Conceptual uncertainty but now diversity and globalization totally

Conceptual
Paper

By

Rimsha
Maqsood             (f2017205008)

 

 

Impact
of Transformational leadership on Organizational Innovation, Mediating role of
Employee Commitment

 

 

Supervised
by:

Respected:  Mr. Umer Ayub Malik

For
the course: Research Methodology

University
of Management and Technology

 

 

Impact of
Transformational leadership on Organizational Innovation, Mediating role of
Employee Commitment

In previous studies discussed organizations
use traditional methods and not a big issue because in environment less
uncertainty but now diversity and globalization totally change the environment
of the organizations and market. In current days organization innovation and
transformational leadership is a hot topic and interest of the most
researchers, because both are helpful in getting competitive advantage (Bass 1990, Bass
and Avolio 1993). So that’s why organization is more
focus in innovations, for facing economical and environment uncertainty.
Innovation in sense of process, idea, method, new product, technology, strategy
all things are part of the organization innovation (Eisenbeiß and Boerner 2010, Michaelis, Stegmaier et al. 2010). Literature suggests transformation
leadership style is a main forecaster of the organization innovation. According
to researcher Transformational leadership style is best fit to face the
uncertainty of the environment. It’s empirically tested in Turkish
pharmaceutical industry, Taiwan information technology industry
transformational leadership is positive and enhances organization innovation
(Michaels et al 2010). In this study employee commitment playing as a mediate
play role in between transformational leadership and organization innovation (Jimenez-Jimenez, Sanz Valle et al. 2008). Literature clearly shows employee
commitment is more important aspect of all the organizations (Garcia-Morales, Matias-Reche et al. 2008).When environment unstable in
organization due to getting less employee commitment, and when less employee
commitment due to less organization innovation McAdam and Keogh, 2004. So in
this research try to fill the black box how transformational leadership covers
the entire situation and the sort out all the problems, related to environment
instability, and globalization.

Transformational
leadership (hereafter, TFL) is a key predictor for organizational innovation
Possible mediators between TFL and innovation have been identified, employee
commitment for getting competitive advantage perceived support for organization
learning, and resource and policies innovation, so what after studied employee
commitment in dynamic or uncertain environment like Pakistan is suitable and
fulfill the needs of the organization related to the innovation (Oke et al.,
2009). (Mumford et al., 2002, Gumusluoglu and Ilsev, 2009; Jung et al., 2008;
Sarros et al., 2008), García-Morales et al., 2012)

This
study adds a new perspective by exploring an important but largely neglected
leverage point for leadership in the pursuit of innovation – previous studies
use social capital and employee commitment in emerging economies, as it relates
to organizational innovation and strategic management. So researcher advised
that study explored in different environment and both companies are included
for research public and private companies using different construct between TFL
and innovation (Lu Chen 2016).

The relationship between TFL and organization innovation has been
explained on the basis of the leadership diffusion theory. According to this
perspective TFL characteristics to transform the behavior of the employees,
align employee objectives and goals to the organization goals. Due to create
positive behavior that behavior of the employees are in form of intellectual
and give new ideas, that ideas are creating organization innovation.Hence, it
can generate sustainable competitive advantage and enhance organizational
effectiveness (Bhattacharya et al. 2005).

The relationship between TFL has been
explained on the base of the diffusion leadership theory view and .according to
this perspective leadership transform and change  implement, Hence, it can generate sustainable
competitive advantage and enhance organizational innovation (Bhattacharya, Gibson et al. 2005).It is worth noting that another source of
competitive advantage for firms comes from organizational innovation. Second
theory is AMO is support the framework.

·        
To study the transformational leadership
and organization innovation

·        
To study the employee commitment and
organization innovation

·        
To study the employee commitment how
much positive role play between transformational leadership and organization
innovation.

What
transformational leadership effect and enhance the organization innovation,
mediation role of employee commitment?

Does
transformational leadership are positive correlated to the organization
innovation?

Is
employee commitment positive association to the TFL and Innovation?

