ConceptualPaperByRimshaMaqsood (f2017205008) Impactof Transformational leadership on Organizational Innovation, Mediating role ofEmployee Commitment Supervisedby:Respected: Mr. Umer Ayub MalikForthe course: Research MethodologyUniversityof Management and Technology Impact ofTransformational leadership on Organizational Innovation, Mediating role ofEmployee CommitmentIn previous studies discussed organizationsuse traditional methods and not a big issue because in environment lessuncertainty but now diversity and globalization totally change the environmentof the organizations and market. In current days organization innovation andtransformational leadership is a hot topic and interest of the mostresearchers, because both are helpful in getting competitive advantage (Bass 1990, Bassand Avolio 1993). So that’s why organization is morefocus in innovations, for facing economical and environment uncertainty.Innovation in sense of process, idea, method, new product, technology, strategyall things are part of the organization innovation (Eisenbeiß and Boerner 2010, Michaelis, Stegmaier et al. 2010).
Literature suggests transformationleadership style is a main forecaster of the organization innovation. Accordingto researcher Transformational leadership style is best fit to face theuncertainty of the environment. It’s empirically tested in Turkishpharmaceutical industry, Taiwan information technology industrytransformational leadership is positive and enhances organization innovation(Michaels et al 2010). In this study employee commitment playing as a mediateplay role in between transformational leadership and organization innovation (Jimenez-Jimenez, Sanz Valle et al. 2008).
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Literature clearly shows employeecommitment is more important aspect of all the organizations (Garcia-Morales, Matias-Reche et al. 2008).When environment unstable inorganization due to getting less employee commitment, and when less employeecommitment due to less organization innovation McAdam and Keogh, 2004. So inthis research try to fill the black box how transformational leadership coversthe entire situation and the sort out all the problems, related to environmentinstability, and globalization.Transformationalleadership (hereafter, TFL) is a key predictor for organizational innovationPossible mediators between TFL and innovation have been identified, employeecommitment for getting competitive advantage perceived support for organizationlearning, and resource and policies innovation, so what after studied employeecommitment in dynamic or uncertain environment like Pakistan is suitable andfulfill the needs of the organization related to the innovation (Oke et al.
,2009). (Mumford et al., 2002, Gumusluoglu and Ilsev, 2009; Jung et al.
, 2008;Sarros et al., 2008), García-Morales et al., 2012)Thisstudy adds a new perspective by exploring an important but largely neglectedleverage point for leadership in the pursuit of innovation – previous studiesuse social capital and employee commitment in emerging economies, as it relatesto organizational innovation and strategic management. So researcher advisedthat study explored in different environment and both companies are includedfor research public and private companies using different construct between TFLand innovation (Lu Chen 2016).The relationship between TFL and organization innovation has beenexplained on the basis of the leadership diffusion theory. According to thisperspective TFL characteristics to transform the behavior of the employees,align employee objectives and goals to the organization goals. Due to createpositive behavior that behavior of the employees are in form of intellectualand give new ideas, that ideas are creating organization innovation.Hence, itcan generate sustainable competitive advantage and enhance organizationaleffectiveness (Bhattacharya et al.
2005).The relationship between TFL has beenexplained on the base of the diffusion leadership theory view and .according tothis perspective leadership transform and change implement, Hence, it can generate sustainablecompetitive advantage and enhance organizational innovation (Bhattacharya, Gibson et al. 2005).It is worth noting that another source ofcompetitive advantage for firms comes from organizational innovation.
Secondtheory is AMO is support the framework.· To study the transformational leadershipand organization innovation· To study the employee commitment andorganization innovation· To study the employee commitment howmuch positive role play between transformational leadership and organizationinnovation.Whattransformational leadership effect and enhance the organization innovation,mediation role of employee commitment?Doestransformational leadership are positive correlated to the organizationinnovation?Isemployee commitment positive association to the TFL and Innovation? .LiteratureReviewTransformationalleadership define different researcher and scholars in different ways,(stogdill 1974) defined transformational leadership is an individual traits, inwhich influence the other’s through behavior, through interaction of pattern,relationship building, controlling the things, through administrative things,and at the end influence the other’s through legitimacy (lu chen, wei zheng,baiyin yang, 2016, chin-chian 2017).And time to time different models and stylesare merged with each other. And in current scenario and phenomena istransformational leadership style consider best fit style in the dynamicenvironment, because in transformational leadership included number of traits,that’s the reason researcher and scholar are consider and paying attention isone of the new style is best in dynamic situation, (Rebecca Mitchell 2016,James stogdill 1974). This style saysthat both leaders and followers are working with each other with fullmotivation and higher leadership is a transition from in currenttransformational leadership is an interest of the researcher, because it’s anew type of style that suitable for organization innovation in diversity (yunkyunge bae, 2012). Lale gumusluoglu arzu ilsev 2007.
