Transformational leadership and organizational innovation: Moderated by organizational size

The present study was aimed to explore the moderating role of organizational size in the relationship between transformational leadership and organizational innovation. The study also examined the impact of transformational leadership on organizational innovation. A purposive sample of 296 managers from the telecommunication sector of Pakistan participated in the study. The age range of managers was from 25 to 60 years with mean age of 42.5, (SD = 11.27) years. Hierarchical regression models demonstrated organizational size significantly moderating the relationship between transformational leadership. The results further revealed that organizational size significantly moderated the relationship between all facets of transformational leadership (Attributed Charisma, Inspirational Motivation, Intellectual Stimulation and Individualized Consideration) and organizational innovation except idealized influence. The results also exhibit positive and significant impact of transformational leadership on organizational innovation.   Key words: Organizational innovation, transformational leadership, organizational size, attributed charisma, inspirational motivation, intellectual stimulation and Individualized consideration, idealized influence.

[1]  M. West.  Sparkling Fountains or Stagnant Ponds: An Integrative Model of Creativity and Innovation Implementation in Work Groups , 2002 .

[2]  David A. Nadler,et al.  Competing By Design , 1997 .

[3]  A. V. D. Ven,et al.  Central problems in the management of innovation , 1986 .

[4]  M. West,et al.  Innovation and creativity at work::Psychological and organizational strategies , 1992 .

[5]  Ming-Jer Chen,et al.  Nonresponse and Delayed Response to Competitive Moves: The Roles of Competitor Dependence and Action Irreversibility , 1992 .

[6]  최재필.  The Motivational Effects of Charismatic Leadership , 2005 .

[7]  B. Bass,et al.  Re‐examining the components of transformational and transactional leadership using the Multifactor Leadership , 1999 .

[8]  Bernard M. Bass,et al.  Long Term Forecasting of Transformational Leadership and Its Effects Among Naval Officers: Some Preliminary Findings , 1990 .

[9]  J. Schumpeter.  The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle , 1934 .

[10]  J. Haar,et al.  IT COMPETENCY PREDICTING MARKET AND DEVELOPMENT PERFORMANCE: MODERATED BY ORGANIZATIONAL SIZE , 2007 .

[11]  F. Scherer,et al.  Industrial Market Structure and Economic Performance. , 1971 .

[12]  R. Belli,et al.  Internal consistency and reliability of a questionnaire assessing organizational innovation in two schools of dentistry. , 2002, Journal of dental education.

[13]  Joseph F. Porac,et al.  Are more resources always better for growth? Resource stickiness in market and product expansion , 2004 .

[14]  Teresa M. Amabile,et al.  How to kill creativity. , 1998, Harvard business review.

[15]  Jeroen P.J. de Jong,et al.  Individual innovation : the connection between leadership and employees’ innovative work behavior , 2007 .

[16]  M. Mumford,et al.  Leading creative people: Orchestrating expertise and relationships , 2002 .

[17]  B. Bass,et al.  Predicting unit performance by assessing transformational and transactional leadership. , 2003, The Journal of applied psychology.

[18]  Lowell W. Busenitz,et al.  Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making , 1997 .

[19]  John M. Longshore.  Leadership and Performance Beyond Expectationsby BassBernard M.. New York: Free Press, 1985, 256 pp., $24.95. , 1987 .

[20]  M. Hannan,et al.  Structural Inertia and Organizational Change , 1984 .

[21]  D. Jung,et al.  The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings , 2003 .

[22]  John J. Sosik.  Self-concept based aspects of the charismatic leader: More than meets the eye , 1998 .

[23]  M. West,et al.  The bright and dark sides of individual and group innovation:a special issue introduction , 2004 .

[24]  Jane M. Howell,et al.  Transformational leadership, transactional leadership, locus of control, and support for innovation: key predictors of consolidated-business-unit performance , 1993 .

[25]  Robert Hogan,et al.  What we know about Leadership , 2005 .

[26]  L. Gumusluoglu,et al.  Transformational Leadership, Creativity, and Organizational Innovation , 2009 .

[27]  J. Ebben,et al.  Efficiency, flexibility, or both? Evidence linking strategy to performance in small firms , 2005 .

[28]  José Esteves,et al.  Analyzing SMEs Size as a Moderator of ERP Impact in SMEs Productivity , 2008, Communications of the IIMA.

[29]  Bruce J. Avolio,et al.  The Charismatic Relationship: A Dramaturgical Perspective , 1998 .

[30]  B. Avolio,et al.  Opening the black box: An experimental investigation of the mediating effects of trust and value congruence on transformational and transactional leadership. , 2000 .

[31]  John J. Sosik,et al.  Transformational Leadership and Dimensions of Creativity: Motivating Idea Generation in Computer-Mediated Groups , 1998 .

[32]  J. Jarillo.  Entrepreneurship and growth: the strategic use of external resources , 1989 .

[33]  G. O'Connor,et al.  Implementing radical innovation in mature firms: The role of hubs , 2001 .

[34]  J. Ettlie,et al.  Organization Strategy and Structural Differences for Radical Versus Incremental Innovation , 1984 .

[35]  R. Duane Ireland,et al.  MERGERS AND ACQUISITIONS AND MANAGERIAL COMMITMENT TO INNOVATION IN M-FORM FIRMS , 1990 .

[36]  Jeroen P.J. de Jong,et al.  Leadership as a determinant of innovative behaviour , 2003 .

[37]  Francesca Pissarides.  Is lack of funds the main obstacle to growth? ebrd's experience with small- and medium-sized businesses in central and eastern europe , 1999 .

[38]  Robert J. House,et al.  Toward the integration of transformational, charismatic, and visionary theories. , 1993 .

[39]  Ricky W. Griffin,et al.  Toward a Theory of Organizational Creativity , 1993 .

[40]  Jing Zhou,et al.  Transformational Leadership, Conservation, and Creativity: Evidence From Korea , 2003 .

[41]  F. Damanpour.  Organizational Size and Innovation , 1992 .

[42]  Jacob Cohen,et al.  Applied multiple regression/correlation analysis for the behavioral sciences , 1979 .

[43]  M. West,et al.  Innovation at work:psychological perspectives , 1989 .

[44]  D. Jung,et al.  Transformational and Transactional Leadership and Their Effects on Creativity in Groups , 2001 .

[45]  B. Bass.  LEADERSHIP AND PERFORMANCE BEYOND EXPECTATIONS , 1985 .

[46]  G. R. Oldham,et al.  Employee Creativity: Personal and Contextual Factors at Work , 1996 .

[47]  M. Mumford,et al.  Creativity syndrome: Integration, application, and innovation. , 1988 .

[48]  S. West,et al.  Multiple Regression: Testing and Interpreting Interactions. , 1994 .

[49]  Nagesh Kumar,et al.  Technology, firm size and export behaviour in developing countries: The case of Indian enterprises , 1994 .

[50]  John J. Sosik,et al.  Effects of leadership style and anonymity on group potency and effectiveness in a group decision support system environment. , 1997 .