Abstract
This study aims to examine the relationship between Transformational leadership and Organizational Innovation. This relationship is mediated through an intervening variable like Employee Creativity. Using the sample of 250 including supervisors and their respective subordinates of Telecommunication industry of Pakistan. This is purely quantitative research and a survey was designed to collect data from supervisors and subordinates to reduce the common method biasness. This study supports the “Transformational theory, LMX theory and Social learning theory” Data was analyzed by using SPSS and AMOS. The results of this study confirms the results of previous studies showing the significant relationship of Transformational leadership style, Employee Creativity and Organizational Innovation with each other, but in previous studies no indication was found about the cause of organizational Innovation through Employee creativity in Telecommunication sector of Pakistan. So the findings of current study have explicit practical considerations for leadership practice, particularly in the situation where both followers and leaders interact with each other.
Highlights
Success of an organization depends upon its ability to create innovative ideas, new information and innovations because many researchers proved that knowledge is an important and valuable resource of an organization as it embodies creative processes, intangible assets and routines that can’t be imitated (Birasnav et al, 2011)
Results predicted that Employee Creativity mediates the relationship of Transformational Leadership with Organizational Innovation
It was found that Transformational Leadership (B = 0.67; p = 0.000) was positively associated with mediating variable i.e., Employee Creativity
Summary
Success of an organization depends upon its ability to create innovative ideas, new information and innovations because many researchers proved that knowledge is an important and valuable resource of an organization as it embodies creative processes, intangible assets and routines that can’t be imitated (Birasnav et al, 2011). An emerging concept about creativity is that it’s required in R and D units but in every day jobs as well, if company wants to be competitive in this dynamic environment (Tierney and Graen, 2008; Shalley and Gilson, 2004). These days creativity is an important part of an organization, because changes occur so rapidly that managers and organizations have no choice but to find new and innovative ways so that they could acclimate with global changes . A day’s employee creativity and organizational innovation is considered as a competitive arena for products developing organizations and employees are expected to be creative and innovative in addition to their needed education (Kudrowitz, 2010)
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