The Influence of Innovation and Transformational Leadership on Organizational Performance

This paper presents the findings of a study which examined the relationship between innovation, transformational leadership and organizational performance. Further, the study determined the influence of innovation and transformational leadership on organizational performance. Finally the study examined the most important factor that influences organizational performance. Data in the study was collected from a sample of 150 managerial staff in Malaysian logistics companies. The obtained data were analyzed using SPSS Version18. The study found that transformational leadership and innovation were related to organizational performance. Both transformational leadership and innovation were found to be the significant influence to organizational performance. This shows that transformational leadership and innovation have significantly enhanced the organizational performance in Malaysian logistics companies. This study also revealed that charisma aspect of transformational leadership and product or service in innovation emerged as the most important factors that influence performance of organization. Findings, implications and recommendations for future research from this study are discussed.