Trickle-down effect of CEO transformational leadership on employee’s innovative work behaviors

Abstract

Despite the theoretical foundation that links Transformational leadership (TFL) with innovation behavior, previous studies have overlooked on Transformational leadership and innovation behavior at the individual level relationship but paid less attention to how transformational leadership qualities of top leaders would advance innovative work behavior within the organizational setting. To date, the impact of Transformational leadership at a top executive level on employee’s innovative work behavior (IWB) within an organizational setting has not been dealt with in-depth. However, using transformational leadership theory, this study uncovers the pivotal role of innovation culture (IC) and managerial innovation (MI) in the relationship between CEO transformational leadership and employee’s innovation behavior in SMEs. A cross-sectional design with a total of 434 employees from 24 SMEs operating from Rwanda was analyzed using structural equation modeling to evaluate the relationship between the variables developed in the study. The findings of this study support our hypothesized model.

Transformational leaders’ approach to overcapacity: A study in correctional institutions

“…Transformational leaders influence JP through inspiring and stimulating expectations, and by providing a commitment to organizational goals [ 34 ]. Meanwhile, TL will also suggest outcomes, such as creativity, innovative behavior, product development, and JP [ 35 ]. [ 36 ] explained that leaders tend to improve their company’s JP by providing an understanding of the company’s mission and being role models.…”

Analysis of the Mediation Effect of Organizational Creative Climate on the Relationship of Self-Efficacy to Innovative Work Behavior

“…Innovative behavior at work often arises when an employee faces challenges in his work and receives broad authority in carrying out his duties and responsibilities (Nguyen et al, 2019). Organizations must also realize that a climate that supports individual activities can encourage innovation (Gashema & Mokua, 2019). The final output if employees behave innovatively will, of course, benefit the organization, such as being fast and responsive in serving customers, making positive changes in overcoming problems, having new ideas and new methods of working, all of which lead to increased organizational performance (Hsu et al, 2011).…”

The mediating effect of organizational culture of effectiveness on the relationship between innovative work behavior and transformational leadership. (c2022)

“…A higher capacity for adaptation and innovation is linked to a firm's culture that values innovation more (number of innovations successfully implemented) (Hurley & Hult, 1998). Workers are more likely to engage in creative activities when organizational policies and norms encourage them to take the initiative and explore and develop new ideas, therefore the influence of innovation culture on employees' inventive work behavior would thrive (Gashema & Mokua, 2019). They would even go beyond roles and job descriptions and become the distinguishing factor between effective and ineffective firms (Esmi, Piran, & Hayat, The mediating effect of organizational culture on the relationship between transformational leadership and organizational citizenship behavior, 2017).…”

“…Innovative work behavior is an important asset for organizational success and effectiveness (Liu, Wang, & Chen, 2019). It is described as the engine that runs organizational innovativeness (Gashema & Mokua, 2019). The lack of innovation can ultimately lead to a business failure (Baety & Rojuaniah, 2022).…”