Transformational Leadership and Organizational Performance
The Mediating Role of Organizational Innovation
The study is an investigation of transformational leadership impact on organizational performance; the mediating role of organizational innovation. The study revealed that organizational innovation has mediated significant impact on organizational performance. The research found that transformational leadership and organizational performance has strong relationship. Therefore, it will help the managers to create such leadership style in the organizations. Pakistani organizations need an environment where leaders motivate and encourage the employees who are wishing to become more creative and effective in leading the successful organizations.
Amabile, T. M. (1998). How to kill creativity (pp. 77-87). Harvard Business School Publishing.
Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. DOI: https://doi.org/10.2307/256995
Academy of Management journal, 39(5), 1154-1184.
Aragón-Correa, J. A., García-Morales, V. J., & Cordón-Pozo, E. (2007). Leadership and organizational learning's role on innovation and performance: Lessons from Spain. Industrial marketing management, 36(3), 349-359. DOI: https://doi.org/10.1016/j.indmarman.2005.09.006
ALBORS-GARRIGOS, J. O. S. E., IGARTUA, J. I., & PEIRO, A. (2018). INNOVATION MANAGEMENT TECHNIQUES AND TOOLS: ITS IMPACT ON FIRM INNOVATION PERFORMANCE. International Journal of Innovation Management, 1850051 DOI: https://doi.org/10.1142/S1363919618500512
Baker, W. E., & Sinkula, J. M. (2002). Market orientation, learning orientation and product innovation: delving into the organization's black box. Journal of market-focused management, 5(1), 5-23. DOI: https://doi.org/10.1023/A:1012543911149
Balkin, D. B., Markman, G. D., & Gomez-Mejia, L. R. (2000). Is CEO pay in high-technology firms related to innovation? Academy of Management journal, 1118-1129. DOI: https://doi.org/10.2307/1556340
Bass, B., & Riggio, R. (2006). Transformational leadership. Mahwah, NJ: Lawrence Erlbaun Associates. Inc. Publishers.
Bass, B. M. (1985). Leadership and performance beyond expectations: Collier Macmillan.
Bass, B. M. (1997). Does the transactional–transformational leadership paradigm transcend organizational and national boundaries? American psychologist, 52(2), 130. DOI: https://doi.org/10.1037/0003-066X.52.2.130
Bass, B. M. (1999). Two decades of research and development in transformational leadership. European journal of work and organizational psychology, 8(1), 9-32. DOI: https://doi.org/10.1080/135943299398410
Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of applied psychology, 88(2), 207. DOI: https://doi.org/10.1037/0021-9010.88.2.207
Bass, B. M., & Riggio, R. E. (2006). Transformational Leadership . Mahwah, NJ: L. I Lawrence Erlbaum. DOI: https://doi.org/10.4324/9781410617095
Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy of Management journal, 39(4), 779-801.
Bénabou, R., & Tirole, J. (2002). Self-confidence and personal motivation. The Quarterly Journal of Economics, 117(3), 871-915. DOI: https://doi.org/10.1162/003355302760193913
Bénabou, R., & Tirole, J. (2011). Identity, morals, and taboos: Beliefs as assets. The Quarterly Journal of Economics, 126(2), 805-855. DOI: https://doi.org/10.1093/qje/qjr002
Berson, Y., Nemanich, L. A., Waldman, D. A., Galvin, B. M., & Keller, R. T. (2006). Leadership and organizational learning: A multiple levels perspective. The leadership quarterly, 17(6), 577-594. DOI: https://doi.org/10.1016/j.leaqua.2006.10.003
Cailing Feng, Xiaoyu Huang, Lihua Zhang, (2016). A multilevel study of transformational leadership, dual organizational change and innovative behavior in groups. Journal of Organizational Change Management, 29(6),855-877. https://doi.org/10.1108/JOCM-01-2016-0005 DOI: https://doi.org/10.1108/JOCM-01-2016-0005
Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial marketing management, 31(6), 515-524. DOI: https://doi.org/10.1016/S0019-8501(01)00203-6
Cameron, K., & Quinn, R. (2011). Diagnosing and changing organizational culture . Hoboken: NJ: Wiley.