 

.
Literature
Review

Transformational
leadership define different researcher and scholars in different ways,
(stogdill 1974) defined transformational leadership is an individual traits, in
which influence the other’s through behavior, through interaction of pattern,
relationship building, controlling the things, through administrative things,
and at the end influence the other’s through legitimacy (lu chen, wei zheng,
baiyin yang, 2016, chin-chian 2017).And time to time different models and styles
are merged with each other. And in current scenario and phenomena is
transformational leadership style consider best fit style in the dynamic
environment, because in transformational leadership included number of traits,
that’s the reason researcher and scholar are consider and paying attention is
one of the new style is best in dynamic situation, (Rebecca Mitchell 2016,
James stogdill  1974). This style says
that both leaders and followers are working with each other with full
motivation and higher leadership is a transition from in current
transformational leadership is an interest of the researcher, because it’s a
new type of style that suitable for organization innovation in diversity (yun
kyunge bae, 2012). Lale gumusluoglu arzu ilsev 2007. Number studies conducted
in other countries, Turkish, Taiwan, Australian pharmaceutical companies the
result are gerneralizeable and significant, transformational leadership play
positive role play in organization (Lu chen, wi zheng, 2016, naim nusair, raed
ababneh 2012 , yun kyunge bae, 2012).(Bryman, Stephens et al.
1996). 
In this leader communicate, meeting one to one, like coaching,
mentoring, counseling, and treat different buy equitably, and give personal
attention you are important for me and your participation is beneficial for me
(Bass and Avolio, 1990).

Now
in dynamic situation innovation is an important aspect of every organization
for competitiveness and success (McAdam and Keogh 2004). Many theories related to
innovation illustrate innovation process two phases first is initiation and
second is implementation (Zaltman et al., 1973).  The main purpose of this study innovation is
a creation and implementation of ideas for achieving organization goals and objectives
fulfill effectively. According to (Lumpkin and Dess 1996) innovation occur when firms is
agreed and except to the new idea and change organization innovation concept
new product, process method, procedure technology and include generation,
acceptance adoption or implementation (Uzkurt, Kumar et al. 2013).According to the Michaels et al
2010 give opinion the impact of TFL on employees reflecting back in shape of
innovation, empowerment, engagement, confidence, morality, and influence
motivation positively. In (Porterand McLaughlin 2006) conduct a study 76 president and
CEO’s of Spain’s the study concluded if se transformational leadership style
rather than transactional, was more influential leading to the subordinate,
with high motivate for learning and developing skills. One another study
conduct in 408Spanish organizations investigate the relation of
transformational leadership and innovation, so results are positive in sense
of, affects slack knowledge, tacit knowledge, absorptive capacity, learning
skills (Garcia-Morales, Matias-Reche et al.
2008).

H1:
Transformational leadership is positively associated to Innovation.

Categorizations
of employees by managers appear to set in suggestion an exchange relationship
that directly influences managerial treatment of the employees. And research on
person categories has focused mostly on the performance domain. Eden, (1997) (Shore and Wayne 1993) and also focused on the potential
impact of managers’ assessments of employee commitment on thei2.4r treatment of
employees. We studied and investigate on employee commitment to develop
predictions about the effects of managerial perceptions of employee.(O’Reilly and Chatman 1986) examined that how employee’s
psychological attachment to the organization is based on identification,
compliance and internalization. According to (Bragg 2002) employee commitment is dependent
on three drivers’ fairness, trust, and concern for employees. If employers wish
to build commitment, they should create an environment of fairness, trust, care
and concern by acting always in ways that employees recognize as fair, trusting
and caring.

In
the current competitive work environment employment, employees have increase
their more expectations in areas focus pleasant working environment with fair
and good pay back and compensation system that is only possible when a good
leader motivate to the employees, and enhance and working to the inner self,
align employee goal to the organization goals, that time employee committed
with organization, and then organization innovation create(Bass and Riggio 2006). 

H2:
Transformation leadership is positively related to the employee commitment.

The
ability to identify and enhance the commitment due to increase innovation. And
innovation opportunities for employees and organization, adopt new successful
practices from other contexts is a vital skill needed by leaders in a dynamic environment.
Amiable et al., (1996). Studied that Innovation was de?ned as the adoption of
an idea or behavior whether pertaining to a device, system, process, policy,
program, product, or service that is new to the adopting organization and all
about directly and indirectly to the employee commitment.

H3:
Commitment is positive relation to the Organization innovation.

H4:
Employee commitment is positively correlated to the TFL and innovation.