Number studies conductedin other countries, Turkish, Taiwan, Australian pharmaceutical companies theresult are gerneralizeable and significant, transformational leadership playpositive role play in organization (Lu chen, wi zheng, 2016, naim nusair, raedababneh 2012 , yun kyunge bae, 2012).(Bryman, Stephens et al.1996). In this leader communicate, meeting one to one, like coaching,mentoring, counseling, and treat different buy equitably, and give personalattention you are important for me and your participation is beneficial for me(Bass and Avolio, 1990).Nowin dynamic situation innovation is an important aspect of every organizationfor competitiveness and success (McAdam and Keogh 2004).
Many theories related toinnovation illustrate innovation process two phases first is initiation andsecond is implementation (Zaltman et al., 1973). The main purpose of this study innovation isa creation and implementation of ideas for achieving organization goals and objectivesfulfill effectively.
According to (Lumpkin and Dess 1996) innovation occur when firms isagreed and except to the new idea and change organization innovation conceptnew product, process method, procedure technology and include generation,acceptance adoption or implementation (Uzkurt, Kumar et al. 2013).According to the Michaels et al2010 give opinion the impact of TFL on employees reflecting back in shape ofinnovation, empowerment, engagement, confidence, morality, and influencemotivation positively.
In (Porterand McLaughlin 2006) conduct a study 76 president andCEO’s of Spain’s the study concluded if se transformational leadership stylerather than transactional, was more influential leading to the subordinate,with high motivate for learning and developing skills. One another studyconduct in 408Spanish organizations investigate the relation oftransformational leadership and innovation, so results are positive in senseof, affects slack knowledge, tacit knowledge, absorptive capacity, learningskills (Garcia-Morales, Matias-Reche et al.2008).H1:Transformational leadership is positively associated to Innovation.Categorizationsof employees by managers appear to set in suggestion an exchange relationshipthat directly influences managerial treatment of the employees. And research onperson categories has focused mostly on the performance domain.
Eden, (1997) (Shore and Wayne 1993) and also focused on the potentialimpact of managers’ assessments of employee commitment on thei2.4r treatment ofemployees. We studied and investigate on employee commitment to developpredictions about the effects of managerial perceptions of employee.(O’Reilly and Chatman 1986) examined that how employee’spsychological attachment to the organization is based on identification,compliance and internalization. According to (Bragg 2002) employee commitment is dependenton three drivers’ fairness, trust, and concern for employees.
If employers wishto build commitment, they should create an environment of fairness, trust, careand concern by acting always in ways that employees recognize as fair, trustingand caring.Inthe current competitive work environment employment, employees have increasetheir more expectations in areas focus pleasant working environment with fairand good pay back and compensation system that is only possible when a goodleader motivate to the employees, and enhance and working to the inner self,align employee goal to the organization goals, that time employee committedwith organization, and then organization innovation create(Bass and Riggio 2006). H2:Transformation leadership is positively related to the employee commitment.
Theability to identify and enhance the commitment due to increase innovation. Andinnovation opportunities for employees and organization, adopt new successfulpractices from other contexts is a vital skill needed by leaders in a dynamic environment.Amiable et al., (1996). Studied that Innovation was de?ned as the adoption ofan idea or behavior whether pertaining to a device, system, process, policy,program, product, or service that is new to the adopting organization and allabout directly and indirectly to the employee commitment.H3:Commitment is positive relation to the Organization innovation.H4:Employee commitment is positively correlated to the TFL and innovation.
