TRANSFORMATIONAL LEADERSHIP AND ITS INFLUENCE ON EMPLOYEE INNOVATION IN TECH COMPANIES
DOI:
10.54443/morfai.v5i6.4481Published:
2025-11-24Downloads
Abstract
In the hyper-competitive technology sector, innovation is a imperative for survival, yet many companies struggle to cultivate it. This study investigates the critical role of transformational leadership as a catalyst for employee-driven innovation. Through an empirical analysis of tech professionals, the research demonstrates that transformational leadership significantly predicts innovative work behavior. The findings reveal a nuanced mechanism: the leadership components exert distinct, stage-specific influences. Intellectual Stimulation is the primary driver of idea generation, while Inspirational Motivation and Individualized Consideration fuel idea promotion and realization by fostering intrinsic motivation and psychological safety. This study provides a validated "Leadership-Innovation Nexus" model, confirming that leadership behaviors directly create the psychological environment essential for innovation. The results offer a clear blueprint for tech companies, highlighting that developing transformational leaders is not a soft skill but a strategic necessity to systematically unlock innovative potential and secure a competitive advantage.
Keywords:
Transformational Leadership, Employee Innovation, Technology Sector, Psychological SafetyReferences
Alshehri, A. A. M. (2024). .Theoretical Foundations of Transformational Leadership in Modern Organizations. التجارة والتمويل, 44(2), 60–69. https://doi.org/10.21608/caf.2024.371225
Ballor, J. J., & Claar, V. V. (2019). Creativity, innovation, and the historicity of entrepreneurship. Journal of Entrepreneurship and Public Policy, 8(4), 513–522. https://doi.org/10.1108/JEPP-03-2019-0016
Chittaranjan Routray. (2025). Innovation Management: Nurturing Creativity and Driving Growth in Technology Firms. Journal of Information Systems Engineering and Management, 10(2), 335–346. https://doi.org/10.52783/jisem.v10i2.1915
Dodgson, M. (2021). The Strategic Management of Technology and Innovation. In Oxford Research Encyclopedia of Business and Management. Oxford University Press. https://doi.org/10.1093/acrefore/9780190224851.013.145
Fika Rahmanita, Ade Irma Anggraeni, & Ratno Purnomo. (2024). A Systematic Review of Work Design: Impact on Employee Performance, Job Satisfaction, and Organizational Outcomes. International Journal of Business and Quality Research, 2(04), 57–69. https://doi.org/10.63922/ijbqr.v2i04.1020
Grošelj, M., Černe, M., Penger, S., & Grah, B. (2021). Authentic and transformational leadership and innovative work behaviour: the moderating role of psychological empowerment. European Journal of Innovation Management, 24(3), 677–706. https://doi.org/10.1108/EJIM-10-2019-0294
Holt, H. L. (2018). Chapter 8 A Practitioner Review of Technological Firms’ Success in Corporate Innovation (pp. 163–181). https://doi.org/10.1108/S1048-473620180000028008
Kidney, R. (2015). Transformational/Transactional Leadership. In Wiley Encyclopedia of Management (pp. 1–4). Wiley. https://doi.org/10.1002/9781118785317.weom110082
KOVTUNENKO, Y., & LOZAN, A. (2024). Digitalization for ensuring innovative development of the enterprise. Economics. Finances. Law, 9/2024, 17–20. https://doi.org/10.37634/efp.2024.9.4
Lenart-Gansiniec, R. (2019). Innovation management within the organisation. In The Routledge Companion to Innovation Management (pp. 363–376). Routledge. https://doi.org/10.4324/9781315276670-18
Mihaela, T. (2021, February 19). The Impact of Leadership on Innovation in Organizations. Proceedings of The 2nd International Conference on Research in Management. https://doi.org/10.33422/2nd.icrmanagement.2021.02.44
Rasesh Totlani. (2023). How automotive firms can better adapt to the shift to electric vehicles. Innovative Research Thoughts, 9(5), 42–54. https://doi.org/10.36676/irt.2023-v9i5-005
SETHIBE, T., & STEYN, R. (2017). THE IMPACT OF LEADERSHIP STYLES AND THE COMPONENTS OF LEADERSHIP STYLES ON INNOVATIVE BEHAVIOUR. International Journal of Innovation Management, 21(02), 1750015. https://doi.org/10.1142/S1363919617500153
Veselica Celić, R. (2025). INNOVATION STRATEGIES AND ORGANIZATIONAL COMPETITIVENESS. DIEM: Dubrovnik International Economic Meeting, 10(1), 109–118. https://doi.org/10.17818/DIEM/2025/1.10
Weseler, D., & Niessen, C. (2016). How job crafting relates to task performance. Journal of Managerial Psychology, 31(3), 672–685. https://doi.org/10.1108/JMP-09-2014-0269
Westover, J. (2024). The Innovative Organization: Fostering a Culture of Continuous Learning and Experimentation. Human Capital Leadership Review, 15(3). https://doi.org/10.70175/hclreview.2020.15.3.12
Yasmin Mirzani. (2024). ARTIFICIAL INTELLIGENCE AND INNOVATION MANAGEMENT: TRANSFORMATIVE FORCES SHAPING ORGANIZATIONAL CREATIVITY. EPRA International Journal of Multidisciplinary Research (IJMR), 511–518. https://doi.org/10.36713/epra16272
Zhu, D. H., Zhao, Z., & Semadeni, M. (2025). How and Why Top Executives Influence Innovation: A Review of Mechanisms and a Research Agenda. Journal of Management, 51(6), 2320–2354. https://doi.org/10.1177/01492063241284962
License
Copyright (c) 2025 Paspa Granita, Oktavianti, Rizki Eka Putra

This work is licensed under a Creative Commons Attribution 4.0 International License.




