Impact of transformational leadership mediated by self-efficacy on employee innovation in the South African local government sector.

Abstract

The study investigated the impact of transformational leadership as a ‘predictor variable’ on employee innovation ‘predicted variable’. The relationship is mediated by self-efficacy. Studying these variables in isolation is helpful but the challenge is posed by limited resources especially when employee innovation has been identified as an imperative to organizational strategy and a desired positive organizational behaviour. Municipalities will know which predictor variable to primarily focus on in order to enhance innovation. In the previous study conducted by the researcher involving leader member exchange (LMX), self-efficacy and employee innovation, the statistical results from the regressions revealed an R square of .20. This showed that LMX and self-efficacy only had a 20% effect on employee innovation. It indicated that 80% of employee innovation is explained by other constructs hence the inclusion of transformational leadership as one of the predictor variables (Msweli, 2015). The study further recommended examining different predictor variables for future research. A random sample of 141 employees from Mandeni Municipality and the City of Umhlathuze was used in this study. A cross-sectional design was adopted. The analysis included the correlation and regression analysis which examined in isolation the relationships of transformational leadership with self-efficacy, self-efficacy with employee innovation, transformational leadership with employee innovation and finally all three constructs combined. Regressions were also used to examine the main relationship model of transformational, employee innovation with self-efficacy as a mediator. The research findings provide leaders in the South African local government sector with an understanding of the relationship of the constructs. They will also contribute to the body of knowledge by furnishing a better insight with regards to the impact of transformational leadership on employee innovation. Primarily, it provides a prototype that clarifies the relationship of transformational leadership, work self-efficacy with employee innovation in the South African local government context.