This study tests and analyzes the influence of empowering leadership on employee creativity which is mediated by psychological empowerment. Researchers conduct survey method on state-owned bank employees (ABC Bank) in Pacitan, East Java, Indonesia. Purposive sampling is selected with Likert scale as measurement. The population of this study is 166 respondents, who are permanent employees of the ABC Bank. The data analysis technique used is SPSS 24. The results of this study find that: (1) there is an influence of empowering leadership on psychological empowerment, (2) there is an influence of empowering leadership on individual creativity, (3) there is an influence of psychological empowerment on individual creativity, and (4) the influence of empowering leadership on individual creativity is mediated by psychological empowerment. This study ignores other types of leadership. Further study is needed to examine other types of leadership besides empowering leadership. The level of analysis of this study is individual, so further study could examine empowering leadership conceptualized at the group level because followers will be influenced not only by the dyadic relationship with the leader, but also by the dynamics of the members of the empowered group. This study provides theoretical enrichment from the aspect of empowering leadership, especially at the individual level. Leaders can increase employee creativity by empowering them to do their jobs. Additionally, by creating a work environment that ensures employees feel empowered psychologically.

Abstract
1. Introduction
2. Literature Review and HypothesisDevelopment
    2.1. Empowering Leadership and PsychologicalEmpowerment
    2.2. Empowering Leadership and IndividualCreativity
    2.3. Psychological Empowerment and IndividualCreativity
3. Research Methods
4. Results
    4.1. Respondent Description
    4.2. Hypothesis Testing
5. Discussion
6. Contributions
7. Limitation and Recommendation
References

• Yuni SISWANTI(Department of Management, Business and Economic Faculty, Universitas Pembangunan Nasional “Veteran” Yogyakarta, Indonesia.)
• Muafi MUAFI(Department of Management, Business and Economics Faculty, Universitas Islam Indonesia) Corresponding Author