The effects of transformational leadership style with learning and entrepreneurship orientations on organizational innovation performance

Getting an improvement with innovation, businesses may have an advantage in competitive environment to their rivals and achieve better positions. The main challenge for businesses is that realization of innovation is a complex topic and it requires change in the firm. Managers are responsible for guiding his/her employees by showing accomodating leadership style during the course of innovation. Studies on innovation have shown that "transformational leadership" is the style which is more acceptable in creating change toward innovation. With the vision they possess, transformational leader are seen as those who mentor and coach their team, guide and energize them in innovation practice. According to resource based view, if businesses possessed cultural based components which is valuable and difficult to imitate, they would promote cultural competitiveness. Learning and entrepreneurship orientations come forward among cultural based components. When leading to new initiatives businesses may become novel organizations by being entrepreneurial oriented, behaving decisively and taking risks. Being learning oriented, businesses can increase organizational innovation performance as a result of observing new technological paradigms and external environment. This study aims to explain the effect of manager's transformational leadership behaviours on the organizational innovation behaviour through learning and entrepreneurship orientation. Field research comprises a survey with 239 managers and 239 employees from organizations based in Eskisehir, and Technopark İstanbul region. Descriptive, confirmatory factor and reliability analysis are applied to the obtained data by using SPSS 22 Statistical Package Program. In order to explain variable's relations in the model, the structural equation model (SEM) analysis is applied by using LISREL 8.8. The findings has shown that managers' transformational leadership style increases organizational innovation performance through learning and entrepreneurship oriented culture.