The Influence Of Transformational Leadership And Learning Orientation On Firm Innovation

Abstract

Over the past few decades, many researchers have studied the impact of transformational leadership on firm innovation. Their findings have provided evidence to demonstrate both the direct and indirect impacts. This paper also aim to examine this relationship again within the context of Vietnam’s small and medium-sized enterprises (SMEs). To test the research hypothesis, structural equation modeling will be applied in this research. The datas for research testing are collected from 332 managers and key decision-makers from all types of SMEs. The finding shows that transformational leadership positively and indirectly influences firm innovation through learning orientation, employee creativity and creative climate. Furthermore, the finding also confirms that transformational leadership has a positive and significant impact on learning orientation, employee creativity and creative climate. Some managerial implications are proposed to the managers so that they can stimulate transformational leadership and promote firm innovation. Limitations and suggestions for future research are also provided inn this paper.