Corresponding Author

Dian Mulia Sari (dianmulia15@gmail.com)

Year

2025

Abstract

In an era defined by volatility, uncertainty, complexity, and ambiguity (VUCA), public sector organizations face increasing pressure to innovate. This study examines how ambidextrous leadership influences innovative work behavior (IWB) among civil servants, with psychological ownership (PO) serving as a mediator. Using a quantitative approach, data were collected from 152 structural and functional officials within Indonesia’s State Finance Organization (OKN) and analyzed using PLS-SEM. The results indicate that ambidextrous leadership has a significant direct effect on IWB. More importantly, psychological ownership mediates this relationship through two distinct pathways: promotive PO strengthens IWB by fostering confidence and proactive contribution, while preventive PO constrains IWB by triggering territoriality and risk aversion. Ambidextrous leadership not only promotes innovation directly but also indirectly by cultivating promotive ownership and reducing preventive ownership. These findings underscore the importance of leadership that flexibly combines empowerment and discipline to overcome bureaucratic silos and foster an innovation-conducive climate. The study offers practical insights for public institutions seeking to enhance innovation through leadership development and organizational culture interventions.

Keywords:

ambidextrous leadership, psychological ownership, innovative work behavior, public sector innovation, VUCA, silo culture, Indonesia.

Included in

Leadership Commons

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One for All, All for Innovation: Transforming the Indonesia’s Public Sector Through Ambidextrous Leadership

In an era defined by volatility, uncertainty, complexity, and ambiguity (VUCA), public sector organizations face increasing pressure to innovate. This study examines how ambidextrous leadership influences innovative work behavior (IWB) among civil servants, with psychological ownership (PO) serving as a mediator. Using a quantitative approach, data were collected from 152 structural and functional officials within Indonesia’s State Finance Organization (OKN) and analyzed using PLS-SEM. The results indicate that ambidextrous leadership has a significant direct effect on IWB. More importantly, psychological ownership mediates this relationship through two distinct pathways: promotive PO strengthens IWB by fostering confidence and proactive contribution, while preventive PO constrains IWB by triggering territoriality and risk aversion. Ambidextrous leadership not only promotes innovation directly but also indirectly by cultivating promotive ownership and reducing preventive ownership. These findings underscore the importance of leadership that flexibly combines empowerment and discipline to overcome bureaucratic silos and foster an innovation-conducive climate. The study offers practical insights for public institutions seeking to enhance innovation through leadership development and organizational culture interventions.