IMPACT OF TRANSFORMATIONAL LEADERSHIP ON

ORGANIZATIONAL INNOVATION AND

PERFORMANCE: A CASE OF SECONDARY EDUCATION
INSTITUTES

By

SYEDA SHARAFAT UN NISA BIBI

Roll No 50622

Research supervisor

DR.MHUAMMAD YASIR

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY, MANSEHRA

SESSION 2018-20
 IMPACT OF TRANSFORMATIONAL LEADERSHIP ON
ORGANIZATIONAL INNOVATION AND PERFORMANCE

A research submitted to the Department of Management Sciences Hazara University

Mansehra, for Partial fulfillment of the requirement for the degree of Master of Sciences

By

SYEDA SHARAFAT UN NISA BIBI

Roll No 50622

Research supervisor

DR.MHUAMMAD YASIR

DEPARTMENT OF MANAGEMENT SCIENCES HAZARA

UNIVERSITY, MANSEHRA

SESSION 2018-20

ii
IMPACT OF TRANSFORMATIONAL LEADERSHIP ON
ORGANIZATIONAL INNOVATION AND PERFORMANCE

By

Syeda Sharafat un nisa bibi

Approved by

_________________________________

Supervisor

__________________________________

External Examiner

_________________________________

HOD Department of Management Sciences

iii
 CERTIFICATE
This is to certify that this research entitled “Impact of Transformational leadership

Style on Organizational Performance and Organizational Innovation “has been

completed by Miss. Syeda Shrafat-un-nisa Bibi under the supervision of the undersigned,

towards the partial fulfillment of the requirements for the degree of Masters of Science

___________________

___________________

Head of Department Research

Supervisor

Dr. Abdul Majid Dr. Muhammad Yasir

Dated: / / / 202

iv
 DECLARATION

I, hereby declare that this paper entitled “impact of transformational leadership on

organizational innovation and performance” submitted to the Department of Management
Sciences, Hazara University Mansehra in partial fulfillment Hof the requirements for the
degree of Masters of Science is my own work. Moreover, it has not been previously been
submitted for any degree nor has it been submitted as part of the requirements for a
degree at this department or any other institute.

_________________________

Syeda Shrafat Un Nisa Bibi

v
 ACKNOWLEDGEMENT
First, I am grateful to the “ALLAH” who is most Merciful and Almighty. Who blessed
me ability and confidence to start and complete my thesis. I also pay darood o salaam to
Muhammad (SAW) who is the one and only role model for the world.
Then I would like to thank my respected sir and supervisor Dr. Muhammad Yasir
for supervising and guiding me tremendously. Here I must say that without his guidance
and encouragement I was not able to complete my work. I am also very thankful to my
Sir Dr. Sajjad Afridi for his best assistance as well as friends and fellow research
students. Moreover, I am very thankful to all those who provide help and guidance
thought my research. I am very thankful to research committee and staff members of
department of management sciences Hazara University. I am also extremely thankful to
the management of Secondary Education Institutions and the respondents who provided
me accurate data.
I also pay my sincere gratitude to my family members my brother Syed Sadaqat
Hussain Shah who help me, taught me practical segment and for his supervision, and
significant contributions.

vi
 Table of content
CERTIFICATE .............................................................................................................. iv

DECLARATION ............................................................................................................ v

ACKNOWLEDGEMENT ............................................................................................. vi

Table of content ............................................................................................................. vii

LIST OF FIGURES ........................................................................................................ xi

LIST OF TABLES ........................................................................................................ xii

ABSTRACT ................................................................................................................. xiv

CHAPTER 1 .................................................................................................................... 1

Introduction ..................................................................................................................... 1

1.1 Background of the study ........................................................................................... 1

1.2 Transformational leadership style (TL)..................................................................... 2

1.3 Organizational Performance (OP) ............................................................................. 2

1.4 Organizational Innovation (OI) ................................................................................. 3

1.5 Problem Statement ................................................................................................. 4

1.6 Research Questions ................................................................................................ 4

1.7 Research Objectives ............................................................................................... 4

1.8 Significance of Study ........................................................................................... 4

1.9 Organization of the study ..................................................................................... 5

1.10 Conclusion............................................................................................................. 6

CHAPTER 2 .................................................................................................................... 7

LITERATURE REVIEW ................................................................................................ 7

2.1 Introduction ............................................................................................................... 7

2.2 Understanding leadership .......................................................................................... 9

2.3 Transformational leadership (TL) ............................................................................. 9

vii
 2.3.1Transformational leadership Theory…………………………………..10
2.3.2 Definitions………………………………………………………………..11
2.3.3.3 Intellectual Stimulation……………………………………………….15
2.3.3.4 Individualized Consideration…………………………………………15
2.4 Organizational Performance (OP)…………………………………………..16

2.4.1 Definitions……………………………………………………………….17
2.5.2 Perspectives of organizational performance………………….……….18
2.3 Organizational Innovation (OI)…………………………………….…………18

2.3.1 Phases of innovation……………………………………………….…….19

2.3.1.1 The generation of idea………………………………………….……..19
2.3.1.2 The promotion of idea………………………………………….……...20
2.3.1.3 The execution of idea…………………………………………………..20
2.4.2 Dimensions of innovation ……………………………………………….21
2.4.2.1. Product innovation…………………………………………………....22
2.4.2.2. Process innovation…………………………………………………….22
2.4.2.3. Administrative innovation……………………………………………22
2.4.3. Determinants of innovation…………………………………………….22
2.6 Transformational Leadership and Organizational Performance .......................... 23

2.7 Transformational leadership and Organizational Innovation .................................. 24

2.8 Organizational Innovation and Organizational Performance ................................ 25

2.9 Transformational Leadership, Organizational Performance and Organizational

Innovation...................................................................................................................... 26

CHAPTER 3 ................................................................................................................ 28

RESEARCH METHODOLOGY .............................................................................. 28

3.1 Introduction ........................................................................................................... 28

3.2 Research Approach ............................................................................................... 28

3.3 Research design .................................................................................................. 28

3.4 Theoretical Framework (TF) .............................................................................. 29

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3.5 Hypothesis of study .............................................................................................. 29

3.6 Population.......................................................................................................... 30

3.7 Sampling............................................................................................................. 30

3.8 Questionnaire Design ......................................................................................... 30

3.9 Data Collection .................................................................................................. 32

3.10 Conclusion ...................................................................................................... 32

CHAPTER 04 .............................................................................................................. 33

DATA ANALYSIS AND INTERPRETATION ....................................................... 33

4.1 Introduction ........................................................................................................ 33

4.2 Analysis of demographic variables ....................................................................... 33

4.2.1 Gender……………………………………………………………………….33
4.2.2 Age…………………………………………………………………………….34
4.2.3 Education……………………………………………………………………...36
4.2.4 Experience…………………………………………………………………….37
4.3 Reliability Test (RT) ............................................................................................. 39

4.4 Descriptive Analysis (DA) ................................................................................... 40

4.5 Inferential Analysis (IA) ....................................................................................... 40

4.6 Regression Analysis ............................................................................................. 42

4.9 Multicolinarity Test ................................................................................................. 44

4.10 Mediation analysis............................................................................................... 45

4.11 Heteroskedasticity Test ....................................................................................... 47

4.14 Hypotheses Testing ............................................................................................ 47

4.16 Conclusion ..................................................................................................... 49

Chapter 5 ...................................................................................................................... 50

Conclusion, Findings and Recommendation ............................................................ 50

ix
5.1 Introduction ............................................................................................................. 50

5.2 Findings of the study .......................................................................................... 50

5.3 Conclusion.......................................................................................................... 52

5.4 Implications of study .......................................................................................... 52

5.5 Limitations of study ........................................................................................... 53

5.6 Future Recommendations.................................................................................... 54

5.6.1 Managerial Recommendations…………………………………………….54

5.6.2 General recommendations………………………………………………...54
References ..................................................................................................................... 56

x
 LIST OF FIGURES

Figure 3.1 Theoretical Framework

Figure 4.2.1 Frequency distribution of respondents by Gender

Figure 4.2.2 Frequency distribution of respondents by Age

Figure 4.2.3 Frequency distribution of respondents by Experience

Figure 4.2.4 Frequency distribution of respondents by level of education

Figure 4.2.5 Frequency distribution of respondents by Income

xi
 LIST OF TABLES

Table 3.1 Questionnaire Design according to sections and factors

Table: 4.1 Frequency Distribution of Respondents by Gender

Table 4.2 Frequency Distribution of Respondents by age

Table 4.3 Frequency distribution of respondents by level of education

Table 4.4 Frequency distribution of respondents by experience

Table 4.6 Cranach’s Alpha

Table 4.7 Reliability of variables

Table 4.8 Descriptive Statistics
Table 4.9 Pearson’s Correlation Coefficient

Table4.10 Regression analysis

Table 4.11 ANOVAa

Table 4.12 Coefficients of regression

Table 4.13 Model Summary

Table 4.14 ANOVAa

Table 4.15 Collinearity Coefficient

Table 4.16 Model Summary

Table 4.17 Model 1

Table 4.18 Model Summary

Table 4.19 Model 2

xii
Table 4.20 Direct effect of X on Y

Table 4.21 Indirect effect of X on Y

Table 4.22 Heteroskedasticity

Table 4.23 Summary of hypotheses testing

xiii
 ABSTRACT
The basic purpose of this research is to check the impact of transformational leadership
style and organizational innovation through theoretical framework in secondary
education institutions in Hazara Pakistan. This study investigates the relationship
between variables in educational sector from Hazara region with the population of 251
and 154 responses were collected. The data collected through questionnaire technique,
which comprised of two sections: one section consisted of demographic information of
respondents while the other section related to variable’s information and each variable
based on number of items and the total items or questions, which asked to get the
information, was 28. The designed copies of questionnaire were distributed among
employees personally and collected in approximately 20 to 30 minutes. All participants
responded according to their personal experiences. Findings of study indicated that
organizational innovation acts as mediator between transformational leadership and
organizational performance. Transformational leadership is independent variable, which
has direct influence on organizational performance and innovation. Moreover,
organizational performance is serving as dependent variable that influences the strong
impact of transformational leadership and organizational innovation. Result of analysis
reveals that positive impact of leadership on organizational performance and innovation,
and direct effect of organizational innovation on organizational performance, moreover
the mediating effect of organizational innovation on transformational leadership and
organizational performance. Our findings propose that leaders ought to seek improved
level of organizational performance, for the improvement of innovation in organization.

