Review as many literature reviews as you can (minimum of two), especially the ones that relate to your own topic. As you review these summaries, make note of any sources you wish to examine on your own. Respond to the peer above and below you on the discussion thread list to give feedback on the ideas they share, relating them to your own topic and literature review.
Literature review for Sunitha
Introduction
The review of literature on identifying the relationship between transformational leadership and employee’s innovative work behavior revealed approximately 3000 articles from different disciplines. The success of any organization is depending upon the organization’s ability to create innovations, and just not following the same old structure and process. Employees own innovations work better than the innovations trickled down from the management. Several research studies have been conducted on the role of leadership in employee’s motivation to innovate (Bilal, Badir, & Saed, 2014). Several studies indicate that there is a positive relationship between transformational leadership and knowledge sharing and innovative behavior (Choi, Kim, Ullah, & Kang, 2016). The role of leaders to motivate employees to innovate in their work environment has been getting increased attention globally (Bilal, Badir, & Bilal, 2014). In the following paragraphs I critically evaluated some of the research studies on transformational leadership and innovations.
Transformational Leadership
The term transformational leadership (TL) was introduced by Burns in his research study on politicians in 1978. According to Burns (1978) transformational leaders increases the morale and motivation of employees and eventually groom them to be leaders. Bass did extensive work on Burn’s idea on TL and he identified four dimensions of TL (as cited in Bilal, Badir, & Bilal, 2014). Idealized influence, the leader act as a role model to inspire and influence followers. Intellectual stimulation by challenging the employees to take risks. Individualized consideration is treating employees as individuals and helping them to grow based on individual strengths. Inspirational motivation is motivating workers to achieve the common goal of the unit. These four dimensions of TL were under study in most of the researches.
Uusi-Kakkauri, Brandt, and Kultalahti (2016) strongly infer that leadership has a significant influence on innovativeness. Their study results indicated that intellectual stimulation and inspirational motivation are the two dimensions of transformational leadership affects innovation specially on young innovators. The third dimension which has a significant influence on innovation is the individual consideration of employees by leaders as absence of control freed their minds and allows to innovate. Idealized influence was not a significant factor in innovation in their study. On the other hand, Aryee, Walumbwa, and Zhou (2012) has posited that transformational leader actively coach and mentor his followers rather than controlling them which supported the idealized influence dimension of TL. The researchers presented the view that under transformational leadership employees will be engaged, creative and work hard to achieve the desired outcomes because of the constant feed back and encouragement they receive from the leader. The employees who are engaged and motivated view obstacles as opportunities and invest themselves in wok.
Bilal, Badir, and Bilal (2014) presented a major view on individualized consideration dimension of TL. They did their study on followers and leaders in five most innovative companies of china and identified that individualized consideration of employees by the leaders is the most successful factor in innovation. Transformational leaders consider individual employees needs and expectations, provide them the resources, information and communicate effectively which in turn increases employee’s confidence to explore new opportunities to resolve organizational and departmental issues and challenges (Bilal, Badir, & Bilal 2014). The leader helps the employees to face the possible consequences of innovations (Bilal, Badir, & Bilal, 2014). This concept has been supported by the study conducted by Sattayaraksa and Boon-itt (2016) on the relationship between transformational leadership style and new product development process among Chief Executive Officers (CEO) of manufacturing companies in Thailand. Their study identified that the CEO’s transformational leadership influenced the workers learning and innovations. This influence is achieved through open communication, risk taking, and exploring new opportunities. Wang and Rode (2010) did a study in 55 organizations through out United States on the influence of organizational context, innovative climate and transformational leadership on innovation and found out that there is no strong positive relationship between transformational leadership and innovation in the absence of innovative climate. Organizational innovative climate plays a huge role in innovation in addition to leadership (Wang & Rode, 2010).
Innovative Work Behavior
Innovation is the intentional creation, and implementation of new ideas in an organization (Bilal, Badir, & Bilal 2014). Aryee, Walumbwa, and Zhou (2012) presented the view that employees who are engaged in their work exhibits high enthusiasm, vigor, inspiration and resilience and willing to try new ideas and change their practice. Choi, Kim, Ullah, and Kang (2016) also had the same argument that innovative work behavior (IWB) is strongly connected to employees work engagement and the work engagement is strongly influenced by the leader. Several research studies supported the relationship between knowledge management (KM) and TL and IWB. Choi, Kim, Ullah, and Kang, (2015) identified this relationship between KM, TL and IWB in their research study among Korean workers and KM was identified as a mediate the relationship between TL and IWB. The research study results of Choi et al. (2015) revealed that TL facilitates the knowledge sharing between the employees and which in turn results in innovative ideas and actions. TL helps the employees to think outside the box, explore the external world outside to their work environment and adopt best practices or modify practices to suit their work situation (Choi et al. 2015). Employees show innovativeness in their work as they feel empowered, engaged, individualized, motivated, respected and autonomous while working with their leader (Bilal, Badir, & Bilal (2014). The researchers also strongly suggest that for innovation the employees need support from their coworkers, needs to socialize it, in addition to the strong support from leadership to make it an integral part of the organization. Innovative idea generation is found to be easier than actually implementing the innovations.
Theories of Leadership
The commonly used theoretical concept to explain transformational leadership in the literature were self-concept theory, Social exchange theory and transformational leadership theory. Aryee, Walumbwa, and Zhou (2012) proposed self-concept theory for transformational leadership and social exchange theory to connect the relationship between transformational relationship and innovative work behavior of employees. Self-concept theory describes that the success of the transformational leader is depending on how efficient he is in connecting the self-concept of the employees to the mission of the leader. Through this theory the researchers also suggest that the transformational leader will be able to influence the employees only when has an understanding of his own self first. When the leader transforms the self-concept of employees which creates a positive psychological state which in turn creates increased work engagement and increased innovations. The employees value the leaders of consideration of their individuality which creates an environment conducive to innovations (Choi, Kim, Ullah, & Kang, 2016). Bilal, Badir,and Bilal (2014) argues that understanding the self-concepts and motivational factors of the workers are important in planning guidelines and action plans to achieve their individual goals. Employee’s self-concept value their personal success. Aryee, Walumbwa, and Zhou (2012) also proposed social exchange theory which centered on the social relationship between leader and employees and its influence on the workers engagement and innovative work behavior. The participatory style in decision making used by the leader will encourage exchange of knowledge between the leader and followers as they have a strong working relationship (Choi, Kim, Ullah, & Kang, 2016).
Conclusion
The extensive literature review on transformation leadership revealed that there is a strong correlation between transformation leadership and innovative work behavior. TF has several positive outcomes at individual and organizational level. Transformation leadership is accepted as one of the successful leadership styles in the modern era.
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