The Impact of Transformational Leadership on Organizational Innovative Performance: A Mediating Role of Culture and strategy innivation

The study purpose is to investigate the impact of transformational leadership on innovative performance with mediating roles of culture and strategy innovation.

The present study is applied research and in terms of its nature and method is descriptive-correlational. The statistical population includes 316 employees of Cooperative Development Bank (central offices of Tehran branches). The sample size was 173 based on Cochran's formula and were selected by stratified random sampling method. The Bass and Avolio (1994) questionnaire was used to assess transformational leadership, and the Sattayaraksa and Bonit (2018) questionnaire to assess innovative performance, culture and innovation strategy. The validity of questionnaires was confirmed by content method and their reliability was confirmed by Cronbach's alpha test. Structural equation modeling has been used to analyze the data.

The research findings showed that transformational leadership has a direct and significant effect on innovation culture (with 0.58 coefficient), innovation strategy (with 0.53 coefficient) and innovative performance (with 0.64 coefficient). Also, the indirect impact of transformational leadership through innovation culture (with 0.298 coefficient) and innovation strategy (with 0.360 coefficient) on innovative performance and the direct impact of culture and innovation strategy on innovative performance (with coefficients 0.47, and 0.68) were also confirmed.

Due to the increasing changes in the banking industry, promoting the innovative performance of banks by applying a transformational leadership style and strengthening the culture of innovation and implementing innovation strategies can be a good way to adapt to these changes and respond to diverse customer requests.