Effect of Transformational Leadership and its Components on Organizational Innovation

Abstract

This study tries to expand the understanding of the relationship between transformational leadership and organizational innovation at the organizational level. This research proposes a conceptual framework to explain the components of transformational leadership while focusing on the relationship between each component and organizational innovation. A sample of 219 managers from 63 companies in the top 100 Iranian companies participated in this research. The results of this study support the expected positive relationship between transformational leadership and organizational innovation. Further findings revealed that among five components of transformational leadership (i.e., idealized influence, attributive charisma, inspirational motivation, intellectual stimulation, and individualized consideration) not all but some of the components (including attributive charisma, inspirational motivation, and intellectual stimulation) are positively related to organizational innovation.