xiv
CHAPTER 1

Introduction

1.1 Background of the study

For the advancement and improvement in the work behavior of the employee,
leadership role is much of significance (Khalili, 2016). It is essential to recognize and
understand the main tools that permit the right person to turn into a good leader.
Leadership relates to existing relationship among leaders and followers (Northouse,
2012). It is seen that an efficient leader gives more time to his work and puts extra efforts
than any other individual in an organization (Gibson, 1991).
Leadership has considerable impact on the performance and also important for
improving organizational productivity. According to Courtright, (2015) transformational
leadership (TL) is helpful for the employees in achieving the desired results whether their
performance measured as an individual or teamwork. At the workplace transformational
leadership has recognized as an aptitude to persuade the performance of employees
(Humphrey, 2012).Social context of study defined transformational leadership as
multifaceted and complicated factor.(Gardner,2010). It has often been associated along
problem of consistency in leadership’s aim, lack of planned strategies s and collaboration
for perfection in performance, and absence of overall dedication to the comprehensive
behavior and performance. Lack of support and encouragement becomes the main cause
of developing appropriate leadership style.
A special importance been given to the phenomenon that leadership has a
considerable influence on firm advancement. Leaders must be aware of how they can
explicitly choose and initiate innovations, specify particular targets, and support creative
capabilities of the employees of organization. (Harborne 2003). Different scholars have
given much importance to the innovativeness and leadership that can have considerable
effects on firms competitiveness and performance (Samad, 2011). Encouraging and
unique leadership who supports the collaboration, group work, and encourage
organization for more innovation (OI) which might be most important for a firm to
become more innovative (Bettis-Outland, 2012).It is also important to know the

1
organizational effects on innovation (Ganter & Hecker, 2013). In spite of numeral
comparable examined effects, researchers are giving intensifying concentration to the
prospect of shared competence of organizational innovation serve as vital tool for the
determination of performance (Jimenez-Jimenez,2008). It often considered that firm’s
innovativeness is a way to enhance organizational performance (OP). Most of
organizations are not able to develop it appropriately. For the development of innovation
in an organization, researchers give their eagerly attention to the question that how it
would be possible”(Zollo , 2002).

1.2 Transformational leadership style (TL)

In TL followers are persuaded by their leadership’s behavior and interest

(Howell,1993).TL are those leaders, who positively predict an opportunity for a firm,
keep themselves mostly for humanizing workers confidence encourage workers to show
their abilities, discuss achievable vision and mission with workers of a firm, also engage
themselves in encouraging workers for collective functioning to satisfy their needs
(Peterson,2009).They consider figurative conduct of the leader (e.g., encouraging,
imaginative communication; ethics) as divergent to financial dealings among the leader
and employees in organization(Avolio 1999).Workers follow and advocated theirs
leader’s ideology and also their leader make few visits during job in order to make sure
that theirs self-conceptualization is matching with the job performed by them
(Bono,2003).

1.3 Organizational Performance (OP)

Tosi, (1982) anticipated that some leaders extremely focus one executing plans,
ranking, and rewarding worker performance and reveal energetic supervision by
exceptional conduct to rectify errors; they can give out important role to develop firm
performance. Generally, leadership conduct and TL particularly has long been though
foremost intellectual aspect which impact on Performance and innovation in an
organization (Keegan, 2004).According to the Leadership Quarterly 7(3): 385–425.It is
strongly anticipated that TL will have important role to develop the performance of an
organization, as well as support staff to get chance, and that chance or risk-taking yields

2
constructive influence on their performance in tentative setting (Waldman ,2001).TL
motivate, encourage and support workers to be creative and to attain tricky objective, and
they encourage workers to come up to problems related to job in all the directions and
dispirit theme applying conventional ways in complicated tasks. However, it is
anticipated that encouraging leaders have concrete and constructive influence on the
outcome of an organization distant from the impact of transactional leadership on the
firm performance.

1.4 Organizational Innovation (OI)

Changes are introduced by management which are new to organization

specifically technological innovation, ‘is a repetitious course started by the insight of
newly developed business or new service prospect for a technology-based creation which
leads to improvement, invention, and promotion responsibilities determined for the
commercial success of the inventiveness’’ (Garcia,2002). If an organization wants to get
competitive edge over other firms then it must has the ability to innovate (Chen, 2010).
Innovation is very essential for the survival of modern corporations, without creativity it
is very difficult for organizations to keep pace with other alike businesses (Chan,
2011).Though organizations usually discern innovativeness as naturally useful for a firm
success RICE, J. (2010).
Researches on educational leadership has been conducted in recent years, and in
these such type of researches school administration often known as principal play a
vital role in the educational achievements of their institutions. This research will try to
identify and analyze that how transformational leadership will positively influence
institutional performance and how these leaders may be helpful in organizational
innovation that immediately influences organizational performance. Similarly, in
education systems if principal as a good leader play a vibrant part and make himself ideal
leader instead of bureaucrat, direct system in organized manner with the consideration of
innovation there will be good organizational performance in consequences.

3
1.5 Problem Statement

Innovation is very important for an organization, which is often considered a way

to improve organizational performance. Although some preceding studies, contributed
extensively in innovation, but have not addressed how the usefulness of innovation might
differ with the influence of transformational leadership style. This study proposes that
staff and leadership both should identify and better understand the factors influencing
innovation. This study will take some Secondary Education institutions of Hazara region
to investigate how transformational leadership styles and organizational innovation have
an effect on performance.

1.6 Research Questions

Q1. What is the impact of transformational leadership style on Organizational

innovation?
Q2. How transformational leadership styles affect organizational performance?
Q3. How organizational innovation influence organizational performance?
Q4. Does organizational innovation mediates between transformational leadership
organizational performances?

1.7 Research Objectives

1. To examines the impact of leadership style on organizational innovation.

2. To determines the role of transformational leadership on organizational Performance.
3. To check the influence of organizational innovation on organizational performance.
4. To assesses the mediating role of organizational innovation between transformational
leadership and organizational performance.

1.8 Significance of Study

Data collection assists to understand comprehensively the level of influence of TL

on OI and performance. The consequences of this research will extensively add to
existence studies as well as provide comprehensive detail about the relationship
between different variables. This study would be useful for academic and managerial
purpose. In the perspective of current study, leadership and management of
4
 educational institutions ought to consider the usefulness of different programs of
HRM to check as well as advance workers innovative capabilities, through the
implementation of innovative strategies.

1.9 Organization of the study

Chapter 1
This chapter gives brief overview of the thesis. It includes study background, brief
explanation of variables, problem statement, significance, objectives, research questions,
and in last chapter layout.

Chapter 2
The chapter 2 is about the comprehensive literature on TL, OP and OI. It also
gives the thorough explanation of relationship between study’s variables as relationship
between Transformational leadership (TL) and Organizational performance (OP),
Organizational performance (OP) and Organizational innovation (OI), and explains the
relation of these variables as a whole.
Chapter 3
This chapter comprises upon different methodologies that are using this study, and
brief explanation of data collection methods, population sample size and the theoretical
model.
Chapter 4
This chapter consists of data analysis and different methods used for analysis
section of the chapters gives the detail of demographic variables and the second part of
chapter gives the result of correlation, regression analysis as well as assumptions. Last
section of chapter gives the result of mediating variable.
Chapter 5
Chapter 5 is about the findings, recommendation, recommendations for future
research, limitation related to study and in last gives the concluding remarks about
the study.

5
1.10 Conclusion.

This chapter was about the impact of TL that will influence the performance and
creativity of academic staff in secondary education institution of Abbottabad and
Mansehra KPK Hazara Pakistan. This also provides the layout of the whole study
including background, research problem, questions, objectives and importance.

6
CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

Leader’s role in organization is much significant specifically in designing

organizational mission and vision, determining and formulating objectives, making
strategies and procedures to accomplish the established goals efficiently as well
effectively by directing and sharing the activities and efforts of organization, (Xu &
Wang, 2008). Different leadership styles have been given much attention to most
significant influence of individuals on the innovation of firm, as leader may decide to
initiate innovative ideas reliably into firm. They established particular tasks; persuade
innovativeness, and ideas from staff (Rosing, 2015).
Researchers have been emphasizing on different questions related to impact of
LS and innovation on higher performance and the impact of these on the firm past
performance If an organization wants to become more innovative, it is necessary for that
organization or firm to have encouraging leadership. Encouraging leadership style means
leaders with some sort of unique traits with the quality of being trendy, good competitor,
counselor and with a clear vision. This type of leaders encourages and support
innovativeness, individual plans with the help of inter-relations, unity as group through
knowledge and competency. Unity in teamwork ought to be seen unity between groups,
individuals having the balancing, abilities are accountable, are devoted to point of
reaching objectives which are familiar to all. For this purpose, administration, with the
help of its courage, ought to support group work and the construction of unified effort of
team that support the knowledge association for more OI (Bettis-Outland, 2012). In the
view of Tourish (2014), effective leadership play an imperative task to find out the
achievements and collapse of any sort of association.
Radical changes in marketplace environment, globalization and rapid changes in
technology become the basis of organizational speedy changes in order to face severe
rivalry. Porter 1990), said that till the last of the twentieth century, the majority of
developed economies had stimulated to an “innovativeness-driven” phase. In that period

7
of time organizations competed with each other at adopting of quick and useful
innovation; but also in this perspective lately, it is particularly vital to achieve a higher
consideration of factors influencing the flourishing amplification of OI , (Schweitzer,
2014; Latemore, 2014).
Thus, an organization ought to encompass the aptitude to study with intention to
face the same changes in the environment. The administrative style of leadership will
have a concrete role in the work of individual as well as on organization, and that will
unswervingly influence the relations among staff and the organization (Rosing et al.,
2011). Efficient control may too arouse the creativeness of workers, by communicating
the vision that will improve the learning ability and vigor of the association (Haase et al.,
2015).
Transformational leadership theory postulates that leaders show particular
behaviors that increase in degree of employee’s new plan by that they advance employee
OI and OP (Barrick, 2008). In order to enhance the performance, transformational leaders
give confidence to staff through the provision of adequate self-sufficiency, to choose the
way to execute job behavior, encourage OI and support workers to employ all the
accessible possessions necessary to advance creativeness (Gumusluoglu and Ilsev, 2009).
To advance and enhance the performance of any institute is the responsibility of the
manager thus, manager act as an important person to perform such tasks that support and
encourage the staff in order to discover the innovative ideas. It is necessary for manager
to understand performance management at first in order to achieve the desired results.
Sustainability in competitive advantages shows the uniqueness of an organization as
compare to others same alike firms which make the firm able to maintain its consistency
in surpass performance (Porter, 1985). If organization carries on its operations from its
competitor’s perspectives instead of its routine activities, then it obviously maintains its
competitive advantages. Liu et al. (2013) stated that OP is the advancement in
organizational responses towards changing environment comparatively to its rivals or
competitors. In order to enhance the level of performance as well as for getting
competitive edge over other competitive forces the firm must have go with proactive and
innovative approach/ products and services.

