The impact of transformational leadership on employee creativity: the role of learning orientation
| Pages | 78-98 |
| Published date | 05 January 2015 |
| Date | 05 January 2015 |
| DOI | https://doi.org/10.1108/JABS-03-2014-0022 |
| Author | Jeevan Jyoti,Manisha Dev |
| Subject Matter | Strategy,International business |
The impact of transformational leadership
on employee creativity: the role of
learning orientation
Jeevan Jyoti and Manisha Dev
Jeevan Jyoti is an
Assistant Professor and
Manisha Dev is a Scholar
both based at the
Department of
Commerce, University of
Jammu, Jammu, India.
Abstract
Purpose –This research aims to explore the relationship between transformational leadership and
employee creativity. In addition, we intend to study the moderating role played by learning orientation in
the relationship between transformational leadership and employee creativity.
Design/methodology/approach –Data have been collected from employees working at the Airtel and
Aircel call centers of J&K (India). A two-step approach to structural equation modeling (SEM) was
applied. Confirmatory factor analysis was conducted to assess the proposed measurement model fit
and construct validity. The structural model was generated to test the significance of the theoretical
relationships.
Findings –The results revealed that there is a positive relationship between transformational
leadership and employee creativity, and it is being moderated by learning orientation.
Research limitations/implications –Although this study expands our knowledge about the role of
learning orientation between transformational leadership and employee creativity, the prospects for
further research are still present. The cross-sectional design of study might not have been able to
extract the true essence of the cause-and-effect relationship between transformational leadership and
employee creativity.
Practical implications –Transformational leaders promote followers’ creativity, so the management
may find it valuable to invest in transformational leadership training for supervisors and team leaders, or
use personality testing to screen for high-caliber candidates, who have high potential of becoming a
transformational leader. The characteristics of a transformational leader, when coupled with the learning
orientation of employees, yield positive results in the form of employee creativity, which managers can
use to generate sustainable competitive advantages for their organizations.
Originality/value –This paper is original, as it contributes to existing theory by establishing the moderating
role played by learning orientation in between transformational leadership and employee creativity. The
moderation has been proved via SEM with the help of latent constructs, which is seldom done.
Keywords Transformational leadership, Employee creativity, Idealized influence,
Inspirational motivation, Learning orientation, Structural equation modeling
Paper type Research paper
Introduction
Today, we are living in an era when change has become constant. For running an
organization smoothly, effectively and efficiently, the most valuable and indispensable
resources organizations have are their human resources (Mosadeghrad, 2003). The
success of an organization depends on hard-working, loyal and involved managers and
employees. The management of employees is largely dependent on the quality of
leadership (Bushra et al., 2011). Leaders are concerned to create a willingness in the minds
of the led to perform the specific objectives of their organizations, which requires a balance
between the objectives of the organization and the needs of its people (Jung et al., 2010).
Leadership creates the bond which facilitates working together for people (Shibru and
Darshan, 2011), and organizations at present, are more concerned about understanding,
developing and improving their leaders’ potentials (Bushra et al., 2011). Transformational
leadership is a modern approach that looks at where the organization should be heading,
Received 14 March 2014
Revised 13 May 2014
22 July 2014
Accepted 7 August 2014
PAGE 78 JOURNAL OF ASIA BUSINESS STUDIES VOL. 9 NO. 1, 2015, pp. 78-98, © Emerald Group Publishing Limited, ISSN 1558-7894 DOI 10.1108/JABS-03-2014-0022
and it determines how to handle the internal and external changes that employees need to
make to reach corporate goals (Tichy and Devanna, 1986).
In the global market, the environment is dynamic, and many organizations have shifted the
paradigms of their leadership from a transactional to a transformational style to fulfil their
strategies and achieve their goals (Howell and Avolio, 1993;Bass, 1999;Judge and
Piccolo, 2004;Barling et al., 2010). Transformational leaders are knowledgeable, dynamic
and proactive and capable of leading themselves and their subordinates to embrace
changes, exerting extra efforts to meet the ever-increasing demands of competition
(Ahangar, 2009, p. 360). Leaders with transformational mindsets tend to take their followers
beyond their own self-interests for the benefits of their groups, organizations or societies
(Ergeneli et al., 2007). They can change teams or organizations by creating,
communicating and modeling a vision and inspiring employees to achieve the intended
vision (Mcshane and Glinow, 2003, p.429). It is a main driver of employee creativity and
influences business outcomes greatly, such as efficiency, effectiveness, performance,
success, survival and sustainability.
The existing literature has focused on the relationships between transformational leadership
and employee creativity (Jung et al., 2003;Jung, 2001;Sosik et al., 1998;Shin and Zhou, 2003;
Mumford et al., 2002). The idea for this research has been generated by previous findings that
transformational leadership affects creativity both directly and indirectly. In the present paper,
we propose to investigate the relationship between transformational leadership, employee
creativity and learning orientation. This article is an attempt to find out what role learning
orientation plays between transformational leadership and employee creativity, and it has been
investigated by using structural equation modeling (SEM).
Conceptual analysis
Transformational leadership
Transformational leadership has been a popular concept in management literature
because of its motivational and relational style (Gardner et al., 1998;Howell et al., 1993).
Bums (1978) conceived of the notion of transformational leadership. He distinguished
between characteristics of transformational and transactional leadership. Transformational
leaders motivate employees to work for longer hours and produce more than is expected
of them (Bass, 1985). They treat their followers in a paternalistic fashion, guide them in all
situations, help them whenever required, deliver knowledge to them, polish their skills and
treat them equally (Bass, 1985;Hall et al., 2008). It is a form of leadership in which
relationships are organized around a collective purpose in ways that transform, motivate
and enhance the actions and ethical aspirations of followers (Burns, 1978). According to
Bass (1994),Bass and Avolio (1994), and Hartog et al. (1997), transformational leaders are
those who want to develop their followers’ full potentials, higher needs, good value
systems, moralities and motivations. This development motivates the followers to unite,
change goals and beliefs (Bass, 1999, 1994; Bycio et al., 1995;Rafferty and Griffin, 2004),
and look forward beyond their self-interests to achieve organizational interests. This style
suits dynamic organizational environments (Bartram and Casimir, 2007;Hartog et al., 1997;
Pillai et al., 1999;Twigg et al., 2008). Bass and Avolio (1995) advanced the work of Burns
and divided transformational leadership into four components:
1. Inspirational motivation:Hartog et al. (1997) defined inspiration as the capacity of a
leader to act as a model for subordinates. Inspirational motivation refers to the ways
leaders take to inspire their followers to achieve both personal and organizational
goals. Inspirational leadership is about communicating a vision with fluency,
confidence, optimism and enthusiasm and giving motivational examples that energize
others (Yammarino and Dubnisky, 1994, p. 791).
2. Idealized influence: This component refers to the charismatic actions of the leader that
focus on values, beliefs and a sense of mission (Antonakis et al., 2003). These
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