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This work deals with the effect of transformational leadership (TL) on organisational performance (OP) through the mediating roles of organisational learning (OL) and open innovation (OI). Data was collected from 202 respondents in Tunisian enterprises using non-probabilistic convenience sampling. Based on structural equation modelling, the findings demonstrate a positive effect of TL on OP through an OI mediation. The study highlighted the direct and indirect effects of TL on OP through a double partial mediation of OI and OL. The document sheds new light on the gaps between TL and entrepreneurial leadership, not as a continuum, but as coexisting entrepreneurial leadership styles.
This paper seeks to raise the question as to why knowledge management (KM) initiatives adopted by organisations fail to achieve the intended outcomes. Based on literature, it is argued, first, that internal leadership is the most critical antecedent which leads knowledge workers (KWs) propensity to engage in KM processes and second, that, transformational and transactional leader behaviours are the key predictors of KM propensity. Consequently, four types of transformational leader behaviours and two types of transactional leader behaviours are conceptualised as energisers of KWs propensity to KM processes and thus bring the KM success. Accordingly, the paper extends current understanding of the association between KM and leadership considering the specific leader behaviours in both transformational and transactional leadership theory where neither the KM nor the leadership field provides a detailed explanation of specific leader behaviours.
Drawing on the social exchange theory, this study investigates the influences of transformational leadership (TL) and specific aspects of justice on employee knowledge sharing (KS) behaviours, namely, knowledge collecting (KC) and knowledge donating (KD). Structural equations modelling (SEM) is applied to examine the correlation among the latent factors using data collected from 365 participants at 85 large manufacturing and service firms. The findings indicated that distributive justice (DJ), procedural justice (PJ) and interactional justice (IJ) act as mediating roles in the relationship between TL and KS processes. Specifically, TL and DJ have more significant effects on KD, whereas PJ and IJ have more significant effects on KC. From a practical perspective, the study brings more deep understanding for directors/managers about the effective pathway to improve KC and KD. The findings of this study provide a theoretical basis, which can be used to analyze relationships TL, aspects of justice and KS behaviours. The paper, therefore, significantly extends and refines theories of leadership and social exchange.
This study investigated the critical factors that support knowledge sharing intentions among marketing and management academicians in higher educational institutions. Additionally, it examined the influence of psychological empowerment on knowledge sharing intentions and underlying processes of transmission via mediating roles of organisational commitment. Empirical results from 263 surveyed academicians show that transformational leadership had a very strong influence on organisational climate in an integral model of knowledge sharing intentions. Furthermore, organisational climate had a positive relationship with psychological empowerment which subsequently influence academics’ knowledge sharing intentions. This study’s results suggest that transformational leaders must be aware of the prominence of both psychological empowerment and organisational commitment in order to augment knowledge sharing internally and externally.
In the dynamic knowledge-based landscape, effective leadership has a crucial role in sharing knowledge and expertise towards innovation. Multiple previous research studies have studied the correlation between leadership style and innovative behaviour. Nevertheless, few empirical studies have investigated the mediating influence of psychological empowerment on the connection between organisational leadership and innovative behaviour. The study also examines how creative self-efficacy influences the connection between entrepreneurial leadership and innovative behaviour. This study addressed the knowledge gap by examining the correlation between transformational leadership, entrepreneurial leadership, and innovative behaviour. Additionally, it sought to explore the role of psychological empowerment and creative self-efficacy as mediators in the relationship between entrepreneurial leadership, transformational leadership, and innovative behaviour. A questionnaire was administered to 228 individuals who are employees working in Pakistan’s SMEs. The data were then analysed using Structural Equation Modelling (SEM) with Smart-PLS software. The findings suggest transformational leadership and entrepreneurial leadership heightened innovative behaviour among employees through psychological empowerment and creative self-efficacy. No direct impact was established for transformational leadership on innovative behaviour indicating the presence for mediator. This study contributes to the existing literature by offering empirical proof of the correlation between transformational leadership, entrepreneurial leadership, and innovative behaviour. It also examines the influence of psychological empowerment and creative self-efficacy on innovative behaviour. The practical implication is that to encourage innovative behaviour, leaders need to get down the field to empower and build confidence among employees.