Corley, K., & Gioia, D. (2011). Building theory about theory building: What constitutes a theoretical contribution? Academy of Management Review, 36(1), 12-32. DOI: https://doi.org/10.5465/amr.2009.0486
Cooke, P. (2001). Regional innovation systems, clusters, and the knowledge economy. Industrial and corporate change, 10(4), 945-974. DOI: https://doi.org/10.1093/icc/10.4.945
Damanpour, F. (1996). Organizational complexity and innovation: developing and testing multiple contingency models. Management science, 42(5), 693-716. DOI: https://doi.org/10.1287/mnsc.42.5.693
Devaraj, S.; Krajewski, L.; Wei, J. C. 2007. Impact of eBusiness technologies on operational performance: the role of production information integration in the supply chain, Journal of Operations Management 25(6): 1199–1216. http://dx.doi.org/10.1016/j.jom.2007.01.002 DOI: https://doi.org/10.1016/j.jom.2007.01.002
Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management journal, 39(4), 949-969.
Dorfman, P. W. (1996). International and cross-cultural leadership research. Handbook for international management research, 2.
Ebrahimi, P., Moosavi, S. M., & Chirani, E. (2016). Relationship between Leadership Styles and Organizational Performance by Considering Innovation in Manufacturing Companies of Guilan Province. Procedia-Social and Behavioral Sciences, 230, 351-358. DOI: https://doi.org/10.1016/j.sbspro.2016.09.044
Elkins, T., & Keller, R. T. (2003). Leadership in research and development organizations: A literature review and conceptual framework. The leadership quarterly, 14(4), 587-606. DOI: https://doi.org/10.1016/S1048-9843(03)00053-5
Eveleens, C. (2010). Innovation management; a literature review of innovation process models and their implications. Science, 800(2010), 900.
García-Morales, Víctor Jesús & Jiménez-Barrionuevo, María Magdalena & Gutiérrez-Gutiérrez, Leopoldo, 2012. "Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of Business Research, 65(7), 1040-1050. DOI: https://doi.org/10.1016/j.jbusres.2011.03.005
Garvin, D. A. (1993). Building a learning organization. Harvard business review, 71(4), 78-91.
Gold, A. H., & Arvind Malhotra, A. H. S. (2001). Knowledge management: An organizational capabilities perspective. Journal of management information systems, 18(1), 185-214. DOI: https://doi.org/10.1080/07421222.2001.11045669
Gumusluoğlu, L., & Ilsev, A. (2009). Transformational leadership and organizational innovation: the roles of internal and external support for innovation. Journal of Product Innovation Management, 26(3), 264-277. DOI: https://doi.org/10.1111/j.1540-5885.2009.00657.x
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions: American Psychological Association. DOI: https://doi.org/10.1037/a0023086
Hartog, D. N., Muijen, J. J., & Koopman, P. L. (1997). Transactional versus transformational leadership: An analysis of the MLQ. Journal of occupational and organizational psychology, 70(1), 19-34. DOI: https://doi.org/10.1111/j.2044-8325.1997.tb00628.x
Hislop, D. (2013). Knowledge management in organizations: A critical introduction: Oxford University Press.
Homburg, C., & Pflesser, C. (2000). A multiple-layer model of market-oriented organizational culture: Measurement issues and performance outcomes. Journal of marketing research, 37(4), 449-462. DOI: https://doi.org/10.1509/jmkr.37.4.449.18786
Hurley, R. F., & Hult, G. T. M. (1998). Innovation, market orientation, and organizational learning: an integration and empirical examination. The Journal of Marketing, 42-54. DOI: https://doi.org/10.1177/002224299806200303
Hurmelinna‐Laukkanen, P., Sainio, L. M., & Jauhiainen, T. (2008). Appropriability regime for radical and incremental innovations. R&d Management, 38(3), 278-289.
