Effects of transformational leadership on organizational innovation in Ethiopian Electric Utility

Abstract

It is identified that in the past decade, transformational leadership which has become a new paradigm of leadership has become a popular research subject. After the theory is introduced, different writers worked on it in different perspectives. Transformational leadership asserts mobilizing people to the common good through creating a safe place and making integration with ethics, morality and integrity. On the other hand, the relationship between Transformation Leadership and organizational innovation has been studied by different scholars and its positive impacts on innovation have been supported by several empirical evidences. This paper aims to identify the correlation of transformational leadership with organizational innovation at Ethiopian Electric Power Utility and how leaders practices transformational leadership. Data are gatheredfrom the head office Managers & colleagues of EEU through formal interviews and questioners. By applying Nyabwanaga, R., and Ojera sampling techniques a total of 113 employees participated in the study. Qualitative data analysis with the support of interviews and theoretical frameworks has been done. Furthermore, widely quantitatively simple linear regression model were developed through different variables. Results showed that there is a positive correlation between Transformational Leadership and the three dimensions namely individualized considerations, inspirational motivation and intellectual stimulation, in Ethiopian Electric Utility. Thus EEU mainly expected to do on the idealized influence which is not actually practice on the organization, in order to benefit more of the leadership style adopted. Even though transformational change demands both structural and contently, the research finds out that only structural change has done in EEU.