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The Impact of CEOs’ Transformational Leadership on Sustainable Organizational Innovation in SMEs: A Three-Wave Mediating Role of Organizational Learning and Psychological Empowerment

Year: 2020

Type: article

Abstract: The sustainable organizational innovation is of paramount importance for enhancing productivity in firms and provides organizations with the strategic direction needed to allow them to perform at an international level. The leadership styles play a key role in their firms’ potential to consistently innovate. Using data from a time-lagged design with three waves, CEOs of Chinese small and medium-sized enterprises (SMEs) participated in the study. The findings reveal that psychological empowerment mediated the relationship between transformational leadership and sustainable organizational innovation. Organizational learning was found to indirectly effect the relationship between transformational leadership and sustainable organizational innovation. It also demonstrated that psychological empowerment had a positive impact on organizational learning. The findings indicate the strategic significance of transformational leadership and its influence on sustainable organizational innovation for SMEs. Theoretical contributions and practical implications were also discussed.

Source: Sustainability

DOI: 10.3390/su12208620

Authors: Saira Begum, Enjun Xia, Khalid Mehmood, Yaser Iftikhar, Yan Li

Institutions: Beijing Institute of Technology, Tongji University, University of Sahiwal

Language: English

Topic: Employee Performance and Leadership

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,901