TRANSFORMATIONAL LEADERSHIP PROMOTES INNOVATION

Abstract

The present study focuses on the impact of transformational leadership on innovation and creativity in an organization with the moderating role of environmental dynamism and the mediating role of employee creativity. The study is conducted qualitatively through a systematic literature review of the research conducted by previous researchers in this area. Results indicated that transformational leadership is a significant predictor of promoting innovation and creativity in an organization. Transformational leadership was found to be positively related to innovation. Similarly, the mediating role of employee creativity and the moderating role of environmental dynamism was also established. Employee creativity strengthens the relationship between transformational leadership and innovation. The moderating role of environmental dynamism also contributed positively to the effectiveness of transformational leadership and the promotion of innovation in an organization.