The Impact of Leadership Styles On Organizational Innovation Directly And Indirectly Through Talent Engagement in Hotel Industry of Twin Cities of Pakistan

Abstract

Employees are the backbone of any organization. Engaged and motivated employees enable the organization to gain the competitive advantage through organizational innovation. The purpose of this study was to examine the impact of leadership styles (transformational leadership and transactional leadership) on organizational innovation through talent engagement (job engagement and organization engagement) among the line managers and managers in twin cities of hotel industry of Pakistan. This study investigated engagement in two dimensions. A total of 291 questionnaires were distributed to managers and line managers, who were working in three-star, four star and five-star hotels located in Rawalpindi and Islamabad. SPSS software was used to test the hypotheses. The findings show a positive and significant relation between transformational and organizational innovation in hotel sector of Pakistan. However, the relation between transactional leadership and organizational innovation was found to be positive and significant but the correlation is not very strong and can be termed as moderate in the hotel sector of Pakistan. Findings of the current study suggested that mediator (talent management) has enhanced the impact of independent variable on dependent variable. Comparing the impact of transformational leadership on organizational innovation, the impact of transactional leadership on organizational innovation is moderately influenced by the mediators of the study. Therefore, the organizational engagement and job engagement is shown to mediate the relationship between transactional leadership and organizational innovation; however, the talent management was shown to mediate the relationship between the transformational leadership and organizational innovation more effectively than the later. The findings of this study are important for the effectiveness of the management in the hotel industry