The effect of transformational, transactional and authentic leadership on innovation: the mediating role of organizational culture

Abstract

Purpose This study aims to investigate the effects of different leadership styles, transformational, transactional and authentic leadership, on travel agents’ innovational behavior, with organizational culture as a mediator. Design/methodology/approach The study aim was achieved by using an integrative model using LISREL 8.80. Quantitative research was used using a questionnaire. A convenient sampling technique was used to select the sample. A total of 500 questionnaires were distributed to travel agents, out of which 415 were returned, and 376 usable ones were statistically handled (75.2% response rate). Findings Transformational leadership has a significant impact on organizational culture (ß = 0.34) and innovational behavior (ß = 0.46). Authentic leadership has a significant impact on both organizational culture (ß = 0.38) and innovational behavior (ß = 0.52). Transactional leadership significantly impacts organizational culture (ß = 0.38); however, it has no significant impact on innovational behavior (ß = 0.31). The positive influence of leadership styles on innovative behavior is mediated by innovative organizational culture (ß = 0.92). Research limitations/implications Further research should explore the relationship between other leadership styles and innovation. Additionally, investigates the relationship between organizational culture factors and innovation. This study targeted category “A” travel agencies. Therefore, to generalize the study findings, the study should be replicated with other categories of travel agencies. Practical implications Travel agencies organizations should invest in managers who adopt authentic and transformational leadership, whereas transactional leaders are urged to be open to new ideas, invest in the knowledge and skills of their employees, encourage friendly communication with their employees and ensure that there are reasonable punishment and reward systems within the organization. Originality/value This study presents new insights into tourism field by integrating the study variables (organizational culture, innovative behavior and leadership style), into one framework, particularly in developing countries’ contexts.

Optimizing transformational leadership and knowledge management as keys to innovation

“…Organizational culture can be defined as a collection of fundamental values that are shared by the members of an organization (Zheng et al, 2019). Rashwan and Ghaly (2022) provide a fundamental explanation of organizational culture as the underlying framework of organizations, which is grounded in the values, beliefs, and assumptions upheld by members of the organization. Furthermore, the diverse hues of the keywords in Figure 10 enable us to determine the mean publication year of all publications that encompass these phrases.…”

“…It also inspires and motivates employees to engage in innovative behaviour within an organisation (Alrowwad et al, 2020). Rashwan and Ghaly (2022) found that transformational leadership promotes a secure environment that stimulates innovation among employees. Furthermore transformational leadership refers to a style of leadership characterized by charismatic, visionary, and inspirational behaviors that influence employees to exceed their goals and perform beyond the established expectations in the workplace (Zheng et al, 2019).…”

A Review of the Impact of Leadership Styles on Employee Innovation Performance

“…Zhao (2010) proposed that, when combined with purposeful actions, transactional leadership is likely to evoke positive emotions among employees, thereby driving innovation. Rashwan (2022) defined transactional leadership as a leader-member relationship based on exchanges, where superiors mainly motivate employees through direct rewards or punishments, focusing on employees' organizational contributions. Miao (2020) found that transactional leaders focus on achieving organizational goals, actively identify and correct deviations from standards, excel in emergency management, and emphasize excellence in management.…”

Knowledge management is no more a gray area in the tourism industry in India – a study on transformation leadership and executive communication

“…The acquisition and dissemination of knowledge are crucial elements of businesses, penetrating many of their aspects, such as organizational culture, communication and employees (Adhikari and Shrestha, 2023; Rashwan and Ghaly, 2022). Overall, the strategic components of knowledge management include the processes of knowledge development, capture, sharing and usage.…”