Linking transformational leadership to team service innovation in the hospitality industry: A team-level mediation and moderation investigation

Team service innovation contributes to team service excellence and customer satisfaction in the hospitality industry. Nevertheless, mechanisms behind team service innovation have been rarely explored. This study aims to develop a team-level model of mediating and moderating mechanisms behind the relationship between team-focused transformational leadership (TFL) and team service innovation. Data were collected from 683 team members and their 114 team leaders of 67 hospitality organisations located in China. Multilevel structural equation modelling (MSEM) and latent moderated structural equation modelling (LMS) were utilised to validate the research model. Results revealed that team-focused TFL fostered team service innovation via the mediating role of developmental culture. Group extraversion diversity strengthened the relationship between team-focused TFL and team service innovation, such that the relationship was strengthened only under higher but not lower levels of group extraversion diversity. In light of research findings, theoretical and practical implications are drawn.