Effect of Transformational Leadership on Organisational Performance: The Mediating Role of Open Innovation and Organisational Learning

Abstract

Transformational leadership is an important factor affecting organisational performance. Many studies have shown that transformational leadership has positive and significant influence on organisational performance. Based on a literature review and previous work, this study aims to investigate the impact of transformational leadership on organisational performance and to examine whether organisational learning and open innovation is a mediator between their relationships. A quantitative analysis is performed via a questionnaire. The data analysis was conducted thanks to the structural equation modelling method. The research sample consisted of 202 respondents from Tunisian enterprises chosen through non-probabilistic convenience sampling. The findings of this study provide evidence that transformational leadership, organisational learning and open innovation have significant positive relationship influence on organisational performance. The research also demonstrates that there is a significant effect on the role of mediation in organisational learning and open innovation on the relationship between transformational leadership and organisational performance. The study suggests that if organisation principals use the strategies of transformational leadership and organisational learning at the same time, organisational learning was highly effective to achieve open innovation and subsequently a performance within the organisation.