The Effect of Transformational Leadership Style on Employees’ Innovative Work Behavior with reference to Kifiya Financial Technology

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Date

2022-06

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Addis Ababa University

Abstract

In the current competitive global market, innovative behavior of employees is a key to the survival of organizations. Employees’ innovative work behavior is highly influenced by the type of the leadership style applied. Empirical studies show that there is strong relationship between transformational leadership and employees’ innovative work behavior. This research paper focuses on the effect of transformational leadership on employees’ innovative work behavior in Kifiya Financial Technology. More specifically, the paper analyses the impacts of the four components of transformational leadership on innovative behavior. Data was collected through a standardized questionnaire in census method, comprising of 102 respondents. The findings after statistical regression analysis made on SPSS revealed that among the four components of transformational leadership, idealized influence and inspirational motivation are positively and significantly influence innovative work behavior. While on the other hand, intellectual stimulation and individualized consideration have positive but insignificant relationship with innovative behavior. The results of this study imply that companies can benefit from the application of transformational leadership that brings the culture of innovative work behavior among employees. Finally, there must be more research that need to conduct in similar areas in order to gain adequate knowledge on the impact of transformational leadership on innovative work behavior

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Keywords

Transformational Leadership, Innovative Work behavior, Kifiya Financial Technology

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