The Impact of Transformational Leadership on Employee Innovation at Saudi Commercial Banks: The Moderating Role of Organizational Support

Abstract

The study aimed to examine the impact of transformational leadership, specifically its dimensions of ideal influence, inspirational motivation, and employee empowerment, on employee innovation, which includes product innovation, process innovation, and marketing innovation, within Saudi commercial banks. Additionally, the study explored the moderating role of organizational support in this relationship. To achieve the study’s objectives, a descriptive analytical approach was employed. A questionnaire was developed based on the theoretical literature and previous studies relevant to the study’s topic. The study population comprised all employees in Saudi commercial banks, and a stratified random sampling method was used. A total of 381 questionnaires were distributed, and 333 valid responses were retrieved for analysis, representing an 87.4% response rate.

The results indicated that transformational leadership in Saudi commercial banks is at a high level, while employee innovation is at a medium level. Furthermore, organizational support was found to moderate the effect of transformational leadership on employee innovation. The findings also revealed a statistically significant impact of transformational leadership, across its dimensions of ideal influence, inspirational motivation, and employee empowerment, on employee innovation in the areas of product, process, and marketing innovation.

Based on these findings, the study put forward several recommendations. The foremost recommendation is to strengthen the concept of transformational leadership and provide full support for it within Saudi commercial banks due to its positive influence on enhancing employee innovation and achieving excellence. The study also recommends applying the model to other sectors and exploring additional variables to further understand the relationship between transformational leadership and employee innovation, as well as considering factors beyond transformational leadership that may influence employee innovation.