The impact of transformational leadership on employee innovative behaviour in knowledge-intensive business services: Employee learning agility as a mediator
Keywords:
Transformational Leadership, Employee Innovative Behaviour, Employee Learning Agility, Knowledge-Intensive Business Services (KIBS), Structural Equation ModelingAbstract
In the era of knowledge economy, Knowledge-Intensive Business Services (KIBS) play a critical role in driving innovation and organizational competitiveness. This research study investigates the influence of transformational leadership on employee innovative behaviour in Yunnan's KIBS sector, focusing specifically on exploring the mediating role of employee learning agility. A quantitative research design was employed using a structured questionnaire survey administered to 588 employees from representative KIBS enterprises in Yunnan Province. Structural Equation Modeling was conducted to test the proposed hypotheses. The results reveal that transformational leadership has a significant positive direct effect on employee innovative behaviour (β = 0.314, p < 0.001). Moreover, employee learning agility plays significant mediating roles between transformational leadership and employee innovative behaviour (β = 0.154, p < 0.001). These findings offer a new explanatory framework illustrating how transformational leaders foster innovation by enhancing employees’ confidence in their capacity to learn and adapt in uncertain environments. Practically, the findings provide valuable insights for enterprise managers to cultivate innovation-driven organizational cultures by adopting transformational leadership behaviours, strengthening employee training, and developing programs that enhance learning agility.
References
Afsar, B., F. Badir, Y., & Bin Saeed, B. (2014). Transformational leadership and innovative work behavior. Industrial Management & Data Systems, 114(8), 1270-1300. https://doi.org/10.1108/IMDS-05-2014-0152
Al-Mansoori, R. S., & Koç, M. (2019). Transformational leadership, systems, and intrinsic motivation impacts on innovation in higher education institutes: Faculty perspectives in engineering colleges. Sustainability, 11(15), Article 4072. http://doi.org/10.3390/su11154072
AlNuaimi, B. K., Singh, S. K., Ren, S., Budhwar, P., & Vorobyev, D. (2022). Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of Business Research, 145, 636-648. https://doi.org/10.1016/j.jbusres.2022.03.038
Amankwaa, A., Gyensare, M. A., & Susomrith, P. (2019). Transformational leadership with innovative behaviour: Examining multiple mediating paths with PLS-SEM. Leadership & Organization Development Journal, 40(4), 402-420. https://doi.org/10.1108/LODJ-10-2018-0358
Bass, B. M. (1999). Two decades of research and development in transformational leadership. European Journal of Work and Organizational Psychology, 8(1), 9-32. https://doi.org/10.1080/135943299398410
Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of Applied Psychology, 88(2), 207–218. https://doi.org/10.1037/0021-9010.88.2.207
Bednall, T. C., E. Rafferty, A., Shipton, H., Sanders, K., & J. Jackson, C. (2018). Innovative behaviour: How much transformational leadership do you need? British Journal of Management, 29(4), 796-816. https://doi.org/10.1111/1467-8551.12275
Cao, F., & Zhang, H. (2020). Workplace friendship, psychological safety and innovative behavior in China: A moderated-mediation model. Chinese Management Studies, 14(3), 661-676. https://doi.org/10.1108/CMS-09-2019-0334
Chang, C., & Octoyuda, E. (2024). Driving digital transformation: How transformational leadership bridges learning agility and digital technology adoption in MSMEs. Emerging Science Journal, 8(4), 1583-1601. https://doi.org/10.28991/ESJ-2024-08-04-020
Chung, B. (2024). Investigating the relationship between agile leadership and startup organizational performance: Exploring the mediating role of learning agility. Journal of Venture Innovation, 7(1), 59-75. https://doi.org/10.22788/7.1.4
De Meuse, K. P. (2017). Learning agility: Its evolution as a psychological construct and its empirical relationship to leader success. Consulting Psychology Journal, 69(4), 267–295. https://doi.org/10.1037/cpb0000100
Fischer, B., Salles-Filho, S., Zeitoum, C., & Colugnati, F. (2022). Performance drivers in knowledge-intensive entrepreneurial firms: A multidimensional perspective. Journal of Knowledge Management, 26(5), 1342-1367. https://doi.org/10.1108/JKM-03-2021-0264
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. http://www.jstor.org/stable/3151312
Gravett, L. S., & Caldwell, S. A. (2016). Learning agility: The impact on recruitment and retention. Palgrave Macmillan. https://doi.org/10.1057/978-1-137-59965-0
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6th ed.). Pearson Prentice Hall.
