Transformational Leadership Style and Employee Innovative Behaviour in Nigerian Banking Industry

Abstract

This research study investigates the employee innovative behaviour effects of transformational leadership and its dimensions (idealized influence, inspirational motivation, intellectual stimulation, and individual consideration) in the Nigerian banking industry. Data were gathered from 350 full-time employees working in the banking industry in South-West region of Nigeria. Multiple regression analysis was utilized to examine the theoretical hypotheses. The empirical results showed that transformational leadership stimulates employee innovative behaviour. The findings further provide empirical support for the significant role of transformational leadership in improving employee innovative work behaviour. Furthermore, the direct effect of idealized influence and inspirational motivation on employee innovative behaviour is statistically significant at the conventional level whereas intellectual stimulation and individual consideration were found significant at 10% level. Thus, there is need for banking managers to ensure an environment that encourages the subordinates to enhance individualized consideration and intellectual stimulation practices. To identify the needs, desires and motives of employees, transformational managers need to assist subordinates to grow their skills and abilities towards the organizational demands, growth and sustainability.