EXPLORING THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP ON INNOVATION AND COMPETITIVE EDGE IN ORGANIZATIONS

Abstract

Transformational leadership is widely recognized as a highly effective approach for navigating complexity and driving change in the contemporary business environment. This study investigates the role of transformational leadership in fostering organizational innovation and achieving competitive advantage. Data were collected from 100 participants, including faculty members, technical staff, and employees from innovation-focused departments within corporate settings. Path analysis was employed to examine the relationships between the variables.

The results indicate that transformational leadership has a significant positive impact on organizational innovation. Leaders who adopt a transformational style inspire and motivate team members to innovate, creating a work environment conducive to creativity and the implementation of new ideas. Furthermore, organizational innovation was found to significantly enhance competitive advantage in highly competitive markets, providing firms with a distinctive edge over rivals.

The analysis also demonstrates that the effect of transformational leadership on competitive advantage is largely mediated by organizational innovation, highlighting that transformational leadership drives competitive success primarily through its influence on fostering innovation.