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Empowering leadership is often considered unequivocally positive for employees, but recent studies have shown that this ostensibly straightforward effect is more complex. The dual facets of the effect of empowering leadership – especially on employees’ innovative behaviour – have received insufficient attention. Based on job demand-resource (JD-R) theory, this study aims to propose a theoretical framework for the relationship between empowering leadership and employees’ innovative behaviours with a dual process model of gain and loss.

This study is survey based, with 261 paired leader–employee data points collected in the People’s Republic of China.

The results show that empowering leadership has a “double-edged” effect on employees’ innovative behaviours: it affects innovative behaviours positively through employee job engagement and negatively through emotional exhaustion. Moreover, trust in leaders moderates the mediating roles of job engagement and emotional exhaustion.

This study contends that empowering leadership has a dual impact on employees and proposes a promising model of this double-edged effect to contrast with other complex models in the empowering leadership literature. Furthermore, this study uses JD-R theory to deeply explore the dual process whereby empowering leadership influences employees’ innovative behaviour and provides practical guidance for business management.