The Effect of Transformational Leadership on Innovative Work Behavior in SMEs: Test of a Mediating Model

In today’s advancing small-business competition, SME leaders are forced to build superior and innovative employees sustain competitive advantages. This study scrutinises the link between transformational leadership work behavior by developing a mediating research model. The samples used in this 235 who creative industries Kebumen. Most of respondents working design production divisions food, craft fashion businesses. analysis model is structural equation (SEM) with Smart PLS software analysis. found that significantly affects behavior. Psychological safety friendship at mediate connection addition, revealed psychological shares positive influence on work. provides insight for leader small business context improve employees' Keywords: Transformational Leadership, Innovative Work Behavior, Safety, Friendship Work.