The purpose of this study is to examine the effects of organizational learning, market orientation, and transformational leadership on the organizational innovation and firm’s performance amongst the firms performing in Turkey. Using LISREL, structural equation-model, the data gathered from 330 employees were used to identify the variables that significantly affect the firm’s performance. The results indicated that 32% of firm’s performance is explained by the organizational innovation and market orientation, and organizational innovation has the strongest effect. However, organizational learning has no substantial effect on firm’s performance, and transformational leadership is also found to have an insignificant impact on the organizational innovation.
This study proposed a model to examine the impact of various leadership styles on knowledge management. This case study identified the best leadership style, which can affect the key factors of the knowledge management success. The statistical population was composed of all staff of the Pars Khodro Company headquarters in Iran, in which 226 people were accordingly chosen as the sample. The required data for examining research hypotheses were also collected using questionnaire. Results revealed the impact of leadership styles on knowledge management. The transformational leadership style was consequently found to have a positive and significant impact on the knowledge management key success factors, in contrast with other leadership styles including self-management, pragmatic, conservative and structure-based.
The increasing recognition of universities as a seedbed of new knowledge and technology to boost economic growth, technological improvements, and competitiveness has led to the notion of commercialization of university research outputs to gain traction and popularity in different fora. Despite the significance attached, the commercialization of research outputs and innovation has remained low in universities. The purpose of this study is to lay emphasis on Uganda’s Universities in light of the examination of how institutional pressures and collaboration influence the commercialization of university research output with the mediating role of transformational leadership. Data was collected using a questionnaire from 115 university staff in the 23 chartered universities in Uganda. The paper adopted Exploratory Factor Analysis (EFA) for instrument validity and reliability, and Structural Equation Modeling (SEM) for testing and estimating relations between the commercialization of university research outputs with its antecedents of institutional pressures, collaboration and transformational leadership. The results indicate that the operational measures developed for research commercialization, along with its antecedents satisfy the reliability and validity tests. The proposed measurement scale for research commercialization with its antecedents (institutional pressures, collaboration and transformational leadership) will help practitioners to measure research commercialization performance in universities. The findings demonstrated that transformational leadership mediates the relationship between institutional factors and collaboration with the commercialization in Ugandan Universities.
A leader supports teams and individuals as they turn their creative efforts into innovations (leader as facilitator) and manages the organization's goals and activities aimed at innovation (leader as manager). This review focuses on when and how leadership relates to innovation (i.e., the factors that moderate or mediate the relationship between leadership and innovation). The sample consists of 30 empirical studies in which leadership is treated as the independent variable and innovation as the dependent variable. In addition to reviewing moderating and mediating factors, we identified two factors where the findings are ambiguous. The review proposes three new factors that may mediate or moderate the relationship between leadership and innovation.
Corporate culture and top executives’ leadership behaviour both may drive firm innovativeness. However, resource constraints often force firms to specify one source to spread an innovation orientation. Innovation-oriented corporate culture reflects the values, norms, and artifacts shared by a large set of organisational members; conventional wisdom implies that it fosters innovativeness. In contrast, top executives’ leadership behaviour drives innovations from the top; its influence on product innovation outcomes remains uncertain. This study examines the relative impact of innovation-oriented corporate culture and top executives’ transformational leadership on new product frequency. In so doing, it complements the commonly applied resource-based perspective with an upper echelons perspective, emphasizing top executives as the most important predictors of the firm’s strategic actions. Relying on dyadic data from 136 top executives and 414 subordinates, the results show that an innovation-oriented corporate culture is more effective in enhancing the frequency of new product introductions than top executives’ transformational leadership.
