of
0.000. These results indicate that a leadership style that encourages empowerment plays an important role in
improving employee engagement, especially through increasing a sense of belonging, responsibility, and work
autonomy. In the context of PT XYZ, the greater the empowerment provided by the leader, the higher the
employee engagement, which is reflected in passion, dedication, and focus in carrying out tasks.
This finding is consistent with the research of Nasrullah et al. (2022) who found that leadership empowerment
is able to increase engagement through strengthening individual roles in the work process. Similarly, Rosnawati
and Purwanto (2023) stated that employees who feel trusted and involved by their leaders show higher levels of
dedication and long-term loyalty to the organisation. Another study by Albrecht et al. (2023) emphasised that
leadership empowerment functions as a job resource within the Job Demands-Resources (JD-R) framework,
which increases intrinsic motivation and employee engagement.
The theoretical implications of these findings suggest that leadership empowerment serves not only as a tool to
improve individual performance but also as an effective strategy to build employees' emotional and cognitive
commitment to their work. Practically, organisations need to develop leadership training programs that
emphasise empowerment, active participation, and open communication so that employees feel valued and have
a significant role in achieving company goals. This finding is relevant for PT XYZ, which is working to improve
employee engagement through strengthening the role of leaders as facilitators and empowerers in a dynamic
work environment.
Hypothesis 3: Empowerment Leadership on Employee Creativity
The results of testing the third hypothesis show that empowerment leadership has a positive and significant effect
on employee creativity with a path coefficient of 0.470, a t-statistic of 9.288, and a p-value of 0.000. These
results indicate that a leadership style that encourages empowerment plays an important role in improving
employees' ability to think creatively and generate innovative ideas. In the context of PT XYZ, empowerment
carried out by leaders provides space for employees to experiment, take risks, and contribute to decision making,
thus creating a work environment conducive to the development of creativity.
This finding is consistent with research by Li, Xu, and Zhang (2023), which states that empowering leadership
can increase creativity through increased work autonomy and employee engagement. Another study by Fatima
and Bilal (2022) also emphasised that empowering leadership not only increases intrinsic motivation but also
encourages creative behaviour in completing complex tasks in a knowledge-based work environment.
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Meanwhile, a study by Mehboob and Haque (2024) found that leadership empowerment can strengthen
employees' sense of self-efficacy, which becomes a key driving factor in the development of new ideas.
The theoretical implications of these findings confirm the importance of leadership empowerment as one of the
key components in the Job Demands-Resources (JD-R) framework, where empowerment serves as a job resource
that encourages intrinsic motivation and employee self-reliance. Practically, PT XYZ can implement a leadership
training programme that focuses on developing empowerment skills, including open communication, delegation
of authority, and rewarding the contribution of innovative ideas. These measures not only enhance employee
creativity but also strengthen working relationships based on collaboration and mutual trust.
Hypothesis 4: Trust in Leaders on Employee Creativity
The results of testing the fourth hypothesis show that trust in leaders has no significant effect on employee
creativity, as indicated by the path coefficient value of 0.027, t-statistic of 0.576, and p-value of 0.565. With a
p-value greater than 0.05, this hypothesis is statistically rejected. This finding indicates that while trust in leaders
may strengthen interpersonal relationships in the workplace, it is not enough to directly increase employees'
creative behaviour at PT XYZ.
In the theoretical review, Edmondson (1999) stated that trust can create a sense of psychological security that is
conducive to creativity. However, the results of this study do not support this assertion, suggesting that trust in
leaders is not always the main driver for employees' innovative behaviour, especially if it is not accompanied by
resource support or work autonomy. The study by Al-Ghazali and Afsar (2022) also mentioned that trust will
only have a significant impact on creativity if it is accompanied by empowerment or support for new ideas.
The theoretical implications of these findings suggest that trust in leaders cannot be used as a key variable in
enhancing employee creativity without an organisational structure that supports the exploration of new ideas.
Practically, PT XYZ needs to consider more comprehensive strategies, such as strengthening two-way
communication and providing space for experimentation of innovative ideas, so that the trust built can be utilised
to effectively encourage employee creativity.
