How Transformational Leadership Affects Firm Innovation Performance - A Perspective Based on Environmental Dynamism and Business Model Innovation
Bo Dong
Abstract
This study aims to examine the impact of transformational leadership on firms' innovation performance and to analyze the relationship between environmental dynamism and business model innovation. The context of the study is that firms need to innovate to maintain a competitive advantage in the face of changing external environments and competitive pressures, and transformational leadership is considered to have an essential role in driving corporate innovation. However, existing literature has yet to consider the factors of environmental dynamism and business model innovation when exploring the impact of transformational leadership on innovation performance. This study uses Structural Equation Modeling (SEM) to analyze the data to address this research gap. Data were obtained from 40 manufacturing industries in China through a questionnaire survey of over 150 corporate management and technical staff. The findings indicate that transformational leadership positively impacts firm innovation performance and that environmental dynamics and business model innovation play a mediating role. The significance of this study is that it fills the research gap in the existing literature on the relationship between transformational leadership and corporate innovation and proposes environmental dynamism and business model innovation as mediating variables, providing a new research perspective on corporate innovation. At the same time, the research methodology uses Structural Equation Modeling to effectively analyze the complex relationship between transformational leadership, environmental dynamism, and business model innovation, which provides some theoretical guidance for business leaders.