Authentic leadership and readiness for change: Innovative work behavior in East Java startup context

Rapidly growing startups in the digital era face dynamic challenges that demand swift adaptation and continuous innovation. Innovative work behavior is widely recognized as a key driver of startup success, particularly in rapidly developing regions such as East Java. This study aims to examine the relationship between authentic leadership and readiness for change in influencing innovative work behavior within East Java’s startup ecosystem. Authentic leadership—characterized by integrity, transparency, self-awareness, and confidence—can foster innovation within teams, while readiness for change facilitates the effective implementation of new strategies amid market and technological uncertainties. This study employed a survey method involving 100 employees from various startups in East Java, Indonesia. Data were analyzed using a quantitative approach using the Partial Least Square-Structural Equation Modeling (PLS-SEM) with the help of SmartPLS 4 software to assess the relationships among the variables. The findings indicate that both authentic leadership and readiness for change significantly influence innovative work behavior in the startup environment. This research contributes to the human resource management literature and supports the development of Indonesia’s startup economy. Notably, this is the first study in the Indonesian startup context to examine the global relevance of authentic leadership, readiness for change, and innovative work behavior.