Abstract

This study aims to examine the influence of transformational leadership on organizational innovation through the mediating effect of organizational learning and knowledge management in Turkish HR consulting companies. Sample is selected from small, medium size and large HR consulting companies located in Istanbul. Structural equation modeling and bootstrapping is used for data analysis. The research findings indicated that transformational leadership did not directly affect organizational innovation; transformational leadership directly affected organizational learning and knowledge management, and organizational learning directly impacted knowledge management. Besides, knowledge management directly affected organizational innovation, yet organizational learning indirectly influenced organizational innovation. Finally, transformational leadership indirectly influenced organizational innovation through the intervening effect of organizational learning and knowledge management. The results indicated that if managers in Turkish HR consulting companies practice a transformational leadership style by taking into account organizational learning and knowledge management, the chance for successful organizational innovation will highly improve.

Highlights

  • The difference between a leader and his follower lies in innovation says Steve Jobs, a legendary leader who changed the way millions of people live and communicate

  • This study aims to examine the influence of transformational leadership on organizational innovation through the mediating effect of organizational learning and knowledge management in Turkish HR consulting companies

  • Considering all of the above stated hypotheses and the proposed research model in (Figure 1), this study aims to find out the significance of the correlations between the four constructs, and investigate the influence of transformational leadership on organizational innovation through the intervening effect of organizational learning and knowledge management

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Summary

Introduction

The difference between a leader and his follower lies in innovation says Steve Jobs, a legendary leader who changed the way millions of people live and communicate. Apple and its products are a great example of innovation, and Steve Jobs is an exceptional transformational leader. Liao, Fei & Liu (2008) claimed that organizational success or failure depends on product and process innovation. All of these have led to the need for organizational innovation (Jung, CSchhoowla&rs Wlikue, 2M00c3D).onough (2000) and Harbone & Johne (2003) wrote that leadership style has been highlighted as one of the most essential individual influences on organizational innovation since leaders can directly decide to introduce new ideas into an organization, set particular goals and hearten innovation initiatives from their followers. Di (2013) stated that transformational leadership is the emerging research topic in innovation which has received a lot of attention by many academicians.

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