Transformational Leadership and Innovative Climate: Examining the congruence of leader and follower perceptions

Abstract

Previous research has overlooked the leader-follower relationship as an essential aspect of how leadership can promote innovation. The purpose of this study is to determine how congruent LMX perceptions must be in order to maximize the effects of transformational leadership on the innovative climate. As a result, two models were tested: the first, a leader-perception model examining the effects of an articulated vision, as a key component of transformational leadership, on the innovative climate and the LMX relationship as perceived by the leader; and the second, a follower-perception model examining the relationships among the same three constructs using LMX perceived by followers. This study included 80 matched leaders follower respondents from a Norwegian insurance company. The results of examining the corresponding parameters in the two models revealed that a well-articulated vision has a positive influence on the innovative climate as well as the development of stronger leader member exchange relationships. In addition, the effects of an articulated vision on the LMX relationship were more substantial from the follower's perspective. However, no significant results were found to indicate a mediation effect of LMX on the articulated vision and innovative climate effect. The findings of this study have practical implications for organizational development and leadership training to foster innovative climates in the workplace.