The Transformational Leader's Role in Fostering Organizational Innovation: A Multi-Level Study

Abstract

                        Transformational leadership, characterized by its ability to inspire and motivate employees, has been recognized as a key factor in fostering organizational innovation. This multi-level study investigates the relationship between transformational leadership and organizational innovation, examining the mediating role of psychological empowerment and the moderating role of organizational learning climate. Data were collected from 250 employees and 50 managers in a multinational company. The results showed that transformational leadership positively influenced organizational innovation, and this relationship was mediated by psychological empowerment. Additionally, organizational learning climate moderated the relationship between transformational leadership and psychological empowerment, suggesting that a supportive learning environment enhances the positive effects of transformational leadership on employee empowerment. These findings underscore the importance of transformational leadership in promoting innovation through empowering employees and fostering a supportive learning climate.