Transformational leadership and innovation in an R&D organization experiencing major change

Purpose – The purpose of this paper is to add to the understanding of how transformational leaders influence R&D team outcomes around being more innovative. In particular, the study aims to focus on the role of group identification in mediating innovative outcomes. Design/methodology/approach – In total, 104 participants in a large Australian R&D organization were surveyed twice during a 12 month period of major restructuring and change. These matched respondents came from 29 different teams. Findings – Results revealed that group identification and perceived support for creativity exerted equal independent effects in fully mediating the relationship between transformational leadership and team innovation. Research limitations/implications – The potential for leadership to influence innovation through identification raises interesting alternative possibilities. Future research may generate new insights by investigating alternative samples, leadership styles or using qualitative methods. Practical implications – Findings point to how a more transformational style of leadership influences team climate and identification, and in turn innovation in the context of scientific R&D teams. Such styles do produce better outcomes, both for the organization around more innovative products and processes, but also for team members who engage in more creative team environments. Originality/value – These findings add to the conceptual understanding of processes through which transformational styles of leadership promote innovation, and highlight the benefits gained by promoting more transformational styles of leadership to generate more innovative outcomes from teams and employees.