Janssen, O. (2000). Job demands, perceptions of effort‐reward fairness and innovative work behaviour. Journal of Occupational and Organizational Psychology, 73(3), 287-302. https://doi.org/10.1348/096317900167038
Jo, Y., & Hong, A. J. (2022). Impact of agile learning on innovative behavior: A moderated mediation model of employee engagement and perceived organizational support. Frontiers in Psychology, 13, Article 900830. https://doi.org/10.3389/fpsyg.2022.900830
Karakoy, D., & Oncer, A. Z. (2024). Leadership style and innovative work behaviour: Is learning agility the key? In M. H. Bilgin, E. Demir, H. Danis, & M. Garcia Goni, (Eds), Eurasian Business and Economics Perspectives 2023, vol 30. Springer. https://doi.org/10.1007/978-3-031-64140-4_4
Khan, M. A., Ismail, F. B., Hussain, A., & Alghazali, B. (2020). The interplay of leadership styles, innovative work behavior, organizational culture, and organizational citizenship behavior. Sage Open, 10(1). https://doi.org/10.1177/2158244019898264
Lombardo, M. M., & Eichinger, R. W. (2000). High potentials as high learners. Human Resource Management, 39(4), 321-329. https://doi.org/10.1002/1099-050X(200024)39:4<321::AID-HRM4>3.0.CO;2-1
Ly, B. (2024). The interplay of digital transformational leadership, organizational agility, and digital transformation. Journal of the Knowledge Economy, 15(1), 4408-4427. https://doi.org/10.1007/s13132-023-01377-8
Mittal, S., & Dhar, R. L. (2015). Transformational leadership and employee creativity: Mediating role of creative self-efficacy and moderating role of knowledge sharing. Management Decision, 53(5), 894-910. https://doi.org/10.1108/MD-07-2014-0464
Muchiri, M. K., McMurray, A. J., Nkhoma, M., & Pham, H. C. (2020). Mapping antecedents of innovative work behavior: A conceptual review. The Journal of Developing Areas, 54(4). https://dx.doi.org/10.1353/jda.2020.0047
Najafi-Tavani, S., Najafi-Tavani, Z., Naudé, P., Oghazi, P., & Zeynaloo, E. (2018). How collaborative innovation networks affect new product performance: Product innovation capability, process innovation capability, and absorptive capacity. Industrial Marketing Management, 73, 193-205. https://doi.org/10.1016/j.indmarman.2018.02.009
Nasir, J., Ibrahim, R. M., Sarwar, M. A., Sarwar, B., Al-Rahmi, W. M., Alturise, F., Samed Al-Adwan, A., & Uddin, M. (2022). The effects of transformational leadership, organizational innovation, work stressors, and creativity on employee performance in SMEs. Frontiers in Psychology, 13, Article 772104. https://doi.org/10.3389/fpsyg.2022.772104
Nayak, L., & Malik, P. (2024). Two decades of learning agility and an integrated framework: A review of literature and bibliometric analysis. International Journal of Organizational Analysis, 32(10), 2549-2571. https://doi.org/10.1108/IJOA-08-2023-3932
Putri, Y., & Suharti, L. (2021). Learning agility and innovative behavior: The roles of learning goal orientation and learning organization. International Journal of Economics, Business and Accounting Research, 5(3), 2759–2770. https://jurnal.stie-aas.ac.id/index.php/IJEBAR/article/view/3017
Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of Management Journal, 37(3), 580-607. https://www.jstor.org/stable/256701
Sofyan, A. R. D., & Kristiana, H. (2023). The mediating role of learning agility on the relationship between transformational leadership and innovative work behavior. In Proceeding The 2nd International Seminar of Multicultural Psychology (pp. 181-190). http://repository.unika.ac.id/id/eprint/34813
Song, Q., Yu, D., & Peng, X. (2024). Knowledge-intensive business services and new venture growth: A sub-national analysis based on complexity theory. Economic Modelling, 141, Article 106884. https://doi.org/10.1016/j.econmod.2024.106884
Tipu, S. A. A., Ryan, J. C., & Fantazy, K. A. (2012). Transformational leadership in Pakistan: An examination of the relationship of transformational leadership to organizational culture and innovation propensity. Journal of Management & Organization, 18(4), 461-480. https://doi.org/10.5172/jmo.2012.18.4.461
Tripathi, A., Srivastava, R., & Sankaran, R. (2020). Role of learning agility and learning culture on turnover intention: An empirical study. Industrial and Commercial Training, 52(2), 105-120. https://doi.org/10.1108/ICT-11-2019-0099
Wang, X.-H. (F.), & Howell, J. M. (2010). Exploring the dual-level effects of transformational leadership on followers. Journal of Applied Psychology, 95(6), 1134–1144. https://doi.org/10.1037/a0020754
Xerri, M. J., & Brunetto, Y. (2013). Fostering innovative behaviour: The importance of employee commitment and organisational citizenship behaviour. The International Journal of Human Resource Management, 24(16), 3163-3177. https://doi.org/10.1080/09585192.2013.775033
Zhou, X., Min, M., & Zhang, Z. (2022). Research on the social capital, knowledge quality and product innovation performance of knowledge-intensive firms in China. Frontiers in Psychology, 13, Article 946062. https://doi.org/10.3389/fpsyg.2022.946062
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Dhurakij Pundit University

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Content and information of the article published at Suthiparithat Journal are based on the sole opinions and responsibility of author(s) only. Neither the editorial board involve in......