8
2.2 Understanding leadership

Klein et al. (2013) described that leadership is an important organizational ability,

concerning with aptitude to support a collection of populace towards a general purpose.
Leadership gives concentration towards advancement of supporters, their requirements
and structures their ability. It is very important for executives having leadership role that
center the progress of system of morality of employees, their stratum of inspiration and
ethics with the enlargement of their expertise (Uchenwamgbe, 2013; Ismail et al., 2009).
This technique assists supporters to attain their targets in their certain organizational
environment. According to Khan et al. (2014), supporters get encouraged by
communicative and adaptive system in organization.
In the view of Michael (2010) leadership has a through influence on organizational
relationship and its achievement. It specifies the standards, customs, revolutionize
acceptance and staff inspiration. They form organizational policies including their
implementation and usefulness. It ought to emphasize that leadership may be involved at
each phase of organization not only at executive and managerial level. Triumphant
leaders carry out, though, encompass single item in general. They have impact on all
those happenings that take place all around them for the purpose to get more advantage
from available resources i.e. human resource, capital resource. This achievement may
only be attained perhaps continued in organizations wherever suitable leadership style
applied at a specified instance. Leadership is also a practice that includes the employ of
power that impact to form a team or organizational objectives, stimulate attitudes for
achieving the objectives and also describe the diverse culture of staff (Northouse, 2009).

2.3 Transformational leadership (TL)

A number of leadership styles exist with their unique features, i.e. an attributive
leader; a theory recommends that the leader is completely an acknowledgment prepared
by individuals for others in organization. These are charismatic leaders and their
supporters formulate trait of the leader's courageous/remarkable capacity.
Leader with the capabilities of initiation, command, train and stimulate supporters
through his or her charisma. The technique that based on realization of existing situation
that there is not a particular style of leadership that is generally appropriate for all

9
conditions (Ritawati, 2013). A leader is able to decide the sort of leadership style that
suits the institutional goals motivated by leaders in the institute he leads.
Theories related to leadership have been considering the impact of remarkable
leaders as House and Shamir (1993), called them “charismatic leaders”, whereas Bass
(1985) stated that these leaders as "transformational leaders”. Major actions of
transformational leadership includes the development and identification of collective
goals, presenting an idea or plan , offering individualized consideration and behaviors
formation, provision of logical stimulation, and set the prospects of high performance
(Podsakoff, MacKenzie, &Bommer, 1996)
Wang & Rode, (2011) stated that transformational leaders ask their staff to attempt
new approaches for the purpose to improve their lives and giving up traditional methods
of doing work. Similarly, they emphasize on the participation of staff in organizational
affairs, to persuade workers towards advancement by developing and recommending new
suggestions for the success of organization.

2.3.1Transformational leadership Theory

Theory of Transformational Leaders is different from preceding and modified

theories. This theory based on its organization and it involves relationship of followers
in work processes or behavior associated with individual aspects towards the institution
and a technique that brings specific and visible benefit. In the view of House & Shamir
(1993), “the transformational leaders uplift the beliefs and enthusiasm of other leaders
and supporters. It is observed that transformational leaders usually occupied in relations
with supporters based upon general standards, values and tasks”. This influences the
performance of workers that leads to accomplishment of objectives. Bass explained it as
that transformational Leader “try to encourage supporters to overlook their wishes by
giving them suggestion to go beyond their personal benefit and attempts for advanced
desires”. Transformational theory accepted the Maslow’s hierarchy of needs (1954).
Transformational leadership is a way to modify and move toward accomplishments
through their values, beliefs and behaviors that inform Leader practices and the ability to
direct change. It suggests that supporters and leaders should prefer the institutional
benefits rather than their personal benefits. Leader emphasizes on supporter’s needs and

10
participations for bringing change in the behavior of each individual in an organization
through persuasions and empowerment (House &, 1997).
The ethical extent of this theory sets this theory apart from preceding theories.
The transformational leader known by their potential to recognize the necessity of
transformation, put on the obligations and contracts of others, make an illusion, which
direct change, and embed the transformation (MacGregor Bums, 2003). He further said
that such individuals interact with their workers separately and motivate them to extend
their realization, skills and ethics by giving importance to their seriousness and efforts.
These leaders create a form of Leader and support future vision. They are “farsighted
Leaders who search for and request their supporters to ‟ improve personality and move
them towards elevated frequent desire and purposes” (Macgregor Bums, 2003).

2.3.2 Definitions

According to the Burns (1978) the inspiring behavior of leaders towards their
supporters for the purpose to achieve the organizational objectives instead of their
personal benefit is called TL.
Stephens et al. (1995), gave his view that the TL is center of attention generally
related to follow the set objectives of organization while doing so they ignore the moral
values of worker’s advancement
A TL uses and converts the ethical standards of supporters and eloquent these
standards to support objectives and vision of (Bass 1985).
The TL style occurs whilst the management induces an environment of reliance
which ensures that worker performing further than their potential (Avolio BJ 2000).
TL style is a motivating technique that can persuade the inspirational capability of
workers (Avolio et al. 2004).
Yukl G (2002) stated that the transformational leadership depends on advance
harmony of supporters; including values, wants, and the ethics.
McColl-Kennedy and Anderson (2005), define as TL has an attraction,
motivation, consistent support, and individualized thought of workers. TL is principled
leadership style that uses a leader’s aptitude to support logical insight by stimulation.

11
 TL absolutely imagine the future situation for the firm, hold mainly in civilizing
workers‟ confidence by serving them to comprehend their ability, corresponded
attainable tasks, illusion of institution to its workers, share with workers to recognize
their wants and working out with cooperation to gratify their wants (Myrowitz, 2009)

Seaver DS (2010) defined TL as a leadership style by which one or more

personnel hold with others in such a way that influential and supporters lift one another to
high rank of inspiration and integrity
Putra & Subudi (2015) argued that if company can apply TL properly, it would be
persuasion for workers, for achieving a sense of gratification working behavior, and that
leads positive performance
TL stimulates the task force for more improvement in their personal interests for
the betterment of the association (Robbins & Judge, 2013).
Bass, (1995) define TL as it associated with constructive consequence on personal
level and on managerial levels.
TL motivate supporters to achieve top level needs i.e. need of self-actualization,
self-esteem (Bass, 1985), and are leaders in progressing supporter’s inspiration in a
course of “selflessness and accomplishment of managerial tasks more than individual
benefits
A strong indication publicized that supporters of TL tend to be much creative,
despite of this that measurement of performance individually or as whole and whether the
results of performance within tasks, additional tasks as innovation,(Wu, 2013).
The leadership style enhances perceptions of mutual concerns among the firm’s
members as well as facilitates them to attain their mutual objectives. Transformational
leadership attracts such consideration because of its significance and relevance to firm
efficiency.
In the view of Robbins (2013) an aptitude that motivates individuals to attain
theirs objectives, the motivating sources may be structured or non-structured, because
management gives them administrative power.

12
 When workers and supporters are motivated and put into practice moral and
useful activities for firm and for themselves, it indicates the quality of leadership (Achua,
2010).
Yuki (2010) described that TL is the course that gives direction of shared
endeavor, and these shared efforts expended for the attainment of objectives.
Robbins & Judge, (2013 also stated that TL inspires workers in order to improve
their confidence for the betterment of institute and has an incredible influence on workers
and is an attempt to encourage staff in their work for accomplishing managerial goals
and fulfilling their wants at advanced level.
TL associated with constructive consequence on personal level and on managerial
levels. Transformational leaders motivate supporters to achieve top level needs i.e. need
of self-actualization, self-esteem (Bass, 1985), and are Leader in surging supporters
inspiration in the course of selflessness and accomplishment of managerial tasks over
individual benefits (Bass, 1995).
2.3.3 Core components of transformational leadership
2.3.3.1 Idealized Influence
It is the most inspiring aspect of leader’s personality in which supporters consider
their Leader as ideal and role model for them. The alternative term that is used for
Idealized influence is “charisma”. This type of personality trait establishes standards,
which stimulates, makes ethical standards that instigate, make logic, which create a
sagacity of objectives between groups. Naturally, Idealized influence is encouraging and
supportive. Idealized influence establishes standards for the purpose to explain the
important things in life. Charismatic or fascinating leadership style and Idealized
influence are interrelated (Yuki, 1999).Fascinating Leader encourages assurance in their
supporters against their rivals. It is their expression of self-reliance in supporter’s
awareness to formulate in them a sense of sacrifices and a capability to achieve particular
tasks, which is leading and inspiring dynamism of Idealized influence and role-modeling
manners (Shamir, 1993). With the help of confident employees, leaders can attain high
achievements. The Personality trait, which leads productivity and determination in
decisions, is an Idealized influence of leader. Shamir (1993) said that this type of leaders
show sincerity for maintaining self-esteem prevailing and persistent societal need,

13
convert the supporters of theirs from routine conversation, show themselves an ideal
person, and support followers to “attain the objectives of the firm”.
Self-control and stable emotions are necessary for such leaders. They keep
themselves away from internal affairs and show their abilities to make their destiny
advance. According to John Marshall who was the CEO of Solaris Power, in the
perspective of Idealized influence transformational leaders task of teaching supporters as
well as make them knowledgeable about their core tasks and responsibilities. Such type
of leader is a learning Leader. The core aspect of Idealized influence are belief building,
sentimental control, independence, creation of common sense abut purpose, confidence.
2.3.3.2 Inspirational Motivation
Giving the awareness to supporters, giving them confidence to achieve the vision
and mission of institute, and persuade workers in order to make them understand the
vision and mission is the basic aspect of Transformational Leadership style of
Inspirational Motivation. “This aspect explains the purpose of institutional establishment
beside of personality trait of Leader” (Bass & Avolio, 2004). Rather than overpowering
staff, an inspiring and motivated leader, supports the staff in the institutional quest
depiction finest from all of them. To prevent from “experimentation and avoid from
creativity leads discouragement in confident and motivated staff members of institutes”.
Leaders having such behavior motivate the staff by giving them authority to take
decisions by themselves without any sort of direction and supervision. With this style
and behavior, leaders establish rules for supporters instead of sharing their hallucination
and mission in explicit behavior, and supporting them to build up ordinary conditions and
situations for themselves as well as for institutional development (House and Shamir,
1993). It often seen that successful executive authorities mostly active with their workers
through stimulation, giving them reward and make them correct and replace them, but if
they not succeed, in that way, formulating chances for others. Leaders with this type of
behavior formulate illusion build communications handle challenging workers through
encouragement, and participation.

