EXAMINING THE EFFECT OF TRANSFORMATIONAL LEADERSHIP TO ORGANIZATIONAL PERFORMANCE THROUGH QUALITY INNOVATION: A DEVELOPING COUNTRY PERSPECTIVE

This study aimes to investigate the effect of transformational leadership to organizational performance via the mediating role of quality innovation. Adopting a quantitative research design, data were collected from 222 middle level- leaders using a self-structured questionnaire. Structural equation modeling (SEM) via The Analysis of Moment Structures, i.e., IBM AMOS 22 was used to test the hypotheses. The findings indicated that transformational leadership was significantly associated with both innovation and organizational performance. Furthermore, innovation has a positive effect on organizational performance. Consequently, the results underlined a significant mediation role of innovation in the relationship between transformational leadership and organizational performance. The findings of this study serve as a guide for leaders and policymakers in terms of having better understanding on the relationship between transformational leadership, quality innovation, and organizational performance. Hence, practitioners are able to design a good polices for adopting transformational leadership and innovation to enhance organizational performance. To the best of the authors' knowledge, this paper is the first of its kind to anayise the mediating effect of quality innovation on the relationship between transformational leadership and organizational performance linkage in manufacturing sector in a developing country context. Finally, the results of this study was extracted based on data collected from manufacturing sector, which can not be generalized across a braodr rang of sectors.