Influence of positive leadership on team creativity in SMEs: Chain mediation research based on psychological safety in the team and entrepreneurial passion

Abstract

This study examines the role of positive leadership in fostering team creativity in the context of small and medium-sized enterprises (SMEs) in China, focusing on the mediating mechanisms of team psychological safety and team entrepreneurial passion as dynamic internal factors linking leadership behaviors to creative team outcomes. Data were collected from 604 team leaders from different SME sectors and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that positive leadership has both direct and indirect effects on team creativity, with psychological safety and entrepreneurial passion serving as important mediators that foster trust, intrinsic motivation, and emotional energy conducive to innovation. This study makes a theoretical contribution by proposing a novel integrative framework that links positive leadership to creative behavior via psychological and emotional team dynamics and offers practical insights for SME leaders seeking to foster a culture of sustainable innovation under resource constraints and rapidly evolving business conditions.