The study on which this paper is based examined the effect of transformational and transactional leadership styles as well as the effect of each component of transformational and transactional leadership on innovative behaviour. A sample of 3 180 respondents from 52 South African companies participated in this research. Two main hypotheses and six sub-hypotheses were tested using multiple regression analysis with and without interaction terms. The results indicate that it is useful to utilise both transformational and transactional leadership styles to enhance employees' innovative behaviour. The study substantiated the expected positive relationship between transformational and transactional leadership style and innovative behaviour. Furthermore, the results showed that amongst the components of these leadership styles, inspirational motivation, intellectual stimulation and contingent reward positively influence innovative behaviour. The results showed no relationship between individual consideration, management-by-exception and innovative behaviour. Contrary to expectations, the results revealed a negative relationship between idealised influence and innovative behaviour. Recommendations and suggestions for further research are provided.
The purpose of this paper is to examine the nature of the relationship between leadership styles, organisational climate, innovation and organisational performance. The study was quantitative in nature using questionnaires submitted by 231 participants from various companies in South Africa. The statistical analysis was based on Structural Equation Modelling (SEM) using the path analysis. The results from SEM reveal that transformational leadership style influences the climate for innovation and organisational performance directly and innovation indirectly. Similarly, a direct relationship between transactional leadership style and organisational performance was found, but no relationship was found between transactional leadership style and innovation. The findings assist managers to better understand which leadership style to adopt when the aim is to increase organisational performance using innovation as an enabler. This is the first study that investigated the nature of the relationship between leadership styles, organisational climate, innovation and organisational performance taking into account the nature of innovation (i.e., incremental and radical) and the stage at which innovation is operating in the innovation process.
The purpose of this research is to investigate the effect of transformational and transactional leadership styles on firms’ financial performance in a context of knowledge-intensive firms and the mediating role of exploitative and exploratory innovations in this relationship. To achieve this purpose, a quantitative research was conducted on 201 top executives working in knowledge-intensive firms in the context of an emerging country, namely Tunisia. The data analysis was performed via the structural equation modelling method. As a result, the empirical study revealed that the transformational leadership style is a key determinant of exploitative and exploratory innovations and firms’ financial performance. In this perspective, the two types of innovation partially mediate the link between transformational leadership and financial performance. However, transactional leadership affects only exploitative innovation. This original study offers a better understanding of the contribution of the transformational and transactional leadership styles on exploitative and exploratory innovations and the firms’ financial performance in a context of firms’ intensive knowledge. It offers a reading grid for managers of knowledge-intensive firms to better lead and identify key elements that may boost the firms’ innovation ambidexterity and performance.
It is widely accepted that CEOs with a transformational leadership style can promote innovation in the organisations they lead, but the specific ways in which they influence followers and shape the organisational context to increase innovation remain largely unexplored. Improvement of our understanding of this relationship requires identifying and explaining the mechanisms that allow transformational CEOs to mobilise employees towards an active support of innovation. We argue that top managers who portray a transformational leadership style have a positive effect on organisational innovation by improving how the firm exchanges and communicates information and knowledge, that is, by increasing employees’ participation and social capital. Data from a sample of 194 executives from 97 Ecuadorian small- and medium-sized firms provide support for our hypotheses.
Enriching the literature on innovation and knowledge management, this paper examines the impact of various types of innovation (product, process, marketing, and organization) on the knowledge sharing of SMEs through transformational leadership. A total of 437 samples were collected from SMEs owners/managers in the service sector of a developing economy through a quantitative method. The data were analyzed using a SMART PLS-SEM. The findings confirmed the hypotheses that innovation have a significant influence on knowledge sharing; whiles as transformational leadership had a non-moderating effect. Besides consolidating the existing theory on the importance of innovation for explaining a variation in knowledge sharing activities, the findings also inform SMEs and policymakers to be cautious of implementing transformational leadership style as it may have a non-moderating impact in today’s entrepreneurial activities. Finally, we believe that this study will provide researchers with some key aspects to explore in this area of study and encourage applications of objective and subjective measures to improve the validity of results.
