Transformational Leadership

Abstract

This paper will provide a critical synthesis of how transformational leadership can potentially lead to product innovation within a corporate structure. The prerequisite conditions that the leadership requires such as knowledge based, resource allocation the organizational climate which promotes and harvests a creative approach to employee innovation will be examined. The theories of transformational leadership will be introduced and compared. In particular, Theory of Transformational-Transactional Leadership model will be thoroughly examined and its impact upon new developments of new product development will be demonstrated.

Research done (Gumusluoglu and Ilsev, 2009) on transformational leadership does provide empirical evidence that there is indeed a strong link between good leaders and product innovation. However, leadership attributes may not be sufficient to fully implement an innovative organization unless the determinants and the moderator with the corporation are mature. In a study done by Woodman, R.W., Sawyer, J.E., and Griffin, R.W. (1993), adequate resources, such as RD funding and skilled employees will need to be present for the transformational leader to fully implement an innovative organization.

Introduction

Innovation is defined as the successful implementation of creative ideas within an organization (Amabile, 1983, 1998; Amabile et al., 1996). Leadership within an organization is believed to have the most important factor affecting sustainable innovation. Sustainable innovation cannot be achieved by mechanically imitating best practices. The catalyzing agent for renewable innovation is cultivated ground from which best practices spring- the confluence of purpose, people and process (Ditkoff, 2008). Here, leadership plays a big role as this process requires inspiring and re-inspiring employees which can be done through celebrating success by providing incentives for sustaining good ideas. Also, the leaders in an organization...