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Transformational Leadership and Innovation: An Empirical Study of Direct and Indirect Effects in HR Consulting Companies

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  • Esin Akay
  • Ayse Demirel

Abstract

This study aims to examine the influence of transformational leadership on organizational innovation through the mediating effect of organizational learning and knowledge management in Turkish HR consulting companies. Sample is selected from small, medium size and large HR consulting companies located in Istanbul. Structural equation modeling and bootstrapping is used for data analysis. The research findings indicated that transformational leadership did not directly affect organizational innovation; transformational leadership directly affected organizational learning and knowledge management, and organizational learning directly impacted knowledge management. Besides, knowledge management directly affected organizational innovation, yet organizational learning indirectly influenced organizational innovation. Finally, transformational leadership indirectly influenced organizational innovation through the intervening effect of organizational learning and knowledge management. The results indicated that if managers in Turkish HR consulting companies practice a transformational leadership style by taking into account organizational learning and knowledge management, the chance for successful organizational innovation will highly improve.

Suggested Citation

  • Esin Akay & Ayse Demirel, 2017. "Transformational Leadership and Innovation: An Empirical Study of Direct and Indirect Effects in HR Consulting Companies," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(1), pages 131-131, December.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2017:i:1:p:131
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    References listed on IDEAS

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    1. Tobias Kollmann & Christoph Stöckmann & Patrick Krell & Anika Peschl & Sarah Buchwald, 2013. "Integrating Dependency on the Leader and Empowerment into Transformational Leadership - Creative Performance Relationship," Central European Business Review, Prague University of Economics and Business, vol. 2013(1), pages 7-14.
    2. Antonio L. Leal-Rodríguez & José L. Roldán & Antonio G. Leal & Jaime Ortega-Gutiérrez, 2013. "Knowledge management, relational learning, and the effectiveness of innovation outcomes," The Service Industries Journal, Taylor & Francis Journals, vol. 33(13-14), pages 1294-1311, October.
    3. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    4. Hugo Zagoršek & Vlado Dimovski & Miha Škerlavaj, 2009. "Transactional and transformational leadership impacts on organizational learning," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 14(2), pages 145-165.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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