14
2.3.3.3 Intellectual Stimulation

Leaders have strong intellect and motivating ability who have such motivating
power that persuade their supporters not only from their communicating and courthouses
abilities but also stimulate them through their intellect and wisdom. They provoke
supporters to be creative and make them realize that they must accept difficult challenges
as important aspect of their job. Leaders with Intellectual Stimulation traits always have
balance in their sentiments and logics while problem solving. Intellect leaders always try
to promote comparable skills in their employees. These leaders usually give importance
to mutual consensus while formulating techniques for problem solving. This technique
mostly uses in training sessions, coaching, mentoring personality building. This approach
always tries to build character, skill and others alike behaviors (House and Shamir, 1993).
“In other words, Leader having specified trait need to untie the ambiguities of difficult
tasks to create a sagacity of course that they consider meaningful and useful for them as
well as for their senior workers to advance their participation in the particular task.
Intellects and support have many parts of working activities. IS is the It is aptitude to use
wisdom for the purpose to motivate as well as get make them participate enthusiastically.
The main parts of this trait are sagacity, creativeness, agreement administration, training,
encouraging, tough, and participation.

2.3.3.4 Individualized Consideration

It is related with the fundamental TL attitudes concerning to staff like basic

participation at the place work. These Leader show apprehension about their staff‟
desires, and are prepared to boost up and prepare them towards advancement of most
wanted behavior of work place. Their job changes as of contributory toward autocratic
approach. In concise, “basic essentials of these consideration based upon encouragement,
compassion and training of workers and broad and advice-giving technique”.

Transformational Leadership absolutely manipulates the performance of the

workers by communicating mission and vision for the purpose to motivate workers as
well as facilitate their hard work (Bass, 1985). These Leader could be confidently
influence institutional OP by them through supervision as of the higher administration

15
panel. Through rising group unity, inspiration, and target similarity inside the top
administration team, transformational leaders assist top-level performance of institutions
(Barrick, 2008). Moreover, TL at the higher level of institutions might serve up the same
as ideal person for lower level leaders, motivating (cascading down) TL leadership all the
way through the institute (Yammarino, 1999). At last, transformational leadership could
persuade the performance of organization by their influence on the climates of
organization, systems, and policies, consequently environment of work is more
encouraging to transformational leadership (Chuang, 2007).

2.4 Organizational Performance (OP)

It is the goal of every organization to persuade its employees for the purpose to
increase organizational performance. The concept of new organization demands other
measurements data for decision makers in order to make appropriate decisions and for
investor accurately assess performance of firm. Organizational performance is the
derivative form of the word OP or real performance, which refers work performance or
attainments, attain by workers. In order to understand the performance (work
performance) is the work of superiority and overall objectives achieved through staff in
accordance with the tasks assigned to them. Performance may be outcome or intensity of
accomplishment of a person for the duration of a specific time.
OP is the derivative form of the word Organizational Performance or real
performance which refers performance of workers or attainment attains by workers. In
order to understand the performance is the work of superiority and overall objectives
attained through staff in accordance with the tasks assigned to them. Performance may be
outcome or intensity of accomplishment of a person for the duration of a specific time,
which specified for performing the job. This job consists upon multiple behaviors, as
rules for work, a planed criterion that has been already established with the team
consciences. Performance might relate to attitudes and certain behaviors of individuals at
work place. Workers carryout their tasks in specific way that add to organizational
objectives (2000).
The performance of employees based on diverse aspects however, the most
considerable is training, which improves the efficiency of employees (Khan, 2011).

16
Experienced employees tend to show better performance because of their competencies
and skills resultant from more career practice. Richard et al. (2009) describes that OP is
that important perspective of firm that signifies the degree up to which an organization
attain its objectives and goals.

2.4.1 Definitions

According to Cho and Dansereau (2010), OP means firm overall outcomes, which
is measure beside its objectives.

Tomal and Jones (2015) define OP as the consistent output or outcome of

organization, which compare with its intended results.
Organizational staff carries out tasks in a specific pattern and such patterns may
add to its objectives (Ones, 2000).
The behavior of workers in context of the performance of organization manifests
itself in three diverse behaviors (Lee, 2004).
In the view of Farlex (2012), it is the concrete yield/outcome of firm obtained
which computed beside its designed results.
Employee’s behavior in relation to OP may vary in manners (Dunlop and Lee,
2004).
Different aspects those influence the level of performance individually are
motivation, opportunity and participation’s capability (Armstrong, 2009).
Organizational performance refers to the firm’s performance, which is compare to
its targets (Wu & Liu, 2010).
Attitudes that have been measured or assessed as employees giving to
organizational objectives called organizational performance (Cook & Honaker, 2001).
The ability of individual to encourage, rouses, revolutionize and determined for
attaining the objectives of an organization (Hartnell, 2011).
Organization performance is the computation of firm growth, which indicates that
how well firm meeting its competitive needs and up to what extent firm attaining its
intended goals (Hamon, 2003).

17
2.5.2 Perspectives of organizational performance

Richard et al. (2009), describes that OP is the important perspective of firm that
signifies the degree up to which an organization attain its objectives and goals and it is
also important for formulating developed countries economies. OP is a display that
specified the level of firm accomplishment. Richards et al.2008 argued that previous
studies have not considered different perspectives of organizational performance, which
measure the overall performance of organization such as monetary and non-monetary
performance or both and organizations considered it as most important factor to improve
performance by raising their yield

Lusthaus and Andrien 1998 point it out that though organizational performance is
a necessary factor of firm as a few organizations measure this factor in different manners
in order to check their organizational internal and external affairs. However, in short term
organizational performance, and stakeholder performance or workers performance. In the
view of Armstrong (2009), the foremost aim of any firm is to get the competitive edge
over other firms. Organizational performance can be examine and asses through many
factors most of which are reduction in cost, earnings, volume of sales, turnover on assets,
turnover on inventory, are most frequent performance indicators and contentment of
client and invention progress are used some times as performance indicators (Rhodes et
al.2008)

2.3 Organizational Innovation (OI)

Innovativeness is a word that originated from the Latin word “novus “which
means latest, it may be define as innovative plan, technique /tool or the course of
introducing something new into the organization (Gopala Krishnan1994). Innovativeness
is very important for the success and survival of today’s organizations, if there is a lack
of innovation in organization than it become complicated for that organization to keep
pace with other same alike businesses (Chan, 2011).The literature related to
Innovativeness in organization has acknowledged three developing classifications, the
innovation determinates, innovation process of diffusion of internal firm and diffusion
research stream of internal firm.

18
 The process of innovation structured from the advance and newest ideas or catch
from the followers of the organization, other associates and supervisor subsequently there
is a process to correspond these plans to others. If the plan executed and accepted, then
introductory stage of execution also be accepted and confirmed. Even though researchers
and scientists highlighted significance of innovative work behavior (IWB) an extent of
innovative behavior (IB) is still very difficult to perform Hartog, (2008).Innovation at the
work place namely, identifying and availing of opportunity, plan making, and
implementation. Innovation theory focus on that innovativeness is much difficult from
creativeness and within the organization; it involves the implementation of the created
ideas. Hartog (2008) developed a view related to innovative work behavior IWB and
stated that IWB is a behavior, which identify the reason of ideas generation as well as the
behavior that are necessary for relevance and application of those plans. Hartog, (2008)
describes the IWB at the place of work that “it is behavior of individuals with the purpose
to attain the introductory point or aim to reach at starting phase in group or organization
i.e. ideas generation, processing, yielding or innovativeness and constructive measures.
Therefore, developed the IWB aspect of organization comprises upon two different stages
the introductory stage and application stage of productive ideas. At starting phase of
innovation, it is usually, the initiation of the advance practices usually formed by
observing future prospects: identify a prospect, problem occurring that needs to solve.
Opportunities identification includes discovering behavior to advance the existing
process, the newest deliverance course that strives to specify the work, product or service
process in different manner.

2.3.1 Phases of innovation

2.3.1.1 The generation of idea

It is the subsequent aspect of innovation. Innovative work behavior (IWB) builds

the initial pace to make full use of opportunities. In order to become innovative,
individuals need to find new opportunities/chances, develop innovative ways for the
purpose to take benefits of new and significant opportunities. Creation of ideas means
making draft with the aim to bring advancement in organization. Creation of ideas related
to entry of new product, service and process, obsessed on markets, with this increscent in
19
the process of work at it time, or generally is the key to the problems solving that has
recognized.

2.3.1.2 The promotion of idea

It is also a most significant feature at the time of idea creation. For most of the
idea, there is mostly need of selling ideas. Corporations are mostly necessary to enforce
the innovation in organization; this is the way of getting control to trade the proposal to
prospective associates. In many cases, the potential users of claimed innovativeness do
not take it useful and beneficial. In this way this process need skilled persons, those
might able to take it out in market before potential customers as well as persuade them.
At this stage, they try to persuade value addition in proposed innovative process.

