Transformational leadership: an antecedent for organizational effectiveness in Indian banks

Abstract

Purpose The purpose of this study is to empirically explore the connection between transformational leadership (TL) and organizational effectiveness (OE). Also, the paper looks at the mediating impact of employee innovative behaviour (EIB) and the moderating effect of knowledge sharing (KS) on the aforementioned association. Design/methodology/approach The respondents included 410 bank employees from North India. The mediating effect of EIB and moderating effect of KS was explored by plug-in for SPSS, PROCESS Macro (Hayes). Findings The investigation demonstrated that there exists a significant relationship between the constructs under examination. Further, it was seen that EIB mediated and KS moderated the connection between TL and OE. Practical implications Looking at the associations among TL, KS, EIB and OE can have significant implications for organizations. The considered framework as proposed can be used to outline organizational practices, to frame organizational policies and to build a pool of innovative employees who will in turn enhance OE. Originality/value The general comprehension of the associations among TL, KS, EIB and OE is insufficient in existing literature. This examination expands on past studies by examining the mediating role of the EIB and moderating role of KS between TL and OE. The present work is one of the rare attempts to investigate this nested association in the Indian context.

The Mediating Role of Psychological Empowerment on the Transformational Leadership-Innovative Work Behaviour relationship: A Study of Indian Banking Sector

“…First, we found a positive association between transformational leadership style and IWB, exhibited by the leader and the employees, respectively ( H 1 ). The study’s findings are consistent with previous studies, which found that transformational leadership style positively impacts employees’ IWB by providing a culture where employees can freely suggest and implement innovative ideas and facilitate overall organisational effectiveness (Jung et al, 2003; Tayal et al, 2021). Innovative organisational behaviour would improve service quality in the banking context and be instrumental in various non-banking services like investment advice (Parameswar & Dhir, 2017).…”

“…The leaders promote a culture where employees are motivated to discuss innovative and new ideas openly. Tayal et al (2021), in their study of the Indian banking sector, found a positive relationship between transformational leadership and employees' IWB. They also established the mediating role of employees' IWB between transformational leadership and organisational effectiveness.…”

Impact of organizational learning culture on organizational effectiveness: a serial mediation analysis with knowledge sharing and employee competencies

“…KS possess a capability to moderate the effectiveness of the organization. OE is the outcome of KS (Tayal et al, 2021). EC, on the other hand, are heavily influenced by KS.…”

Evaluation of the Benefits Generated by Sustainability 4.0: A Study of the Perception of Banking Sector Customers

“…These approaches converge by recognizing the need to improve the customer experience, ensure information transparency, and promote the adoption of innovative technologies in the banking sector [15]. However, customer satisfaction and loyalty in financial institutions are influenced by several factors, such as service quality, product knowledge, and employee skills.…”