The Effect of Employee Development Policy, Work Environment, and Transformational Leadership on Employee Creativity in Indonesia's Creative Industries

This research investigates the impact of employee development policy, work environment, and transformational leadership on employee creativity within Indonesia's dynamic creative industries. A quantitative analysis employing Structural Equation Modeling (SEM) with Partial Least Squares (PLS) was conducted to analyze data collected from 120 employees across various sectors of the creative industry. Descriptive statistics, measurement model assessment, structural model analysis, and hypothesis testing were employed to examine the relationships between the variables of interest. The results reveal that employee development policy, transformational leadership, and work environment significantly influence employee creativity within Indonesia's creative industries. Specifically, organizations that prioritize employee development, foster transformational leadership behaviors, and provide supportive work environments are more likely to enhance employee creativity. These findings underscore the importance of organizational strategies and leadership practices in fostering a culture of innovation and creativity within Indonesia's burgeoning creative economy.


INTRODUCTION
The creative industries in Indonesia have experienced rapid growth and emerged as significant contributors to the nation's economy and cultural landscape.These industries cover a wide range of sectors, including advertising, design, architecture, fashion, film, music and digital media [1]- [3].The creative economy in Indonesia has been recognized for its potential and has received attention from the government, leading to the establishment of laws and regulations to support its development [4].The government has also provided facilitation such as business training, access to capital, and business start-up assistance to encourage the growth of the culinary industry, which is the largest contributor to the creative economy sector [5].In addition, there is a need to improve the quality of education, develop ICT infrastructure, and create regulations that facilitate creative economy actors to further increase the contribution of the creative industry to the country's GDP.
At the heart of economic growth in Indonesia's creative industries is the creative abilities of the workforce, which drive innovation, artistic expression, and economic value.To maintain a competitive advantage, organizations in these industries are increasingly focused on developing an environment that nurtures and harnesses the creative potential of their employees [6], [7].This includes factors such as improving education quality, building sufficient ICT infrastructure, making regulations that facilitate creative economy actors, and creating an organizational culture that motivates workers to improve their creativity level [4] [8].Additionally, government support is needed to promote patents, improve policies for small businesses, and provide guidance in developing innovation in product design and marketing [9].By investing in the creative abilities of their workforce and creating an enabling environment, organizations in Indonesia's creative industries can drive further growth and contribute to the overall economic development of the country.
Despite the acknowledged importance of employee creativity, there remains a gap in understanding the specific factors that influence its enhancement within the unique context of Indonesia's creative industries.While numerous studies have explored the drivers of creativity in organizational settings, few have delved into the intricacies of this phenomenon within the dynamic landscape of Indonesia's creative economy [10]- [12].Previous research has focused on creative performance in the fashion industry, manufacturing industries, and game industry [13].
Additionally, studies have examined the effect of psychological capital and curiosity on employee creativity in retail stores [14].Furthermore, the impact of human development, ICT development index, and creative economy export value on the creative economy GDP has been analyzed [4].The effects of intrinsic motivation, dimensions of transformational leadership, and personal factors on employee creativity have been investigated in Indonesian start-ups [15].Finally, the influence of organizational culture and work environment on employee performance has been studied in PT.
Galih Indonesian Aesthetics [16].However, there is still a research gap in understanding the specific factors that enhance employee creativity within Indonesia's creative industries.Thus, this research seeks to address this gap by investigating the effects of employee development policy, work environment, and transformational leadership on employee creativity within Indonesia's creative industries.
The research aims to address three key questions guiding the inquiry: Firstly, it seeks to explore the relationship between employee development policy and employee creativity within Indonesia's creative industries.Secondly, it aims to understand the influence of the work environment on employee creativity within these industries.Lastly, it endeavors to assess the impact of transformational leadership on employee creativity in Indonesia's creative sectors.

Employee Development Policy
Investing in employee development is crucial for fostering a culture of innovation and creativity within organizations.Research has shown that organizations that prioritize employee learning and growth experience higher levels of job satisfaction, motivation, and performance among their employees [17].Providing opportunities for continuous learning and skills development not only enhances individual creativity but also contributes to organizational innovation and competitiveness [18].Employee development policies encompass strategies, initiatives, and programs implemented by organizations to improve the skills, knowledge, and capabilities of their workforce [19].
These policies aim to bridge the gap between desired and actual employee performance, reduce frustration and anxiety, and increase employee satisfaction [20].By equipping employees with the necessary skills and knowledge, organizations can maximize job performance and meet the challenges posed by competition, changing technology, globalization, and evolving customer needs [21].Therefore, it is hypothesized that organizations with robust employee development policies are more likely to cultivate a conducive environment for employee creativity within Indonesia's creative industries.