2.3.1.3 The execution of idea

Moreover, proposed idea needed to execute and accomplished. Accomplishment

refers to advance the creations and practices that structure a fresh idea. Effort and a
result-oriented approach are necessary by staff to represent the plan. There needed to
change behavior for accomplishment through utilization of staff abilities for putting
those ideas into actions or practices.
2.4.1 Definitions
Some scholars defined the organizational innovation in following ways.
The organizational innovation means the generation or acceptance of behavior or
idea as well as successful execution of these inside of the organization Amabile TM
(1998), Damanpour F (1996).
According to Farlex (2012) Innovation is consequences of an association obtained
when the definite yield calculated beside its planned outcomes.
Organizational innovation organization’s capability to hold an organization-wide
atmosphere that is ready to acknowledge varied ideas and is open to newness and that
supports its every member to feel and think in new ways (Lin, 2006).
Organizational innovation means the beginning of any innovative creation,
progression, or structure into an association ` (Suranyi-Unger, 1994).

20
 Wolfe (1994) defines innovation as effect of a variety of organizational factors or
determinant, that is, culture of organization and transformational leadership. This feature
encourages Ahmed’s (1998) argument which is that “innovativeness is the engine of
change and it is mainly significant aspect of innovativeness in the environment of
organization and it its culture.
A course of generating institutional knowledge and learning that depict fresh data,
which may be accessible for organization, and serve as the base brick innovative
activities. Knowledge creation in an organization is the course that promotes not only
knowledge but also innovation in organization (Nonaka and Takeuchi, 1995).
Furthermore, the innovation in organization based upon the knowledge in
organization and in consequence, it advances that knowledge (Cohen and Levinthal,
1990)
Like any other competence, the innovation in organization based on the existence
of skills through firms creates resources and make latest implementations from same
possessions (Kasouf, &Peruvemba, 2002).

2.4.2 Dimensions of innovation

Innovation has become a key factor for numeral organizations in recent ages
(Damirch, Rahimi, &Seyyedi, 2011).Hartley (2005) argues that the increasing attention
in innovativeness originated from need of organizational survival in public as well as in
private sectors. Schumpeter & Elliott (1934) describes the innovation process as the
creation of a new brand, as well as that brand’s effect on economic development. Pasche
& Magnusson (2011) classify organizational innovation as being radical or incremental.
Whereas radical innovation requires entirely new knowledge and resources (i.e.
competence - destroying), incremental innovation builds upon existing knowledge and
resources. In the study of Felix, Jacqueline, & Jillian (2005 an innovation in organization
particularly classify into different dimensions.

21
 2.4.2.1. Product innovation

Product innovation means the development of a new product to become

commercially workable, worth and satisfying a place in equally the requirements of the
person or the wider marketplace (Damanpour& Gopalakrishnan, 2001; Ameen &
Ahmad, 2012). It starts by analyzing an accessible creation through examine and
convenient testing by mounting prototypes in order to make somewhat improved.

2.4.2.2. Process innovation

Process innovation is the creation of an innovative course or development in

existed presented procedure (Leonard & Waldman, 2007). It requires the adopting new or
enhanced way that might contain an amendment in manufacturing and designing of
innovative products ( Bai-zhou, 2006).

2.4.2.3. Administrative innovation

Administrative innovation viewed as bringing change in an organization through

administrated and structured way. It includes that the way through which workers
awarded, way to handle and circulated information, and way of managing different
activities (Ameen, Almari, & Isaac, 2018; Chew, 2000; Damanpour& Evan, 1984)

2.4.3. Determinants of innovation

Innovation and creativeness are key factors in competitive advantage and

organizational success as well as for a strapping financial system of a country (Woodman
et al., 1993). Nowadays, approximately every firm is facing a vibrant setting
characterized by speedy technological change, decreasing life cycle of product, and
globalization. Organizations, particularly technically motivated ones, need to be more
inventive and creative 1999). Creativity means the creation of new and constructive
ideas, and OI is the execution of creative idea successfully inside firm (Amabile et al.,
1996). Therefore, creativeness occurs at independently, whereas innovation occurs at the
managerial level (Cummings, 1996).
Different scholars have been focusing on analyzing that however some particular
influential traits affect the creativeness and some other scholars considered the different

22
organizational determinants effect the innovativeness. This study emphasizes on
immediate effect these types of factors. The way of generating novel product and process
including, the performing for the creativeness of innovative artifact or procedure, this
including discovery of products as well as work on it, that is necessary to convert that
plan or theory into the transformed structure (Belliveau et al. 2002).

2.6 Transformational Leadership and Organizational Performance

It is considering that an organization’s leadership certainly has a sturdy influence

on its performance, job contentment of employees and dedication of employees. Few
scholars stated that influential encourage and assist the staff to be spirited via efficient LS
(Bhargavi & Yaseen, 2016). Study indicated that LS has an important association with
organizational performance, and different leadership styles might have a constructive
association (Wang et al., 2010). Hence, the leaders adopt useful leadership style that
crucial to promote principles of brilliance in the proficiency growth of the participants of
the institutes.
McGrath & MacMillan (2000) argue that there is an important association among
LS and the OP. Efficient LS indicated like powerful resource of promoting advancement
and continued market competition and competitive edge (Al Khajeh, 2018). TL assist an
association to attain projected goals competently by connecting OP to granted incentives
and giving confidence to the workers that they have possessions required to acquire for
the completion of work. Sun (2002) made the comparison among TL and OP in schools
and other organizations and derived the consequence that the style of had a considerably
constructive relationship with the performance of an organization in educational
institutions as well as in other organizations. Kotter (1995), argued that without
leadership, the chance of errors happening enlarge the chances for accomplishment turn
strong. However, by this, leadership mutually stimulates and rewards persuade people’s
inspiration for attaining shared ends, with appropriate position in processes of creating,
transforming also altering the mores of organizational (Senge, 1990).
TL theory also states that as an agent of change TL leaders are proficient to attain
required performance. TL leaders struggle for internalizing a sagacity of recognition,
stimulate individual faith and arrogance (superiority) hold and admiration, support

23
innovative opinion, work confidently and direct through instance hence making them
ideal for other people(Barbuto, 2005; Yukl, 2010). According to Nazarian et al.(2017)
leadership have obtained a lot of concentration over an era in shaping OP. Literature
shows that TL considered as essential indicator for measuring OP.
It is identified that those leaders who demonstrate TL style are mostly efficient
amid enhanced results, and this performance comprise validation across hierarchy as well
as in private and public sectors (Bakar & Mahmood, 2013). Apart from transactional
leadership, it is strongly proposed that TL have considerable role to improve OP.TL
persuades employees for taking risk, in this way they get high profit and have
constructive effects on OP in tentative environment (Waldman et al., 2001). These
leaders stimulate workers to become innovative and to make them able to accomplish the
challenging tasks, persuade them and insists workers toward appropriate approach for
problem Wallis, J., 2013. TL leaders have absolute influence on OP by their undeviating
supervision. For increasing group uniformity, impetus, and target equivalence within top
management, these leaders also assist maximum OP (Yammarino, 1999).

2.7 Transformational leadership and Organizational Innovation

Transformational leadership behavior thoroughly related amid the factors of

innovativeness and creativeness, some of which are illusion, encouragement for
innovativeness, self-sufficiency, support and respect (Elkins and Keller, 2003). The
leader's behavior ought to encourage the creativeness advancement. Individual
deliberation act as incentive for supporters through appreciation and support logical
stimulus enhance tentative opinion by given encouragement for improvement, self-
sufficiency, and inspirational motivation give support in idea creation process by
stimulating supporters to consider the organizations vision (Sosik et al, 1998).
Leadership serves as important tool for formulating firm’s vision and play a
significant role in shaping firms’ prospective to make innovations possible by supporting
proper setting and make such decisions that advance successful creation and execution of
comprehension (Van de Ven, 1993). The investigation of firm leaders’ uniqueness (e.g.,
teaching, backdrop, qualities, behaviors has generated wide concentration from advance
practitioners (Storey, 2000). This Style of leadership has tinted as mainly vital impact on

24
innovativeness (Sethi, 2000).TL has been contrasted with conventional patterns, includes
an extensive planned illusion regarding to the benefits of modification and alteration
(Picken, 2000).It is essential to emphasize that leader’s thinking concerning to self their
duties in their firms firmly persuade their ability to support this sort of leadership in an
association. Numerous characteristics of TL are related for OI. TL has an attractive
illusion, giving utmost concentration to effectual communiqué and sharing morals (e.g.,
Adair, 1990) and encouraging a suitable atmosphere for inventive teams (Nadler, 1986).
They shore up shared processes of learning, mutual reliance among members of
organization and leaders and positive behavior toward their work’s recommended having
an impact on innovativeness (Bruce, 1994). TL boosts innovativeness inside the
organizational perspective; in other words, the tendency of organizations to innovate. TL
utilizes encouraging stimulus and logical inspiration, which are vital for organizational
innovativeness (Keller, 2003).
Transformational leaders support innovative plans inside their organizations; this
attitude reflects the “championing character” of TL (Howell and Higgins, 1990). Such
leaders have apparition that persuade their supporters, extend their readiness to execute
afar prospect, and give them difficult task to implement inventive procedures in their job.
The consequential sharp the intensity of inspiration is probable to improve organizational
innovativeness (Mumford et al., 2002).

2.8 Organizational Innovation and Organizational Performance

Innovativeness in organizations naturally pays attention on the enhancement on

OP (Damanpour, 1991). A numeral of preceding works has found that only definite
uniqueness of innovativeness and not the innovativeness absolutely has linkage to OP
(Gopala Krishnan, 2000).
A number of proceedings journals have the same opinion that OI absolutely effects
performance. Verified constructive associations among the innovation of organization, a
market orientation, and managerial knowledge indicated that the entire these essentials
mutually affected the prospective for improved performance.
The linkage of innovativeness, leadership and OP has bound practitioners to
accomplish additional study in the same period. Numerous researches have reported the

25
linear link among innovativeness and OP but the consequences stay tentative. Some
researchers showed positive association, negative and no significant relationship among
innovativeness and OP. Organizations also exposed to a variety of factors this implies
that innovativeness is not the only factor that affects organizational performance.
Domestic and exterior factors are sources of competitive edge that advance the OP. In
latest time, scholars have called concentration to the significance of organizational
possessions such as abilities of leadership for OP.

