Impact On Organizational Performance Top Transformational Leadership

CEO is the upper manager of a company and what he said or done have an important influence on organizational performance. Some articles propose that the CEO’s behavior has a stronger relationship with the performance of the firm, But only few literatures discuss the relationship of the two variable. This study analyzes the influences of transformational leadership of CEO on organizational performance through the dynamic capabilities of organizational innovation.Although these indirect interrelations are very important for improving organizational performance, previous research has not usually explored them.The study consist of two sections, the theoretical part and the empirical part, at the last the authors present relevant conclusions and policy.The theoretical part mainly introduces the significance of this research, the content and methods of the theory of transformational leadership behavior, and the conclusion of this study assumptions and model.The empirical part of the study confirms these influences empirically, basing the analysis on a sample of164firms in China. The results reveal that:transformational leadership of CEO influences organizational performance positively; organizational innovation influences organizational performance positively; transformational leadership of CEO influences organizational performance positively through organizational innovation. Of the total four hypothesis, all the hypotheses are supported.The results suggest that organizations that CEO show more transformational behavior, have the better innovative capability and performance.Transformational leadership influences the organizational performance by innovation. Therefore, in order to improve the organizational innovation and organizational performance,the CEO need to exercise and develop their own transformational leadership, learn the establishment of a common vision for the organization, employees intellectual inspiration and personalized care, these measures can improve organizational ability to innovate and ultimately improve organizational performance.