Transformational Leadership and Dynamic Capabilities in Businesses: A Review

Abstract

Today, rapidly changing environmental conditions have necessitated the emergence of new and dynamic working groups that can adapt to these new conditions and the emergence of new leadership types that will guide these groups. In this research, it is aimed to examine all aspects of transformational leadership and dynamic capabilities and the effect of fulfilling these concepts on businesses. This research shows the relationship between the transformational leadership and the dynamic capabilities of the organization and explores their direct or indirect effects on the organizational performance. The research draws on recent leadership literature and examines the methods, data, and research resources used in the relationship between the transformational leadership and the dynamic capabilities in the businesses. The data used in this research are the results of studies conducted by various researchers and authors in the last thirty years. The findings of the research have shown that the behaviour of transformational leaders can enhance the dynamic capabilities of employees and encourage innovation. From the findings of the research, it is seen that the characteristics of the transformational leaders inspire the creation of the dynamic capabilities and develop the necessary personal approaches for the dynamic capabilities. In this context, it is expected that the transformational leadership functions of the top manager and the organizational structure will greatly affect the measurement dynamics.