This study examined the factors that affect employees' innovative behavior (IB) in the Ethiopian aviation sector, particularly emphasizing the roles and effects of organizational culture (OC), psychological empowerment (PE), and transformational leadership (TL). This research examined how TL directly affects OC and PE, how OC affects PE, and how both OC and PE operate as mediators. We gathered data by surveying participants at Ethiopian Airlines. We conducted data analysis using partial least squares structural equation modeling and bootstrap mediation analysis. TL, OC, and PE significantly influence employees' IB. TL and OC exert statistically significant and direct influences on PE. TL had a favorable correlation with OC. The mediation analysis indicated that PE mediates the links between TL and employees' IB and between OC and employees' IB. OC mediates the link between TL and employees' IB. The research examines three elements that promote employees' IB within the Ethiopian aviation sector. This study provides novel insights into the determinants promoting employee IB in the aviation industry. The findings underscore the significance of adopting a TL style, fostering an innovation-oriented OC, and empowering employees to enhance innovation among Ethiopian Airlines leaders.
Negussie et al. (2025) studied this question.