2.9 Transformational Leadership, Organizational Performance and

Organizational Innovation.

A research related to the innovativeness has conducted in 2018 which purpose

was to check the mediating effect of innovation on TL and OI. This research displayed
through evidence related to the innovativeness it indicated that if we use Innovation
Management Techniques (IMT) it will influence the obvious level of performance and
innovation in organization. This study used the large number of sample, and collected
data from Basque Region in Northeast Spain. The initial results of the research depicted
that innovative techniques have strong and sturdy impact on OI outcomes. Than the
results that drawn after that shown that after the implication of innovative techniques
brought drastic changes in creativity as well as performance level of an organization.
Furthermore, that environment of industry has deliberate and sturdy impact on these
relations (Peiro, 2018). Another study that was conducted by Abu Orabi, in (2016), also
find it out that that TL has positive effect on OP. That leader that act and behave like TL
ought to consider the innovation role is very important for workers, co-workers, sub-
ordinates formulating sand enhancing OP. The study of Schneckenberg, (2015), it has
discovered that international organizations stimulate open creativeness for taking
competitive edge in overall market and over other competitors. Now it is very difficult
for ongoing concerns to become innovative for keeping pace with other same alike firms.
Influential with Idealized impact demonstrates heightened concerns and recognition of
supporter’s desires and make a sagacity of common taking risk (Jung et al, 2008).
Inspiring stimulus bears a support of support and challenges supporters to attain the set
targets, while, Intellectual Stimulation inspires supporters for further creativity and

26
innovation in their skill of problem solving. TL ranks their relations with supporters very
high in priority and display individual deliberation in order to fulfill their requirement of
control, attainment, improved efficiency and individual development. Each dynamic
factor of the TL affects the innovation and creativity in organization.

27
CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

The current chapter describes the methodologies that we used in this study for
analysis. This chapter also gives brief explanation about research approach, research plan,
population, sampling and the item.

3.2 Research Approach

Methodologies, which are mainly used for the research of social sciences, are as
quantitative and qualitative. Scholars identify the appropriate use of these approaches as
according to the nature of problem. Moreover, the judgmental strategy depends upon the
nature of problem as well as on research objectives (Johnson &Gill, 2006).
The first approach is Quantitative approach based upon quantitative characteristic,
designed survey of the happening and the association amongst the situational mechanism.
Whereas, Qualitative methods articulate the qualitative type of the collected data that
couldn’t be presented in numerical form (Saunders, 2009).According to him qualitative
process differs from a finalized set of responses of open ended questions of questionnaire
and also have other aspects of data, for example list of interview that are not properly
follow by respondent and the record of entire. Scholars collect information and the
rationalities through analyzing the obtained information.

The current study is based on the quantity approach. It is important that

Quantitative methods give convenient term among numerical expressions. In current
study, quantitative approaches were used for analyzing data. Different hypotheses were
designed and apply to get results and data was taken from faculty members of secondary
educational institutions.

3.3 Research design

This research analyzes the relationship among TL, OP and OI in secondary

education institutions Abbotabad and Mansehra KPK Pakistan. Survey technique was

28
use to collect data whereas questionnaire as research instrument distributed among staff
of institutions. Each participant filled the questionnaire as according to his or her choice.
In current study, TL influences the performance of employees, which leads to innovative
behavior of employees.

3.4 Theoretical Framework (TF)

TF designed to investigate the links amongst, OP and OI of targeted secondary

education institutions of Hazara Pakistan. In this study TL is independent variable; OP is
dependent variable and OI serve as mediating variable.

Organizational H3

Innovation(OI)

H2
H4
Transformational Organizational
leadership(TL) H1 performance(OP)

Figure 3.1 Theoretical model

3.5 Hypothesis of study

H1: Transformational leadership has positive impact on organizational performance

H2: Transformational leadership has positive impact on organizational innovation
H3: Organizational innovation has positive impact on organizational performance
H4: Organizational innovation is mediating between transformational leadership and
organizational performance

29
3.6 Population

In the view of Zikmund (2003) population refers to the entire faction of people which
come under the consideration of research purpose. It is also referred as the whole set of
mechanism on that the scholar’s require depicting outcome (Coop & Schindler, 2008;
Emerson). Population of the current study is the faculty members of secondary education
institution of Mansehra and Abbotabad Hazara KPK Pakistan. The targeted institutes are
Jinnah school and college, Government higher secondary school for boys, Darr -ul-
Mavvadat public school and college, The City public school, Uswa public high school,
Tameer-i-Wattan public school and college, The Grammar public high school, The Nobel
Islamic high school, and the total population of secondary sections of these institutes
according to the institute’s sources is about 251; therefore, the population for the current
study is also 251.

3.7 Sampling

The course through which we choose essentials from a whole population and
these elements serve as representative of population and the process of choosing sample
is called sampling Cooper & Schindler, 2008). In sampling it isn’t necessary to observe
all population here we need only Samples to acquire related information. It is the division
of the population and we only get data from chosen representatives and subunits of
population. Consequences that we draw from samples are more comprehensive whole
population. 154 employees’ selected as a sample size through convenient sampling by
using Yamane’s simplified formula for calculating sample size.

3.8 Questionnaire Design

For the current research, the objective of the measuring mechanism was to collect
data related to the variables and check their link presented in the TF of the current
research. The purpose of this study is to observe the affect of TL on OP and OI in
secondary education institution Hazara, Pakistan.

The assessing instruments for this study were taken from the past study. The
independent variables of the study are TL, OI was mediating and OP was dependent

30
variable. In order to the compute variables of study, an instrument was adapted and
modified according to the study context. Questionnaire was divided into two parts the
questionnaire, section ‘A ‘and section ‘B’. Section A consists upon 5 statements having
the information related to the demographics of respondents. While, section ‘B’ consist of
28 statements related to TL organizational innovation and organizational performance.
From section ‘B’ first 10 statements are about the transformational leadership, then 9
statements about OP, and then 9 statements about the OP.

Questionnaire was divided into two sections of questionnaire as demographic

section and variables item section, as shown in table 3.1.

Table 3.1 Demographics

Section Factors Number of items

A Gender 1
Age 1
Education 1
Experience 1
Income 1
Organization 1
B Transformational leadership 10
Organizational performance 9
Organizational innovation 9

Section ‘A’ in the questionnaire demanded information related to the

demographics of respondents and their working organization. This section contains the
information on employee’s gender, their age, education, experience and income, of
respondent. A 5- point Likert scale was used to analyze data which characterized as 1 =
strongly disagree (SD) and 5 =strongly agree (SA).the name of 5-likert scale is kept on its
developer name Rensis Likert, Malhorta, (2002).

31
3.9 Data Collection

The data related with the TL, OP and OI is collected through questionnaire that
was adapted from the previous studies. TL is calculated through scale developed by
Multifactor Leadership Questionnaire by Avolio et al. (1999). The measures of OP were
adapted from two sources, Financial and non financial performance from Henri (2006)
and Charoenngam (2013), and we change these in the context of this study context. OI
was assessed using the scale developed by (Wang and Ahmed, 2004).
The questionnaire circulated personally to selected organizations. Survey
technique is used to collect data. The fundamental purpose or advantage of survey is to
overview consequences. Different statistical Methods were applied for analysis of
gathered data that might suitable for data assessment and interpretation. Outcome and
ending made on this assessment. For manipulative correlation and regression, this study
used SPSS v 23.

3.10 Conclusion

This chapter was about the research methodologies and techniques, which we
used, in current research to analyze data. We have also discussed about research design
the population, target population, sample, sample size, sampling procedure scale of
measurement.

32
CHAPTER 04

DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

Analysis of data means to check the extent of reliability of data and reliability of
formulated hypothesis by using descriptive statistics, different reliability tests and other
required test. This chapter is related with analysis of data to check the influence of TL on OP
and OI in Secondary Education Institutions of Mansehra, and Abbotabad Hazara region
selected to accomplish this research. Data has collected from the faculty staff of
mentioned secondary schools and SPSS v. 23 used for analysis of study.

4.2 Analysis of demographic variables

This part of analysis based upon outcome of demographics of the variables i.e.
gender, age, education, experience..Data and outcome of the analysis displayed in the
form of tables and graphs.

4.2.1 Gender

For gender in demographic, ‘1’ for male and 2 for female, Gender of the
respondents shown in “4.2.1” analysis results show that male respondent are 93 and 61
are females respondents which covers 52.8% and 34.7% respectively for total of 154 .

33
 Table 4.1 Gender

Cumulative
Frequency Percent Valid Percent Percent
Male 93 52.8 60.4 60.4
Female 61 34.7 39.6 100.0
Total 154 87.5 100.0

Missing System 22 12.5

Total 176 100.0

Figure 4.2.1

4.2.2 Age

Table 4.2 display the results of age percent result of analysis evident that 7 respondents
age is between 20 to 25 (4.5%), 58 respondents age is between 26 to 30 (33%), 64
respondents age is from 31` to 40 (41.6%), 16 respondent having age from 41 to 50 to
(10.4%), 6 respondent having the age of 51 to 60(3.9), and respondent having the age
above 60 (1.9) among154 respondents

34
Table 4.2Age

Cumulative
Frequency Percent Valid Percent Percent
20-25 7 4.0 4.5 4.5
26-30 58 33.0 37.7 42.2
31-40 64 36.4 41.6 83.8
41-50 16 9.1 10.4 94.2
51-60 6 3.4 3.9 98.1
Above 60 3 1.7 1.9 100.0
Total 154 87.5 100.0

Missing System 22 12.5

Total 176 100.0

Figure 4.2.2

35
4.2.3 Education

Brief information about education shown in table “4.3”and the analysis indicated
that respondent having the Bachelor degree 47(30.5%), respondent having the Masters
degree 98(63.6%), respondent having the degree of M Phil and above are 9(5.1%).