Jardim-Goncalves, R.; Popplewell, K.; Grilo, A. 2012. Sustainable interoperability: the future of Internet based industrial enterprises, Computers in Industry 63(8): 731–738. http://dx.doi.org/10.1016/j.compind.2012.08.016 DOI: https://doi.org/10.1016/j.compind.2012.08.016
Jennex, M. E. (2006). Knowledge management in modern organizations: Igi Global. DOI: https://doi.org/10.4018/978-1-59904-261-9
Jung, D. I., Bass, B. M., & Sosik, J. J. (1995). Bridging leadership and culture: A theoretical consideration of transformational leadership and collectivistic cultures. Journal of leadership & organizational studies, 2(4), 3-18. DOI: https://doi.org/10.1177/107179199500200402
Jung, D. I., Chow, C., & Wu, A. (2003). The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings. The leadership quarterly, 14(4), 525-544. DOI: https://doi.org/10.1016/S1048-9843(03)00050-X
Lopez-Nicolas, C.; Soto-Acosta, P. 2010. Analyzing ICT adoption and use effects on knowledge creation: an empirical investigation in SMEs, International Journal of Information Management 30(6): 521–528. http://dx.doi.org/10.1016/j.ijinfomgt.2010.03.004 DOI: https://doi.org/10.1016/j.ijinfomgt.2010.03.004
Lynn, B. E. (1999). Culture and intellectual capital management: a key factor in successful ICM implementation. International Journal of Technology Management, 18(5-8), 590-603. DOI: https://doi.org/10.1504/IJTM.1999.002790
Madzar, S. (2005). Subordinates' information inquiry in uncertain times: A cross cultural consideration of leadership style effect. International Journal of Cross Cultural Management, 5(3), 255-274. DOI: https://doi.org/10.1177/1470595805058412
Marins, L. M. (2008). The challenge of measuring innovation in emerging economies' firms: A proposal of a new set of indicators on innovation: United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
Miron, E., Erez, M., & Naveh, E. (2004). Do personal characteristics and cultural values that promote innovation, quality, and efficiency compete or complement each other? Journal of organizational behavior, 25(2), 175-199. DOI: https://doi.org/10.1002/job.237
Nemanich, L. A., & Keller, R. T. (2007). Transformational leadership in an acquisition: A field study of employees. The leadership quarterly, 18(1), 49-68. DOI: https://doi.org/10.1016/j.leaqua.2006.11.003
Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation: Oxford university press. DOI: https://doi.org/10.1016/0024-6301(96)81509-3
Noruzy, A., Dalfard, V. M., Azhdari, B., Nazari-Shirkouhi, S., & Rezazadeh, A. (2013). Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms. The International Journal of Advanced Manufacturing Technology, 64(5-8), 1073-1085. DOI: https://doi.org/10.1007/s00170-012-4038-y
Orabi, T. G. A. (2016). The impact of transformational leadership style on organizational performance: Evidence from Jordan. International Journal of Human Resource Studies, 6(2), 89-102. DOI: https://doi.org/10.5296/ijhrs.v6i2.9427
Paul, A. K., & Anantharaman, R. N. (2003). Impact of people management practices on organizational performance: analysis of a causal model. International journal of human resource management, 14(7), 1246-1266. DOI: https://doi.org/10.1080/0958519032000145648
Pawar, B. S., & Eastman, K. K. (1997). The nature and implications of contextual influences on transformational leadership: A conceptual examination. Academy of Management Review, 22(1), 80-109. DOI: https://doi.org/10.5465/amr.1997.9707180260
Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors. The leadership quarterly, 1(2), 107-142. DOI: https://doi.org/10.1016/1048-9843(90)90009-7
Popper, M., & Lipshitz, R. (2000). Organizational learning mechanisms, culture, and feasibility. Management learning, 31(2), 181-196. DOI: https://doi.org/10.1177/1350507600312003
Raymond, L.; Bergeron, F.; Blili, S. 2005. The Assimilation of e-business in manufacturing SMEs: determinants and effects on growth and internationalization, Electronic Markets 15(2): 106–118. http://dx.doi.org/10.1080/10196780500083761 DOI: https://doi.org/10.1080/10196780500083761
Rai, R. K. (2011). Knowledge management and organizational culture: a theoretical integrative framework. Journal of Knowledge Management, 15(5), 779-801. DOI: https://doi.org/10.1108/13673271111174320
Sackmann, S. A. (2011). Culture and performance. The handbook of organizational culture and climate, 2, 188-224. DOI: https://doi.org/10.4135/9781483307961.n12
Shamir, B., House, R. J., & Arthur, M. B. (1993). The motivational effects of charismatic leadership: A self-concept based theory. Organization science, 4(4), 577-594. DOI: https://doi.org/10.1287/orsc.4.4.577
Škerlavaj, M., Song, J. H., & Lee, Y. (2010). Organizational learning culture, innovative culture and innovations in South Korean firms. Expert systems with applications, 37(9), 6390-6403. DOI: https://doi.org/10.1016/j.eswa.2010.02.080
Walker, R. M. (2004). Innovation and organisational performance: evidence and a research agenda. DOI: https://doi.org/10.2139/ssrn.1306909
Wood, G., Svensson, G., & Syvertsen, C. (2008). What is the future of business schools? European Business Review, 20(2), 142-151. DOI: https://doi.org/10.1108/09555340810858289
Woodman, R. W., Sawyer, J. E., & Griffin, R. W. (1993). Toward a theory of organizational creativity. Academy of Management Review, 18(2), 293-321. DOI: https://doi.org/10.5465/amr.1993.3997517
Yukl, G. (1999). An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. The leadership quarterly, 10(2), 285-305. DOI: https://doi.org/10.1016/S1048-9843(99)00013-2
Copyright (c) 2018 Sadia Arif, Aman Akram
This work is licensed under a Creative Commons Attribution 4.0 International License.