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The Effect of Transformational Leadership and Organizational Culture Towards Employees’ Innovative Behaviour and Performance

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  • Mochamad Rizki
  • Ryani Dhyan Parashakti
  • Lisnatiawati Saragih

Abstract

This study aims to analyse the effect of Transformational Leadership and Organizational Culture towards Innovative Behaviour and Employee Performance in PT Bank Danamon Indonesia. Data was collected from a sample of 100 employees of PT Bank Danamon Indonesia. We analysed the questionnaire result using structural equation modelling (SEM). The conclusions are that transformational leadership has a significant effect on organization culture; transformational leadership does not influence innovation behaviour. However, a company’s culture is significantly affected by innovation behaviour and innovation behaviour also has a significant effect on employee performance in PT Bank Danamon Indonesia. Transformational leadership is concerned with shared interests among employees by explaining the importance of the company's goals so that employees are willing to put aside their personal interests and work for the common good.

Suggested Citation

  • Mochamad Rizki & Ryani Dhyan Parashakti & Lisnatiawati Saragih, 2019. "The Effect of Transformational Leadership and Organizational Culture Towards Employees’ Innovative Behaviour and Performance," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 227-239.
    • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:1:p:227-239
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    References listed on IDEAS

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    1. Jeroen de Jong & Deanne Den Hartog, 2008. "Innovative Work Behaviour: Measurement and Validation," Scales Research Reports H200820, EIM Business and Policy Research.
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    Cited by:

    1. Jorge Imer Gaviria-Rivera & Esteban López-Zapata, 2019. "Transformational Leadership, Organizational Climate and Job Satisfaction in Work Teams," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 68-82.
    2. Irina I. Frolova & Vladimir V. Nosov & Nadezhda B. Zavyalova & Aleksei E. Dorofeev & Tatiana M. Vorozheykina & Lyudmila I. Petrova, 2020. "Labor opportunism as a blocking factor for the innovative development of industrial enterprises," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2228-2242, March.

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