Intense technological advancements and market liberalization have intensified competition in the telecommunication industry, challenging established operators to innovate continuously. This study investigates how transformational leadership drives creativity and innovation and, consequently, organizational performance, focusing on its four dimensions: inspirational motivation, idealized influence, individualized consideration, and intellectual stimulation. Data were collected from 314 executives and analyzed using partial least squares structural equation modeling (PLS-SEM). Results indicate that inspirational motivation, individualized consideration, and intellectual stimulation significantly enhance creativity and innovation, whereas idealized influence shows no direct effect. Creativity and innovation further mediate the relationships of inspirational motivation and individualized consideration with organizational performance, highlighting their critical role in translating leadership behaviors into tangible performance outcomes. The findings advance theoretical understanding by clarifying the pathways through which transformational leadership fosters innovation and creative engagement. Practically, the study provides actionable insights for organizational leaders to cultivate a culture of creativity and innovation to sustain competitive advantage, and informs policymakers and regulators in supporting organizational performance and sectoral development.
Piaralal et al. (Wed,) studied this question.
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