The research findings regarding the influence of entrepreneurial orientation and transformational leadership on organisational performance are inconsistent. This research aims to investigate the direct influence of entrepreneurial orientation and transformational leadership on organisational performance and their indirect influence with the mediation of innovation. The population of this research is 301 business units of Indonesia’s State-Owned Electricity Company of Java and Bali distribution region, from which 168 were selected as the sample. The managerial or practical implications of this research are that it provides a better understanding, proposes suggestions to the organisation in maximising and optimising its intangible resources in relation with entrepreneurial orientation, and encourages activities related to its innovation in order to increase its organisational performance, especially in the specific nature of state-owned enterprise’s context and business model. In addition, the organisation needs to encourage transformational leadership among its leaders to enhance activities related to innovation.
This study investigated the relationships between transformational leadership (TL), entrepreneurial leadership (EL), business model innovation (BMI) and competitive advantage, as well as the role of environmental uncertainty in these relationships. The importance of BMI and leadership style for the firms and the gaps identified in literature motivated the need for this paper. Previous literature has not fully explained in detail the antecedents of BMI or how BMI improves competitive advantage of organisations. Thus, an empirical model was used to analyse data gathered from a survey of 474 small- and medium-sized enterprises (SMEs) from several sectors in Greece. The findings reveal the contribution of leadership styles on BMI, the direct contribution of TL and EL on competitive advantage, as well as the contribution of BMI in competitive advantage in all responding SMEs, those SMEs with low scores of business environmental uncertainty and those SMEs with high scores of business environmental uncertainty.
Transformational leadership is an important factor affecting organisational performance. Many studies have shown that transformational leadership has positive and significant influence on organisational performance. Based on a literature review and previous work, this study aims to investigate the impact of transformational leadership on organisational performance and to examine whether organisational learning and open innovation is a mediator between their relationships. A quantitative analysis is performed via a questionnaire. The data analysis was conducted thanks to the structural equation modelling method. The research sample consisted of 202 respondents from Tunisian enterprises chosen through non-probabilistic convenience sampling. The findings of this study provide evidence that transformational leadership, organisational learning and open innovation have significant positive relationship influence on organisational performance. The research also demonstrates that there is a significant effect on the role of mediation in organisational learning and open innovation on the relationship between transformational leadership and organisational performance. The study suggests that if organisation principals use the strategies of transformational leadership and organisational learning at the same time, organisational learning was highly effective to achieve open innovation and subsequently a performance within the organisation.
To enhance competitiveness, organisations should excel in adopting new business processes and ensuring the successful implementation of innovative projects. This study examined the impact of transformational, transactional, and entrepreneurial leadership styles on the innovation process, with a focus on employee innovative behaviour and the climate for innovation as mediating factors. A total of 303 participants from three organisations in the financial services sector (banking and insurance) in Namibia took part in the study.
The findings suggest that employing transactional and entrepreneurial leadership styles proves beneficial for fostering innovation within organisations. Specifically, entrepreneurial leadership demonstrates positive effects on both employees’ innovative behaviour and the establishment of an innovation-friendly climate. The study reveals that a conducive climate for innovation significantly contributes to overall innovation. Moreover, the results indicate that only the climate for innovation serves as a significant mediator in the relationship between transactional leadership and the innovation process, as well as between entrepreneurial leadership and the innovation process.
This study significantly advances innovation management literature by analysing the impact of work-life balance (WLB), organisational learning capability (OLC), and transformational leadership (TL) on product innovation performance (PIP). By employing Partial Least Squares Structural Equation Modelling (PLS-SEM) combined with Necessary Condition Analysis (NCA), it clarifies the roles of these variables in Brazil’s manufacturing sector. Data from 332 organisations revealed that OLC and TL are vital for enhancing PIP, while WLB, though not directly influential, is crucial for innovation. This finding offers a new understanding of WLB’s role in innovation management and highlights the complexity of factors driving product innovation. Integrating NCA with PLS-SEM, this research enriches theoretical debates and provides practical insights for optimising innovation strategies. It fills a gap in the literature by analysing how these key factors interact to impact PIP, contributing to both academic research and practical innovation management.