The Influence Of Transformational Leadership On Organizational Innovation: Mediated By Employee Creativity

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Samsuddin Rahim , Buyung Sarita , Samdin , Sriwiyati Mahrani

Abstract

This study aims to: 1) examine the influence of transformational leadership on employee creativity, 2) examine the influence of transformational leadership on organizational innovation, 3) examine the influence of employee creativity on organizational innovation, 4) examine the influence of transactional leadership on organizational innovation mediated by employee creativity. This research was conducted on employees of the Kendari City Local Government. The population of the study is the state civil apparatus that has positions in local government agencies totaling 1132 people. The sample determination size used the Slovin formula with five percent precision, so that the sample amounted to 296 respondents. Data collection methods using questionnaires. The research model uses a structural assessment model so that the research data is analyzed using Smart PLS ver 3. Research results: 1) transformational leadership has a positive and significant effect on employee creativity, 2) transformational leadership has a positive and significant effect on organizational innovation, 3) employee creativity has a positive and significant effect on organizational innovation, 4) transformational leadership has a positive and significant effect on organizational innovation mediated by employee creativity. Organizations that implement transformational leadership will develop the creative ideas of employees, and employees who have creative ideas will pour in service applications as a form of organizational innovation to provide excellent service and satisfaction to service users.

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