Abstract:
This study analyzes the impact of transformational leadership on organizational
performance through the dynamic capabilities of mediating variables such as
organizational knowledge, learning and innovation. The present study analyzes these
impacts empirically, basing the analysis on a sample size of 300 employees working in
the service sectors in twin cities of Pakistan i.e. Islamabad and Rawalpindi. The service
sectors include telecom, banking and health sectors. The empirical findings partially
support that (1) organizational innovation has a mediating impact in relationship between
transformational leadership and organizational performance; (2) organizational
performance is mediated positively by organizational innovation; and (3) organizational
knowledge has a positive relationship with organizational learning.