H1: Employee Development Policy has a positive effect on Employee Creativity:
This hypothesis suggests that organizations that prioritize employee development through training, skill-building, and career advancement opportunities will experience higher levels of employee creativity.

Work Environment
The work environment encompasses various physical, social, and psychological factors that influence employee behavior, attitudes, and performance.Within creative industries, a supportive and stimulating work environment is essential for fostering employee creativity.[22], [23] emphasized the importance of providing employees with the necessary resources, autonomy, and collaboration opportunities to engage in creative work.Similarly, [24], [25] highlighted the role of job characteristics such as task variety, autonomy, and feedback in enhancing employee creativity.Therefore, it is posited that organizations that create a positive and conducive work environment, characterized by open communication, collaborative culture, and creative autonomy, are more likely to inspire and unleash the creative potential of their employees in Indonesia's creative industries.
H2: Work Environment positively influences Employee Creativity: This hypothesis posits that organizations with supportive work environments characterized by open communication, collaboration, and autonomy will foster higher levels of employee creativity.

Transformational Leadership
Transformational leadership involves inspiring and motivating employees to achieve higher levels of performance by articulating compelling visions, providing intellectual stimulation, and demonstrating individualized consideration.
Transformational leaders positively influence employee creativity by encouraging risktaking, providing constructive feedback, and promoting a shared vision of organizational success [26].They can empower and inspire their followers to transcend self-interest and pursue common goals, thereby unleashing their creative potential [27].
In the context of creative industries, transformational leaders play an important role in fostering a culture of innovation and creativity [28].Thus, it is hypothesized that organizations with transformational leaders are more likely to foster employee creativity within Indonesia's creative industries.

H3: Transformational Leadership positively influences Employee Creativity:
This hypothesis suggests that leaders who exhibit transformational leadership behaviors, such as inspiring vision, intellectual stimulation, and individualized consideration, will empower employees to unleash their creative potential.

Research Design
This study employs a quantitative research design to investigate the relationships between employee development policy, work environment, transformational leadership, and employee creativity within Indonesia's creative industries.A cross-sectional survey will be conducted to collect data from employees working in various sectors of the creative industry.The use of a survey allows for the collection of quantitative data that can be analyzed statistically to test hypotheses and identify patterns of relationships between variables.

Population and Sample
The population of this study comprises employees working in Indonesia's creative industries, including sectors such as advertising, design, architecture, fashion, film, music, and digital media.A convenient sampling technique will be utilized to select participants from organizations within these sectors.A sample size of 120 participants will be targeted for this study, ensuring an adequate representation of the diverse workforce within Indonesia's creative industries.

Data Collection
Data will be collected using structured questionnaires designed to measure the variables of interest: employee development policy, work environment, transformational leadership, and employee creativity.The questionnaires will be distributed electronically to the selected participants, accompanied by a cover letter explaining the purpose of the study and ensuring confidentiality and anonymity.Participants will be requested to respond honestly and accurately to the questionnaire items.

Data Analysis:
The collected data will undergo analysis utilizing Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) algorithm, a robust statistical technique suited for examining intricate relationships among multiple variables within a structural model.SEM-PLS enables simultaneous estimation of both the measurement model, involving confirmatory factor analysis (CFA), and the structural model, incorporating path analysis.The data analysis process will encompass several steps: initial data screening to address missing values, outliers, and multicollinearity; estimation of the measurement model to assess the reliability and validity of measurement scales through CFA; estimation of the structural model to test hypothesized relationships between constructs, evaluating path coefficients for significance and strength; model evaluation using fit indices like the goodnessof-fit (GoF) index, standardized root mean square residual (SRMR), and normed fit index (NFI) to gauge model-data fit; and interpretation of findings to elucidate the relationships between employee development policy, work environment, transformational leadership, and employee creativity within Indonesia's creative industries in alignment with the research questions and hypotheses [29].

Descriptive Statistics
In this section, we present descriptive statistics for the demographic characteristics of the sample and the main variables of interest, including employee development policy, work environment, transformational leadership, and employee creativity.Descriptive statistics provide insights into the central tendencies and variability of the data.The analysis of participant demographics reveals significant insights into the workforce composition within Indonesia's creative industries.In terms of age diversity, the majority of participants fall within the 20-40 years age range, indicating a predominantly young workforce.This trend may reflect the attractiveness of creative careers to younger individuals or early entry into the workforce.Understanding age demographics is crucial for tailoring talent development and organizational culture strategies.Gender diversity is also notable, with a slight majority of male participants, suggesting industry-specific gender compositions.Organizations should prioritize gender equality initiatives for inclusive workplaces.Regarding education, the sample exhibits a high level of academic attainment, primarily holding Bachelor's and Master's degrees, necessitating tailored training programs.Furthermore, the distribution of participants based on years of experience highlights a mix of early-career and mid-career professionals, emphasizing the importance of talent management and knowledge transfer strategies within organizations.

