The impact of transformational leadership style on employee creativity and organizational innovation - A case of telecommunications enterprises in the HCMC

Abstract

Employee creativity and organizational innovation are factors that receive special attention in the context of implementing the industrial revolution 4.0, especially for industries with high scientific technological development such as the telecommunications industry. This study was conducted to explore the components of transformational leadership styles that affect employee creativity and organizational innovation. Employees in telecommunications service enterprises in Ho Chi Minh City are the subject of the research. There were 275 valid questionnaires processed. SPSS and AMOS softwares, were used for the analysis of data. Cronbach's alpha analysis, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). were performed. Research results prove that transformational leadership has a positive and direct influence on employee creativity and organizational innovation. At the same time, employee creativity also has a positive and direct impact on organizational innovation. Besides, the study also confirms that transformational leadership is a multidimensional concept made up of 4 components: Ideal influence; Inspirational motivation; Intellectual stimulation & Individualized consideration. Finally, the study provides useful implications for managers of telecommunications service businesses in applying transformational leadership styles to enhance organizational innovation.