Role of Transformational Leadership and its Components on Organizational Innovation through Employee Engagement: Evidence from Pakistan

Abstract

In spite of all the resources and a growing talent pool, the level of organizational innovative culture remains low in Pakistani organizations. Thus, there arises the need to identify the factors that can enhance innovative practices in Pakistan. Therefore, the purpose of this study is to investigate the key role of transformational leadership in Pakistani organizations together with employee engagement on Pakistani organizations innovative performance. To investigate this phenomenon of interest 400 valid responses, purposively collected, were analyzed via simple regression and PROCESS macro. The results indicate that a positive and significant relationships exist between all of the study variables except one. The results also show that the direct effect of transformational (TL) leadership on organizational innovation (OI) is not significant in the presence of employee engagement (EE) as a mediator, indicating that engaged employees are more likely to contribute in the organizational innovation practices. The current study provides important implications for the organizational leaders and strategy makers, the limitations of study and proposes recommendation for future research.