INFLUENCE OF TRANSFORMATIONAL LEADERSHIP ON INNOVATION IN ORGANIZATIONS
INFLUENCE OF TRANSFORMATIONAL LEADERSHIP ON INNOVATION IN ORGANIZATIONS

Summary/Abstract: The current business environment is overwhelmed by the progress of technology, the increasing and dynamic expectations of customers and the competitive landscape. Continuous innovation has become necessary an imperative for the majority of companies regardless of their sector of activity. Leadership is an important factor that influences the attitudes and behaviors of subordinates with respect to organizational goals. Leadership creates visions, supports to build relationships and increases the interest of subordinates. However, transformational leadership involves the creative and innovative aspects of employees and organizations. Transformational leadership provides self-confidence to subordinates, increases intrinsic motivation, inspiration, and supports innovation, personal development, and social relationships among employees. The influence of leadership on innovation within organizations is an extremely important subject, a feature which will remain relevant in the future of the company. Therefore, the question of the research is: Can a complex causal relationship be established between the influence of leadership on innovation? The purpose of the research is to create a model that highlights the precise transformational leadership components which influence innovation at the individual and organizational level.

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