The Determinants of Employees’ Innovative Behavior in China SMEs: Leader-Member Exchange (LMX) Theory Perspective

Today's Chinese SMEs are dynamic and subject to constant challenges. Demonstrating employees' innovative behavior (EIB) help create a competitive advantage, attract customers, build loyal client base. Based on the literature review, study utilizes theoretical, hypothesis constructed, employs Leader-member Exchange Theory identify key elements influencing employee in context. We propose that transformational leadership (TL) organizational justice (OJ) would be positive factors significantly impact EIB. Transformational is essential fostering an environment. Studying TL's influence EIB could provide insights into how leaders can encourage support innovation SMEs. In addition, will motivation, engagement, commitment innovation. Therefore, studying role of promoting strategies organizations utilize promote we further argue high levels knowledge sharing (KS) among employees strengthen this mechanism.