Table 4.2.3Education
Cumulative
Frequency Percent Valid Percent Percent
Bachelor 47 26.7 30.5 30.5
Master 98 55.7 63.6 94.2
M.phill and above 9 5.1 5.8 100.0
Total 154 87.5 100.0
Missing System 22 12.5
Total 176 100.0

Figure 4.2.3

36
4.2.4 Experience

Experience of the respondents as shown in Fig “4.4”and the analysis indicated that
the respondent having the experience of 1-3 years are 60(39.9%),and the respondent
having the experience of 3-7 years are 65(42.2%),and the employees having the
experience of Above 7 years are 29(18.8%).
Table 4.4.Experience
Cumulative
Frequency Percent Valid Percent Percent
1-3 years 60 34.1 39.0 39.0
3-7years 65 36.9 42.2 81.2
Above 7 years 29 16.5 18.8 100.0
Total 154 87.5 100.0
Missing System 22 12.5
Total 176 100.0

Figure 4.2.4

37
4.2.5 Income
Income of the respondent represented in thousands and range from 15 to 20, 20 to
30,30 to 40,40 to 50, and above 50 and analysis indicated that 53(34.4%), 34(22.1%),
41(22.1%), 20(13.0%) and 5(3.2%) respectively.
Table 4.5 Income
Cumulative
Frequency Percent Valid Percent Percent
0 1 .6 .6 .6
15000-20000 53 30.1 34.4 35.1
20000-30000 34 19.3 22.1 57.1
30000-40000 41 23.3 26.6 83.8
40000-50000 20 11.4 13.0 96.8
Above 50000 5 2.8 3.2 100.0
Total 154 87.5 100.0

Total 176 100.0

Figure 4.2.5

38
4.3 Reliability Test (RT)

RT measures the extent of survey items and data reliability and validity. It also
determines the level of error for obtaining consistent and accurate results. For
computation of Cranach’s Alpha different reliability tests were apply which is an index
that shows the internal reliability of variables. It is considered as reliable if Cranach’s
Alpha is less than .06 then it shows the inconsistency of data, if Cranach’s Alpha is 0.6 to
0.07 the data would be consider moderating and if Cranach’s Alpha is within 0.07 and
0.08 than this consider the consistency and reliability of data, if Cranach’s Alpha value is
more than 0.8, this research will consider very stable and reliable, Cranach’s Alpha by
Hair, J.F, Babin, (2003).

Table 4.6 Cranach’s Alpha

Cranach’s Alpha No of Items
.800 28

Table 4.7 Reliability of variables

S. no Variables Items Cranach’s alpha

1 TL 10 .708

2 OP 9 .703

3 OI 9 .702

In this portion we analyzed how much questionnaire is consistent and reliable.

Overall questions are 28. And 28 items reliability is .800 which means highly reliable.
‘R’is also analyze individually on 5 items scale. The reliability of transformational

39
leadership is .708, organizational performance is .703 and organizational innovation is
.702, for each which means that it is reliable.

4.4 Descriptive Analysis (DA)

DA is use to signify the essential characteristics of the data. Generally, scholars

use frequency analysis to examine the result and identify the quantity of sort of each
question. Descriptive analysis enables researcher to explain and identify the features of
respondents. In the section B the data and the central tendencies of questions are
measured through mean, median, mode and standard deviation. These values of mean,
median, mode have an effect on the skewness distribution of the collected data.
Descriptive statistics analysis was practiced to check mean and standard deviation
of the variables. The mean of is Transformational leadership 3.6526, Organizational
performance is 4.1396, and Organizational innovation 3.91921respectively. The std.
deviation of variables is .44972, 36991 and .45009 respectively.

Table 4.8 Descriptive Statistics

N Min Max Mean Std. Deviation
TL 154 2.60 4.70 3.6526 .44972
OP 154 2.88 5.00 4.1396 .36991
OI 154 3.00 5.00 3.9192 .45009

4.5 Inferential Analysis (IA)

Inferential analysis is an essential constituent to check the developed hypotheses.

This is also important to depict results concerning to big population. In order to conduct
the analysis we use SPSS version 23.However following types of inferential analysis we
practiced while using SPSS mentioned version.

40
 a. Pearson Correlation Analysis (PCA)
b. Regression Analysis (RA)

Pearson’s Correlation Coefficient displays direction as well as strength of relation

among variables. In the view of Zikmund (2003), the Pearson's Correlation Coefficient
analysis is computation of variables and their co-variation statistically and important
relationship among different variables.

In this study PCA practiced to see the connection among variables or to realize the
variables are associated with each other or not. Analysis’s result shows significance and
positivity .Table 4.9 indicates variables and their correlation. And regression analysis
indicates relation among all dependent and independent used here. In the current study
regression is used to verify the link between OP and. This also used to check the value of
R-square that tells variation of OP to TL.

In this study Pearson analysis practiced to see the connection among variables or
to realize the variables are associated with each other or not. The outcome of analysis
exposes that the values of variable are positive and significant. Variables and their
correlation are shown in table 4.5.And regression analysis shows the relation between all
dependent and independent variables used in study. In the current study regression is used
to check the relation between dependent variable organizational performance and
independent variable transformational leadership. This also used to check the value of R-
square that tells variance of dependent variable to independent variable.
Table 4.9 Pearson’s Correlation Coefficient

TL OP OI
TL Pearson 1 .437 .263
Correlation .000 .001
Sig. N 154 154 154
OP Pearson .437 1 .519
Correlation .000 .000
Sig. N 154 154 154

41
OI Pearson .263 .519 1
Correlation .001 .000
Sig. 154 154 154
N

*. Correlation is significant at the 0.01 level (2-tailed).

Here PCA tells the relation among two variables. Its value must be between -1 and
1, where value amid: -0.3 and 0.3 referred as weak correlation, -0.6 and 0.6 means
preferable or medium correlation, above -.6 and 0.6 means strong correlation.

Table 4.9 Pearson “r” correlation value (r=.437**) shows that TL significantly
related with OP. The value (r=.263**) shows that TL significantly and positively related
to OI The

Value (r=.519** also shows that OP and OI are positively and significantly related
with one another.

4.6 Regression Analysis

RA uses to finds the relation among dependent variable and independent

variables. RA is computed to find the relation among given variables.

Table 4.10 Regression analysis

Model R R Sq Adjusted R Sq Std. Error

1 .605a .366 .358 .29642

a. Predictors: (Constant), OI, TL

Here, ‘R sq’ value tells us that we are explaining the 36.6% variance in the OP to
TL and the standard error of estimate is .29642.

42
Table 4.11 ANOVAa
Model Sum of Sq Df Mean Sq F Sig.
1 Regression 7.669 2 3.834 43.639
Residual 13.267 151 .088
Total 20.936 153

Table 4.11 shows the value Anova test in RA, the value ‘Df’ is 2 and the sig value
is .000 which is less than 0.05.it means our Anova test value is also significant

Table 4.12 Coefficients of regression

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) 1.772 .255 6.946 .000
TL .265 .055 .323 4.803 .000
OI .357 .055 .434 6.466 .000

a. Dep: OP
b. Predictors: OI, TL
OP=Organizational Performance
TL=Transformational Leadership
OI=organizational Innovation
Table 4.12 displays that Standardized Coefficients value of B=.323 and B=.434
showing that 1% change in TL leads 32.3 percent change in OP and 1% change in OI
leads to 43.4 percent change in OP.

43
 4.9 Multicolinarity Test

Table 4 .13 Model Summary

Change Statistics

Mod Adjusted R RSq F Sig.

el R R Sq Sq Std.Error Change Change df1 df2 Change

1 .605a .366 .358 .29642 .366 43.639 2 151 .000

Dependent: OP
Predictors: OI, TL

Table 4.14 ANOVAa

Model Sum of Sq Df Mean Square F Sig.

1 Regression 7.669 2 3.834 43.639 .000b

Residual 13.267 151 .088

Total 20.936 153

Dependent: OP
Predictors: OI, TL

44
Table 4.15 Collinearity Coefficient

Model Tolerance VIF

1 TL .931 1.074
OI .931 1.074

Multi co linearity occurs when independent variables relate to each other. The
value of ‘tolerance’ must be above .3, while the value of ‘VIF’ must be under 3 it means
that it is most preferable, and if the value of ‘VIF’ is between 3 and 5 it means that is
reliable, and if ‘VIF’ is between 5 and 10 it means that there is a little issue among the
independent variables and above 10 means that there is definitely an issue between
independent variables. So our value of ‘Tolerance’ is .931 which is more than .3 and the
value of VIF 1.074

4.10 Mediation analysis

The process developed by F.Henery. This process used to test the interaction
between two moderators in order to check the mediation of variables by using model 04.

Table 4.16 Model Summary

R-sq F P
.0693 11.3237 .0010

Table 4.17 Model 1

Coeff T P LLCI ULCI
Constant 2.9566 10.2594 .0000 2.3873 3.5260

TL .2635 3.3651 .0010 .1088 .4182

45
Table 4.18 Model Summary
Rsq F P

.3663 43.6393 .0000

Table 4.19 Model 2

Coeff T P LLCI ULCI
1.7721 6.9463 .0000 1.2680 2.2761
Constant

OI .3568 6.4657 .0000 .2478 .4659

TL .2653 4.8030 .0000 .1562 .3744

Table 4.20 Direct effect (DE) of X on Y

Effect T P LLCI ULCI
.2653 4.8030 .0000 .1562 .3744

The DE of OI on TL and OP is .2653‘t’ value is 4.8030 and value of ‘p’ is

.0000 which is less than .05 and it means significance of relation between these variables

Table 4.21 Indirect effect (IE) of X on Y

Effect LLCI ULCI
OI .0940 .358 .1641

The IE effect of OI on TL and OP is 0.940. Both the values of LLCI and ULCI
are positive and “0”is not falling in both of these and it means OI partially mediates
between TL and OP.