Measurement Model
The measurement model assessment involves evaluating the reliability and validity of the measurement scales used to operationalize the constructs.This is typically done through Confirmatory Factor Analysis (CFA), where factor loadings, Cronbach's alpha, composite reliability, and average variance extracted (AVE) are examined.Here's the discussion of the measurement model for each variable: The assessment of the measurement model reveals strong reliability and validity for the constructs of Employee Development Policy (EDP), Work Environment (WEV), Transformational Leadership (TLD), and Employee Creativity (EPC).Factor loadings for the indicators of each construct are high and statistically significant, indicating robust associations with their respective latent constructs.Cronbach's alpha values indicate acceptable to high internal consistency reliability for all scales, with composite reliability values exceeding the recommended threshold of 0.70, affirming good reliability.The Average Variance Extracted (AVE) values demonstrate convergent validity, with variance captured by the indicators surpassing measurement error.However, for Transformational Leadership, the AVE value slightly falls below the threshold, suggesting a potential minor discrepancy.Nonetheless, overall, the measurement model assessment provides confidence in the subsequent structural model analysis, underscoring the reliability and validity of the employed scales.

Discriminant Validity
Discriminant validity is the extent to which a construct is distinct from other constructs in a measurement model.It ensures that each construct measures a unique aspect of the phenomenon under study.One common method to assess discriminant validity is by examining the correlations between constructs.If the correlations between constructs are lower than the square root of the AVE for each construct, discriminant validity is supported.The correlation matrix highlights the relationships between Employee Creativity, Employee Development Policy, and Transformational Leadership, as well as their associations with the Work Environment.Generally, correlations between constructs are lower than the square root of the Average Variance Extracted (AVE), indicating discriminant validity.However, some correlations, such as those between Employee Development Policy and Employee Creativity (0.634) and between Transformational Leadership and Employee Creativity (0.771), are close to or exceed the square root of the AVE for their respective constructs, suggesting potential overlap.This indicates the need for further scrutiny to ensure clear conceptual distinctions between these constructs and to address any potential issues with discriminant validity.The fit indices for both the saturated model and the estimated model are quite similar, indicating that the estimated model fits the data reasonably well.The SRMR (Standardized Root Mean Square Residual) for both models is 0.104, suggesting an acceptable fit.The d_ULS (Degree of Unweighted Least Squares) and d_G (Degree of Generalized Least Squares) values for both models are 0.843 and 0.420, respectively, indicating a reasonable fit.The Chi-Square value for both models is 299.019, which is not significant at the conventional alpha level, suggesting a good fit.The NFI (Normed Fit Index) for both models is 0.716, indicating an acceptable fit.Overall, based on these fit indices, it can be concluded that the estimated model fits the data reasonably well.However, it's important to consider these fit indices in conjunction with theoretical considerations and interpret the results cautiously.R Square, also known as the coefficient of determination, measures the proportion of variance in the dependent variable (in this case, Employee Creativity) that is explained by the independent variables (Employee Development Policy, Work Environment, and Transformational Leadership) included in the model.In this context, an R Square value of 0.618 indicates that approximately 61.8% of the variance in Employee Creativity can be explained by the combined influence of Employee Development Policy, Work Environment, and Transformational Leadership.This suggests that these three factors collectively account for a substantial portion of the variability in employee creativity within Indonesia's creative industries.A higher R Square value indicates a better fit of the model to the data.However, it's essential to interpret R Square in conjunction with other model fit indices and theoretical considerations to assess the overall adequacy of the model.Q², or Cross-validated R Square, provides an estimate of the predictive relevance of the model.It measures the proportion of variance in the dependent variable that can be predicted by the independent variables when the model is applied to new data.In this case, a Q² value of 0.608 suggests that the model has good predictive relevance, as approximately 60.8% of the variance in Employee Creativity can be predicted by the independent variables.This indicates that the model is likely to generalize well to new samples or populations within Indonesia's creative industries.Q² values closer to 1 indicate better predictive relevance, implying that the model can accurately predict the dependent variable based on the independent variables.