Hypothesis 5: Employee Engagement on Employee Creativity
The results of testing the fifth hypothesis show that employee engagement has a positive and significant effect
on employee creativity, with a path coefficient of 0.456, t-statistic of 8.283, and p-value of 0.000. This finding
indicates that the higher the level of employee engagement at work, the greater their tendency to display creative
behaviour. In the context of PT XYZ, employee engagement is reflected in enthusiasm, dedication, and active
participation in work tasks, which become the foundation for the emergence of creative ideas that are applicable
and solutive.
Research by Wang et al. (2023) reinforced these findings by showing that employee engagement serves as a
bridge between supportive working conditions and innovative behaviour. When employees feel intrinsically
motivated and supported by a work environment that encourages active participation, the propensity to come up
with creative solutions increases significantly. In addition, research by Kang & Shin (2022) also found that
engaged employees are more proactive in seeking opportunities for improvement and innovation in work
processes.
The theoretical implications of these findings suggest that employee engagement serves not only as a form of
emotional attachment to work but also as psychological capital that motivates employees to devote cognitive
and affective energy in generating creative solutions. Practically, PT XYZ can develop strategies to increase
employee engagement through challenging yet meaningful job design, recognition programmes for the
contribution of innovative ideas, and a work culture that supports collaboration and open communication.
CONCLUSION
This study successfully revealed that empowerment leadership has a significant influence on employee
engagement and employee creativity, both directly and through the mediating mechanism of trust in leaders and
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employee engagement. The analysis results show that employee engagement plays an important role as a
mediator that transforms empowerment leadership style into creative behaviour in the workplace. In contrast,
trust in the leader does not prove significant in enhancing employee creativity directly, although it serves as an
important element in strengthening the interpersonal relationship between leaders and subordinates.
Theoretically, this study extends the Job Demands-Resources (JD-R) framework by emphasising the importance
of empowering leadership as a job resource that not only increases employee engagement but also their
creativity. In addition, this study enriches the literature related to the mediation of employee engagement and
trust in leaders in the context of energy-based organisations, which has rarely been studied so far. Practically,
the results of this study offer insights for companies in developing leadership programmes that focus on
empowerment, contribution recognition, and participatory communication to create a work environment
conducive to creativity.
However, this study has several limitations. First, the focus of the study on one industry sector (energy) limits
the generalisation of the findings to other sectors that may have different organisational characteristics and work
dynamics. Secondly, this study uses a cross-sectional approach, so it cannot identify changes in variable
dynamics in the long term. Therefore, future research is recommended to implement a longitudinal approach to
observe the long-term effects of leadership empowerment on employee engagement and creativity.
Future research could also consider moderator variables such as innovation climate or organisational culture to
strengthen the relationship between the variables studied. In addition, the use of mixed methods can provide a
deeper understanding of the psychological mechanisms linking leadership empowerment to employee creativity,
particularly in the context of high-risk industries such as the energy sector.
ACKNOWLEDGEMENTS
The authors would like to express their deepest appreciation and gratitude to all those who have contributed to
the completion of this research. Thanks to PT XYZ for the permission and support provided in collecting research
data. Appreciation is also addressed to all respondents who have taken the time to provided valuable information
for the success of this research.
The authors would also like to thank the supervisors and peers who have provided input, advice, and support
during the research process until the preparation of this article. Last but not least, the author is grateful to family
and friends who always provide motivation and moral support during this research.
Hopefully the results of this study can provide benefits for the development of science, management practice,
and become a reference for further research. Thank you.
Author Contribution
As the lead author, Brightly Suryajaya Ong fully contributed to data collection, data analysis using SEM-PLS,
and manuscript writing. In addition, he also played a role in the preparation of the theoretical framework,
hypothesis development, and interpretation of the research results.
Irsan Tricahyadinata is the corresponding author who manages communication with the journal and ensures
compliance with publication guidelines. He also provides academic supervision, guidance on research
methodology, and substantive input in data analysis and drafting theoretical and practical implications.
Ike Purnamasari contributed to the literature review on empowerment leadership, trust in leaders, and employee
engagement. In addition, she also provided critical input regarding the structure of the article, strengthening
theoretical arguments, and improving the manuscript based on the results of the internal review.
Conflict of Interest Statement
The authors declare no conflict of interest associated with this research. This research was conducted
independently without any financial, commercial, or institutional influence or interest that could affect the study
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results. The research process, data analysis, and article writing were conducted objectively and based on ethical
academic principles.
If you have any further questions or need clarification regarding potential conflicts of interest, the authors can
be contacted at the correspondence address provided.
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