Does inclusive leadership affect project success? The mediating role of perceived psychological empowerment and psychological safety

Purpose: Through the lens of the leader–member exchange theory, this study assessed the relationship between inclusive leadership (IL) and project success by incorporating the mediating roles of psychological empowerment (PE) and psychological safety (PS). Design/methodology/approach: Time-lagged data were collected from 328 employees working in project-based organisations across the information technology industry. Structural equation modelling (SEM) using AMOS 26 was employed for data analysis. Findings: By using the SEM approach, the confirmatory factor analysis had verified the distinctiveness of the variables used in this study. The findings displayed that IL increased project success both directly and indirectly through the mediating roles of PE and PS. Originality/value: This study addressed two research questions that have been left unanswered in the literature. The initial research question is “how IL enhances project success?”, and this study found that IL enhanced project success. The second research question is “what are the suggested mechanisms for IL to promote project success?” This study has proven that IL enhanced project success through two important mediating mechanisms, namely, PE and PS.