Transformational leadership and work unit innovation: A dyadic two-wave investigation

Mobilising arguments from conservation of resources theory and employing time-lagged, multi-source data, we propose and test a model connecting unit level transformational leadership (TFL) to work unit innovation performance. We theorise that unit level TFL, comprising idealised influence and inspirational motivation, will impact unit innovation performance through a double mediation mechanism involving unit knowledge sharing climate and internal to unit knowledge sharing. Dyadic data from 124 unit leaders and 644 employees collected at two time points broadly support our predicted pathways. In generating insights into the mechanisms linking unit level TFL to work unit innovation performance we highlight the importance of ambient-level TFL behaviours in explaining innovation performance and we answer calls in the literature for research designs which can assist in unearthing indirect relationships in the TFL-innovation nexus.