Effect of Transformational Leadership Style and Knowledge Management on Organizational Innovation through Empowerment, Member Creativity and Learning Organization

Abstract

In building an innovative organizational climate, one important element is transformational leadership. Headmasters, as leaders, must be able to provide motivation to teachers and make them always innovate in providing learning materials to students. The objective of this study is to analyze and determine the effect of transformational leadership style and knowledge management on organizational innovation through empowerment, member creativity and learning organization. This research includes explanatory research to find and limit what is applicable and researchable. Sampling in this study applies a saturated sampling method of 261 teachers from 6 schools. The results of this study include that: 1) transformational leadership (X1) has a significant and positive effect on empowerment (Z1), 2) transformational leadership (X1) has a significant and positive effect on member creativity (Z2), transformational leadership (X1) has a significant effect and positive on learning organization (Z3), 5) transformational leadership (X1) has a significant and positive effect on organizational innovation (Z4), 6) empowerment (Z1) has no significant and positive effect on organizational innovation (Z4), 7) learning organization (Z3) has significant and positive effect on organizational innovation (Z4), 8) knowledge management (X2) has a significant and positive effect on learning organization (Z3), and 9) knowledge management (X2) has a significant and positive effect on organizational innovation (Z4).