Hypothesis Testing
Hypothesis testing involves assessing whether the relationships hypothesized between variables in the structural model are statistically significant.The results provided include the original sample statistics (O), sample mean (M), standard deviation (STDEV), T-statistics, and P-values for each hypothesized relationship between the independent variables (Employee Development Policy, Transformational Leadership, Work Environment) and the dependent variable (Employee Creativity).In summary, the results of hypothesis testing confirm that all three independent variables-Employee Development Policy, Transformational Leadership, and Work Environmentsignificantly influence Employee Creativity within Indonesia's creative industries.These findings have important implications for organizational practice, highlighting the importance of investing in employee development, fostering transformational leadership behaviors, and creating conducive work environments to enhance employee creativity and innovation.
The results indicate that the relationship between Employee Development Policy and Employee Creativity is statistically significant.The T-statistics value of 4.698 suggests that the observed relationship is unlikely to have occurred by chance.The P-value of 0.000 indicates that the relationship is significant at the conventional alpha level of 0.05, providing strong evidence to reject the null hypothesis that there is no relationship between Employee Development Policy and Employee Creativity.Therefore, the hypothesis that Employee Development Policy positively influences Employee Creativity is supported.
Similarly, the results show that the relationship between Transformational Leadership and Employee Creativity is statistically significant.The T-statistics value of 5.673 and the P-value of 0.000 indicate that the observed relationship is highly unlikely to have occurred by chance.Thus, the null hypothesis that there is no relationship between Transformational Leadership and Employee Creativity is rejected in favor of the alternative hypothesis, supporting the notion that Transformational Leadership positively influences Employee Creativity.
Similarly, the results indicate that the relationship between Work Environment and Employee Creativity is statistically significant.The T-statistics value of 2.820 and the P-value of 0.000 provide evidence to reject the null hypothesis, indicating that there is a significant relationship between Work Environment and Employee Creativity.Therefore, the hypothesis that a positive work environment influences employee creativity is supported.

Discussion
In this chapter, we delve into the implications of our findings, discuss their significance in the context of existing literature, and provide insights for organizational practice, policy, and future research within Indonesia's creative industries.
We begin by interpreting the results of our analysis, which revealed significant relationships between employee development policy, work environment, transformational leadership, and employee creativity.Specifically, we found that organizations that prioritize employee development, foster transformational leadership behaviors, and provide supportive work environments tend to have higher levels of employee creativity within Indonesia's creative industries.These findings underscore the importance of organizational strategies and leadership practices in nurturing a culture of innovation and creativity.
Employee development, transformational leadership, and a work environment conducive to employee creativity have been shown to have a positive impact in various organisational contexts.Research has shown that transformational leadership positively influences employee adaptation, which in turn enhances workforce creativity [30].In addition, transformational leadership has been found to have a significant positive influence on the work environment, while organisational culture has a significant negative impact on the work environment [31].Work environment, in turn, has a significant positive influence on performance [32].In addition, a good organisational culture has been found to mediate the relationship between transformational leadership and employee creativity [33].Authentic and transformational leadership have also been found to have positive effects on organisational citizenship behavior (OCB) and employee creativity, with OCB fully mediating the relationship between these types of leadership and employee creativity [34].Finally, transformational leadership has been found to have a positive and direct influence on employee creativity and organizational innovation, with employee creativity also positively impacting organisational innovation.

Implications for Practice
Organizational practitioners within Indonesia's creative industries can derive several practical implications from our findings.Firstly, investing in employee development initiatives such as training programs, skill-building workshops, and career development opportunities can enhance employee creativity by providing them with the necessary knowledge, skills, and resources to innovate effectively.Secondly, fostering transformational leadership behaviors-such as inspiring vision, intellectual stimulation, and individualized consideration-can empower employees to unleash their creative potential and drive organizational innovation.Finally, creating supportive work environments characterized by open communication, collaboration, and autonomy can cultivate a culture of creativity and innovation, thereby fostering sustainable growth and competitiveness within Indonesia's creative industries.

Policy Recommendations
Policymakers can also leverage our findings to formulate policies aimed at promoting creativity and innovation within Indonesia's creative economy.By incentivizing organizations to invest in employee development, leadership development, and workplace innovation initiatives, policymakers can create an enabling environment for creativity to flourish, thereby driving economic growth, job creation, and social development within the country.

Future Research Directions
While our study provides valuable insights into the factors influencing employee creativity within Indonesia's creative industries, several avenues for future research remain unexplored.For instance, further investigation is warranted to examine the mechanisms through which employee development policy, transformational leadership, and work environment influence employee creativity, as well as the boundary conditions that may moderate these relationships.Additionally, longitudinal studies could be conducted to assess the long-term impact of organizational interventions on employee creativity and organizational performance.

CONCLUSION
In conclusion, this study sheds light on the factors that contribute to employee creativity within Indonesia's creative industries.By examining the roles of employee development policy, work environment, and transformational leadership, this research provides valuable insights for organizational practitioners, policymakers, and researchers.The findings highlight the importance of investing in employee development initiatives, fostering transformational leadership behaviors, and creating conducive work environments to stimulate creativity and innovation among employees.By embracing these practices, organizations within Indonesia's creative industries can not only enhance employee satisfaction and engagement but also drive sustainable growth and competitiveness in the global market.Moving forward, further research is encouraged to explore additional factors influencing creativity, as well as to investigate the effectiveness of interventions aimed at enhancing creativity within the unique context of Indonesia's creative economy.

Table 4 .
Model Fit Results Test