46
4.11 Heteroskedasticity Test

This test used to check the normal distribution of sample size that we analyzed in
present study Breusch-Pagan and Koenker test is a test used with assumption of normal
distribution to measure large sample size.
Table 4.22 Heteroscedasticity

Sig
LM
BP 1.660 .198
Koenker 1.323 250

If sig value is below the .05, then it rejects the null hypothesis. Here Breusch-
Pagan (BP) significant value is .198 which is greater than 0.05 and Koenker sig value is
.250 which is also greater than 0.05. So heteroscedasticity is not present. It means our
data is normally distributed.

4.14 Hypotheses Testing

Testing hypothesis purpose is to identify the TF that indicates the relationship

among different variables that used in study in other words it tells the relations between
dependent, independent and moderating, mediating variable. Linear regression analysis
(LRA) used to test the hypothesis. The inde-variable (TL) of this study is positively
related with dependent (OP) and with mediating variable (OI). And OI which this study
took as mediator absolutely mediates between transformational leadership which is inde-
variables and OP which is depe-variable of this study. This study used SPSS 23 for
regression analysis in order to test hypothesis of this study. Through this analysis it’s
proved that TL directly and positively affects the OP and innovation

47
H1: TL has positive impact on OP
The table 4.9 indicates the positive relationship between TL and OP, as the value of
r=.437** which shows that TL has positive impact on OP. In this way with H1 has
approved.
H2: TL has positive influence on OI
The table 4.9 shows the positive link among TL and OI. There is a weak positive
link among TL and OI as the value of r=.263** which shows that TL has positive impact
on OI. In this way with H2 has approved.
H3: OI has a positive effect on OP
The table 4.9 indicates the positive link among OI and OP. There is a solid
positive relation between OI and OP as the value of r=.519** so from the analysis it is
proved that H3 is accepted.

H4: OI has mediating effect between TL and OP.

The table 4.20 and 4.21 show that there is a mediating impact between TL and OP
as the direct shows LLCI value is .1562 and ULCI value is .3744 whereas indirect effect
of LLCI value is .0358 and ULCI is .1641 that means its highly mediates between
dependent and independent variables
Table 4.23 Summary of hypotheses testing

Hypothesis Hypothesis Statement Results

No
1 Transformational leadership has positive impact on Accepted
organizational performance
2 Transformational leadership has positive impact on Accepted
organizational innovation
3 Organizational innovation has positive effect on organizational Accepted
performance.
4 Organizational innovation mediating between transformational Accepted
leadership and organizational innovation

48
4.16 Conclusion

This chapter was about the analysis of data. It indicated the result of analysis that
we have practiced to check reliability, correlation, regression of variables. Data analysis
identified the positive relationship between variables. We have also practiced the
assumption for regression as normality test, multcoilinear test, hetrocadicity test which
show that our data is normal with no Multicolinarity and also hetrocadicity was not
present in our data. In the last section of chapter, we have practiced the mediation
analysis by using Hayes process that shown that OI in our study acted as mediator.
Hypotheses are practiced and verified on the basis of analysis of gathered data; we use
quantitative research method for analysis.
For data analysis, SPSS v. 23 was used. Essential data was gathered by using
survey approach and inferential statistical tools i.e. Pearson’s correlation and regression
were applied for analyzing data. Results of the study displayed in the form of tables and
graphs. First section of the chapter displayed the result of demographics variables, 2nd
section gives the detail of relation among dep-and indep- variables and the 3rd section
gives the detail of mediating variables and assumption, hypothesis testing also on
included in this chapter

49
Chapter 5

Conclusion, Findings and Recommendation

5.1 Introduction

This chapter gives outlines of the present research and as well its key
consequences. Current chapter also presents some useful suggestion that ought to adopt
by educational institutions to increase their employees’ performance as well as advance
their innovative behavior. This section anticipates a number of recommendations for the
proceeding studies. Findings, recommendations and limitations for future research will
also be a part in current chapter.

5.2 Findings of the study

Table 4.9 and 4.12 displayed the person correlation and beta coefficient. Because
of positive values of dependent, independent variables and positive value of beta
coefficient displayed the strong and positive relationship among variables. Table 4.16 to
4.20 displayed the result of mediation and explained partially mediation of organizational
innovation between transformational leadership and organizational performance. So our
data analysis has indicated that the TF which is designed for the current research is
strongly significant and each variable add significantly in the designed model. All four
hypotheses have been practiced and shown direct relationship between dependent,
independent as well mediating variable.

This study found all claimed hypothesis support the analysis.

i. The present study has found that TL and OP and OI are significantly and
positively related with each other. Therefore, this is an advantage for educational
institutes to put their efforts to improve their environment of work of institute
which leads to enhance, performance and innovative behavior of employees.

50
ii. It has been found that TL has the strongest correlation with OP whereas OP has
been found to correlate with transformational leadership and OI sharing mediatory
(Peiro, 2018).
iii. It is also found that RA analysis recommended the developed hypothesis
significantly approved. In the context of study, it is articulated that there is a
significant impact of TL on OP through OI in secondary educational institutions.
Another finding is that leaders have direct and constructive effect on performance
of employees.
iv. It is recommended that the educational staff with high performance in pressure by
knowing their responsibilities Therefore, these remarkably added employees in our
assessment that are more specific and have ability to participate in innovative
tasks.
v. Result indicated that TL has concrete influence on employees’ innovative
behavior. These outcome shows that employees of institutes that divulge high
levels of performance tend to more innovative.
vi. Employees who demonstrates high performance they add much in existing
knowledge, ideas and leanings in organization; our outcome propose that
individuals with high performance tend to more innovative .
vii. After getting the positive outcomes of the study it is obvious that institutes staff
see their knowledge and performance is beneficial for themselves as well as for
their colleagues and in this way they facilitate them in bringing innovation in their
respective aspects and departments. So in this way they can get the competitive
edge while staying in organization.
viii. It is understood the significance of innovation in today’s competitive and insistent
world, this research provides a comprehensive dimensions of TL, OI and OP. Our
outcomes suggest that leaders and management both ought to consider the ways
and process of enhancing the level of performance and creativity for enabling
innovative behavior of employees.

51
5.3 Conclusion

The current study adds to the emerging body of literature that seeks to comprehend
profoundly the transformational leadership concepts and its core components,
performance’s perspectives and different dimensions of OI. In the broader context there
are not so many researches on positive impact of TL on OP and OI. This study has
provided useful information about the transformational leadership, organizational
performance, and organizational innovation in secondary education institution, and also
put forward few recommendations and a few suggestions for proceeding research

5.4 Implications of study

After getting findings of the study, it is now easy for us to recommend some
implication for proceeding researchers. These suggestions enable future researchers to
advance their process of research with other variables.
i. Most of the organizations believe different sorts of reward for motivation of
employees that leads to high performance but some organizations well aware
about the significance of inspirational motivation, idealizing, stimulation of
intellect and individualized consideration which lead to creativity and innovation
in organization. However, the current study will be profitable and valuable device
for educational institutes and other organization for shaping the creativity in
organization. By keeping in view leaders and management determine that which
sort of behaviors (stimulation, Inspiration, consideration) would be profitable for
innovation.
ii. This study analyzed different variables (i.e. TL, OP and OI) are positively
interrelated. However, leaders in an organization ought to understand the
importance of guidance and feedback in order to advance the knowledge of
workers towards innovation.
iii. By the analysis of different variables, we notified that if organization consider
organizational learning process on consistent basis it would advance the creative
and innovative environment in organization.

52
 iv. Innovation in organization is unrestricted behavior and employees not usually
bound to follow and execute this. In the respect of this point, management of
organization can design a work place, which suits to employee’s innovative
behavior as they can give authority to workers to do work as according to their
choice. Educational employees with their high performance persuaded to
participate in innovative tasks. There should be special consideration given to the
employees who show the high level of performance in organization but unluckily
these workers are averse to do innovative activities. Management of organization
can discuss these problems through communication with organizational staff
make them to understand organizational objective through counseling and try to
change their behavior towards innovation that they consider as barrier in their
hard working.

5.5 Limitations of study

We have observed some Limitation in this study. Future researcher must consider
these limitations while conducting same study.

i. The current study is limited to a small geographical area that can physically visit
for data collection. This way of data collection has many benefits such as more
chances of high response rate and good quality of data is expected, it indicated
that the results of the study will not be directly apply on large population.
ii. For this study, the second limit is that in the perspective of Pakistan, literature
related to innovation and performance is not sufficient. In this way, scholars find
difficult to avail the literature related to particular variables and they mostly
depend on literature that developed and designed in developed countries of world.
iii. Another limit is that the current research focused on fewer educational institutes
of Hazara Pakistan. Only focusing on educational institutions the results of this
study might not be useful for others organizations or industries in Pakistan.
iv. Fourth limitation is that this study just considers the role on innovation and
performance that might not sufficient to promote innovative behavior of workers.
However, management should consider other influencing factors of innovation
and performance as organizational culture, organizational learning, etc
53
 v. Besides all these, limitation this study also gives valuable understanding of
relationships between the measured variables and these make important assistant
and contribution in existing literature.

5.6 Future Recommendations

This study represents few managerial as well as some general recommendations

that ought to understand by researcher in future. Identification of these recommendations
definitely provides a course for research in future.

5.6.1 Managerial Recommendations

i. Future researchers ought to identify the obstacles to OI or strengthen the factors

of OI, while proceeding to shape environment of learning and sharing to establish
a realistic incentive mechanism.

ii. This study proposes that in order to sustain an efficient organizational learning
and innovative environment, leaders ought to motivate their staff for immediate
response and initiative

iii. Management and leadership both need to take innovativeness as a basic value of
an organization; only then, the results of OI can achieved.

iv. Furthermore, institutes leaders can execute dynamic leadership style to design OI,
in a way institute staff have the ability of consistent learning, innovativeness and
growth by accumulating unique/ inimitable knowledge that could not imitated by
other institutes.

5.6.2 General recommendations

i. To check out the link between TL and OP this study did not include the
moderating variable. There should try to include moderators in future research in
order to check the relationship between TL and OP.
ii. The result is based on the sample collected from secondary education institutions
Hazara kpk Pakistan. This study recommends that future studies should attempt

54
 the suggested test the recommended structure in other sector of from the same
region.
iii. A larger sample size should be considered for proceeding research, as sample size
and other statistical tools and methods can be applied to future research.

55
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