Conceptual
framework

 

 

                                                                               H3   

 

 

 

 

Research
Methodology

In this research design is used
cross-sectional. This study will focus on quantitative and explanatory
research. Explanatory research will help this study as it will help to get
previous insights. It will be based on three basic things; search of the
literature, talking to experts and questionnaire analysis. Quantitative
research will be conducted through questionnaires and surveys from the employees.

Our
research study would be conducted in the following manner; Search for relevant
material on impacts organization innovation. Visit and meet the different
employees and gather information on how transformation leadership is positive
role play in the organization innovation. Develop a questionnaire to be filled
by employees in age vise, gender, and education vise. The questions would be
related to the various factors due to we know the organization innovation. Get
the questionnaires filled by the categories in three different ways. Carry out
an in-depth analysis of the research findings with the help of statistical and
graphical models and then develop the report based on the objectives and
hypothesis.

The
population we aim to target for our study is heterogeneous which would be
different employees of the private limited companies of Pakistan. And target
population of the private and public companies of Lahore Manufacturing
Industries. These individuals would be both male and females. And collecting
the data only those employee was working experience more than one year.

Different
sample method use for targeted sample in research. Famous two types of sampling
technique use; one is ‘probability sampling technique’ and second is ‘non probability
sampling technique’. Our sample size would include a heterogeneous mixture of
260 individuals, Hair et al., (2010). We would be use the
non-probability sampling technique in our research.

Data
collect from Google, Google Scholar and online libraries. Apart from this, we
will be consulting many journals and articles findings, journals from JSTOR,
Journal of Change Management, Harvard Business Review, and Journals of Human
Resource etc.

Our
research will be based on both the male and the female perspective as to how
their transformational leadership impacted by the change and dynamic
environment to the organization innovation.

We
will also develop a questionnaire based on the variables identified during our
research. We then plan to get these questionnaires filled by the employees. The
data collected from the questionnaires will be analyzed with the help of
different software analysis in order to find out the actual reasons behind
organization innovation.

Data from the survey were used for measuring the Organization innovation questionnaire adapted from
Wang and Ahmed, 2004. The Cranach’s alpha value is .81 which is high
significant, total thirty items five-point Likert scale. One for little extent
to, 5 great extents, use this scale to judge the respondent’s behavior what
they perceived about organization Innovation. TFL
questionnaire adopted by, Avolio’s 199716- Items scale, Avolio’s 1997, Six-point
liker scale from one is strongly disagree and five is strongly agree, the
Cronbach’s alpha .71 which is highly significant. Employee commitment
questionnaire developed by Bulut and Culha (2010), five items likert scale, one
is strongly disagree, and five is great extent, Cronbach’s alpha value is 082.For analysis of data generated by
the survey we plan perform descriptive statistics, regression analysis.

To
make this study more accurate Microsoft Excel and SPSS (software) would be used
for result formulation. Research schedule this
study will be completed by undergoing four processes within a time period of
four months. Initial phase will result into literature review and making a
proposal. Second phase will include primary data collection along with surveys,
questionnaire. Third phase will include gathering all the data and giving it
numerical formation and lastly the research will be organized based on the
objectives and hypothesis. This report would also provide various solutions to
increase motivation and work performance.

Discussion and Conclusion

In above
detailed and help of literature transformational leadership is a best style of
all other leadership styles in uncertainty and unpredictability in environment
and play positive role play in organization innovation, so previous studies
relation of the transformational leadership and organization innovation is
positively associated with each other, like both variables are tested in
Australian research and development sector, Turkish tested in pharmaceutical
industry, Taiwan tested in public sector the relation of both transformational
and organization innovation are positive 
between. So that study conducted in different environment like Pakistan
here totally different culture and climate of the organizations, so that study
is very helpful and significance of Pakistan public and private sectors,
because after collecting the data in public and private employee, in help of
SPSS run analysis and after getting the results, comparison of both sectors,
public and private, and see where transformational leadership is play more role
in enhancing the organization innovation. And in independent variable and
dependent variable mediation use employee commitment. Literature explains
organization innovation is more enhance when employee commitment is high in
organization. So we final conclude that time when we analyze things in help of
SPSS, what in Pakistan transformational leadership are enhance organization
innovation through employee commitment. And in future we use employee
creativity as a mediator in transformational leadership and organization
innovation, and investigate the results, how much change the results of
existing research. In concluding remarks we can say that the study are helpful
those organization that want innovation in his organizations.

 

 

 

 

 

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