THE EFFECT OF TRANSFORMATIONAL LEADERSHIP ON ORGANIZATIONAL PERFORMANCE: THE ROLE OF ORGANIZATIONAL INNOVATION, ORGANIZATIONAL LEARNING AND ABSORPTIVE CAPACITY

Abstract

Leadership is an important factor affecting organizational innovation. Many studies show that transformational leadership has a positive and significant influence on organizational performance. Based on a literature review and previous work, this study aims to investigate the influences of transformational leadership on organizational performance through the dynamic capabilities of organizational learning and innovation, the influence of transformational leadership on organizational innovation, and to examine whether organizational learning is a moderator between transformational leadership and organizational performance, and includes the mediating role of absorptive capacity. [1.] Today’s information and knowledge society requires new leaders who can confront a reality based on knowledge and foster innovation to achieve improvements in organizational performance. Our study seeks to fill this research gap by analyzing theoretically and empirically how the leader’s perceptions of different intermediate strategic variables related to organizational performance, organizational innovation, absorptive capacity, and organizational learning) and innovation influence the relationship between transformational leadership and organizational performance. This study is significant in providing experience and developing more knowledge to identify the strengths and weaknesses of public hospitals. [2.] Public hospitals can get some benefits to improve their performance level through innovation and learning for the future. In addition, it can help the organization ensure employee motivation and a friendly policy to increase performance