The influence of transformational leadership on team innovation and team performance

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Date
2010
Authors
Tan, Ai Wah
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Abstract
The globalized, fast-paced world today calls for organizations to adapt the way they conduct their business and to promote change in order to remain competitive. Expectations are high for organizations to continuously innovate and produce even better products and services. An organization’s flexibility in adapting to changes rapidly is one of the core requirements for businesses to gain or maintain their competitive advantage. The present study was undertaken with the aim of studying the relationship between transformational leadership and team performance, and how team innovation mediates that relationship. Based on the results of this study, it was found that transformational leadership, namely the individualized consideration factor, significantly influences team performance in a positive manner. There was also a partially positive and significant relationship between transformational leadership and team innovation. In addition, team performance was predicted by team innovation, namely the vision and support for innovation factors. The mediation test showed that team innovation played a partial mediating role in the relationship between transformational leadership and team performance. All in all, this study provided several implications to existing and aspiring managers and leaders, in organizations aiming to improve their innovative efforts and performance.
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Keywords
Business Administration , Transformational Leadership
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