Conceptualframework H3 ResearchMethodologyIn this research design is usedcross-sectional. This study will focus on quantitative and explanatoryresearch. Explanatory research will help this study as it will help to getprevious insights. It will be based on three basic things; search of theliterature, talking to experts and questionnaire analysis. Quantitativeresearch will be conducted through questionnaires and surveys from the employees.Ourresearch study would be conducted in the following manner; Search for relevantmaterial on impacts organization innovation.
Visit and meet the differentemployees and gather information on how transformation leadership is positiverole play in the organization innovation. Develop a questionnaire to be filledby employees in age vise, gender, and education vise. The questions would berelated to the various factors due to we know the organization innovation. Getthe questionnaires filled by the categories in three different ways. Carry outan in-depth analysis of the research findings with the help of statistical andgraphical models and then develop the report based on the objectives andhypothesis.Thepopulation we aim to target for our study is heterogeneous which would bedifferent employees of the private limited companies of Pakistan. And targetpopulation of the private and public companies of Lahore ManufacturingIndustries. These individuals would be both male and females.
And collectingthe data only those employee was working experience more than one year.Differentsample method use for targeted sample in research. Famous two types of samplingtechnique use; one is ‘probability sampling technique’ and second is ‘non probabilitysampling technique’. Our sample size would include a heterogeneous mixture of260 individuals, Hair et al., (2010). We would be use thenon-probability sampling technique in our research.Datacollect from Google, Google Scholar and online libraries.
Apart from this, wewill be consulting many journals and articles findings, journals from JSTOR,Journal of Change Management, Harvard Business Review, and Journals of HumanResource etc. Ourresearch will be based on both the male and the female perspective as to howtheir transformational leadership impacted by the change and dynamicenvironment to the organization innovation. Wewill also develop a questionnaire based on the variables identified during ourresearch. We then plan to get these questionnaires filled by the employees. Thedata collected from the questionnaires will be analyzed with the help ofdifferent software analysis in order to find out the actual reasons behindorganization innovation.
Data from the survey were used for measuring the Organization innovation questionnaire adapted fromWang and Ahmed, 2004. The Cranach’s alpha value is .81 which is highsignificant, total thirty items five-point Likert scale. One for little extentto, 5 great extents, use this scale to judge the respondent’s behavior whatthey perceived about organization Innovation. TFLquestionnaire adopted by, Avolio’s 199716- Items scale, Avolio’s 1997, Six-pointliker scale from one is strongly disagree and five is strongly agree, theCronbach’s alpha .
71 which is highly significant. Employee commitmentquestionnaire developed by Bulut and Culha (2010), five items likert scale, oneis strongly disagree, and five is great extent, Cronbach’s alpha value is 082.For analysis of data generated bythe survey we plan perform descriptive statistics, regression analysis.Tomake this study more accurate Microsoft Excel and SPSS (software) would be usedfor result formulation. Research schedule thisstudy will be completed by undergoing four processes within a time period offour months. Initial phase will result into literature review and making aproposal. Second phase will include primary data collection along with surveys,questionnaire.
Third phase will include gathering all the data and giving itnumerical formation and lastly the research will be organized based on theobjectives and hypothesis. This report would also provide various solutions toincrease motivation and work performance.Discussion and ConclusionIn abovedetailed and help of literature transformational leadership is a best style ofall other leadership styles in uncertainty and unpredictability in environmentand play positive role play in organization innovation, so previous studiesrelation of the transformational leadership and organization innovation ispositively associated with each other, like both variables are tested inAustralian research and development sector, Turkish tested in pharmaceuticalindustry, Taiwan tested in public sector the relation of both transformationaland organization innovation are positive between. So that study conducted in different environment like Pakistanhere totally different culture and climate of the organizations, so that studyis very helpful and significance of Pakistan public and private sectors,because after collecting the data in public and private employee, in help ofSPSS run analysis and after getting the results, comparison of both sectors,public and private, and see where transformational leadership is play more rolein enhancing the organization innovation. And in independent variable anddependent variable mediation use employee commitment. Literature explainsorganization innovation is more enhance when employee commitment is high inorganization. So we final conclude that time when we analyze things in help ofSPSS, what in Pakistan transformational leadership are enhance organizationinnovation through employee commitment.
And in future we use employeecreativity as a mediator in transformational leadership and organizationinnovation, and investigate the results, how much change the results ofexisting research. In concluding remarks we can say that the study are helpfulthose organization that want innovation in his organizations.