The Effects of Transformational Leadership, Organizational Innovation, Work Stressors, and Creativity on Employee Performance in SMEs

Purpose of the StudyThe significance of creativity and performance in the workplace has been illustrated on various occasions. This study aims to find out if there is a link between transformative leadership, organizational innovation, psychological issues such as hindrance and challenge stressors,...

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Main Authors: Jawaria Nasir, Rashidah M. Ibrahim, Muhammad Arslan Sarwar, Binesh Sarwar, Waleed Mugahed Al-Rahmi, Fahad Alturise, Ahmad Samed Al-Adwan, Mueen Uddin
Format: Article
Language:English
Published: Frontiers Media S.A. 2022-04-01
Series:Frontiers in Psychology
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fpsyg.2022.772104/full
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author Jawaria Nasir
Rashidah M. Ibrahim
Muhammad Arslan Sarwar
Binesh Sarwar
Waleed Mugahed Al-Rahmi
Fahad Alturise
Ahmad Samed Al-Adwan
Mueen Uddin
author_facet Jawaria Nasir
Rashidah M. Ibrahim
Muhammad Arslan Sarwar
Binesh Sarwar
Waleed Mugahed Al-Rahmi
Fahad Alturise
Ahmad Samed Al-Adwan
Mueen Uddin
author_sort Jawaria Nasir
collection DOAJ
description Purpose of the StudyThe significance of creativity and performance in the workplace has been illustrated on various occasions. This study aims to find out if there is a link between transformative leadership, organizational innovation, psychological issues such as hindrance and challenge stressors, and employee creativity and employee performance. There is still a lack of awareness of the factors that influence employee performance in small and medium businesses (SMEs) in Pakistan. Pakistan’s SMEs have struggled to survive in their early years, with an initial failure rate of 90 percent to 95 percent.MethodologyThe relationship between hindrance and challenge stressors, organizational innovation, transformational leadership, employee creativity, and their effect on overall employee performance is established through employing Structural Equation Modeling (SEM). In this study, constructs were developed from existing theories, hypotheses were generated, data were collected from 424 SME employees, and SEM analysis was conducted to prove the suggested hypothesis. The employees of SMEs are the research study’s unit of analysis.FindingsThe findings of this study demonstrated that challenge stressors, transformational leadership, and employee creativity all had positive and significant effects on employee performance.Originality/ValueThis is one of the first studies to study and extends existing understanding of psychological research in this manner and following correlations in a developing country, Pakistan: the links between transformational leadership and employees’ perception of creativity and performance along with organizational innovation and work stressors. Based on theoretical considerations, a model is proposed, and hypotheses are established and explored. The findings of this study can help businesses increase employee performance by informing employee performance improvement methods. Business executives might learn more about how to engage and motivate employees to improve their performance.
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spelling doaj.art-3c128f97485a4343a245259fe886f3732022-12-22T01:47:56ZengFrontiers Media S.A.Frontiers in Psychology1664-10782022-04-011310.3389/fpsyg.2022.772104772104The Effects of Transformational Leadership, Organizational Innovation, Work Stressors, and Creativity on Employee Performance in SMEsJawaria Nasir0Rashidah M. Ibrahim1Muhammad Arslan Sarwar2Binesh Sarwar3Waleed Mugahed Al-Rahmi4Fahad Alturise5Ahmad Samed Al-Adwan6Mueen Uddin7Faculty of Business & Management, Universiti Sultan Zainal Abidin, Kuala Nerus, MalaysiaFaculty of Business & Management, Universiti Sultan Zainal Abidin, Kuala Nerus, MalaysiaFaculty of Management and Administrative Sciences, University of Gujrat, Gujrat, PakistanDepartment of Management Sciences, COMSATS University Islamabad, Sahiwal, PakistanFaculty of Social Sciences & Humanities, School of Education, Universiti Teknologi Malaysia, Johor Bahru, MalaysiaDepartment of Computer, College of Science and Arts in ArRass Qassim University, Ar Rass, Saudi ArabiaElectronic Business and Commerce Department, Business School, Al-Ahliyya Amman University, Amman, JordanSchool of Digital Science, Universiti Brunei Darussalam, Gadong, Brunei DarussalamPurpose of the StudyThe significance of creativity and performance in the workplace has been illustrated on various occasions. This study aims to find out if there is a link between transformative leadership, organizational innovation, psychological issues such as hindrance and challenge stressors, and employee creativity and employee performance. There is still a lack of awareness of the factors that influence employee performance in small and medium businesses (SMEs) in Pakistan. Pakistan’s SMEs have struggled to survive in their early years, with an initial failure rate of 90 percent to 95 percent.MethodologyThe relationship between hindrance and challenge stressors, organizational innovation, transformational leadership, employee creativity, and their effect on overall employee performance is established through employing Structural Equation Modeling (SEM). In this study, constructs were developed from existing theories, hypotheses were generated, data were collected from 424 SME employees, and SEM analysis was conducted to prove the suggested hypothesis. The employees of SMEs are the research study’s unit of analysis.FindingsThe findings of this study demonstrated that challenge stressors, transformational leadership, and employee creativity all had positive and significant effects on employee performance.Originality/ValueThis is one of the first studies to study and extends existing understanding of psychological research in this manner and following correlations in a developing country, Pakistan: the links between transformational leadership and employees’ perception of creativity and performance along with organizational innovation and work stressors. Based on theoretical considerations, a model is proposed, and hypotheses are established and explored. The findings of this study can help businesses increase employee performance by informing employee performance improvement methods. Business executives might learn more about how to engage and motivate employees to improve their performance.https://www.frontiersin.org/articles/10.3389/fpsyg.2022.772104/fullwork stressortransformational leadershipcreativityorganizational innovationemployee performance
spellingShingle Jawaria Nasir
Rashidah M. Ibrahim
Muhammad Arslan Sarwar
Binesh Sarwar
Waleed Mugahed Al-Rahmi
Fahad Alturise
Ahmad Samed Al-Adwan
Mueen Uddin
The Effects of Transformational Leadership, Organizational Innovation, Work Stressors, and Creativity on Employee Performance in SMEs
Frontiers in Psychology
work stressor
transformational leadership
creativity
organizational innovation
employee performance
title The Effects of Transformational Leadership, Organizational Innovation, Work Stressors, and Creativity on Employee Performance in SMEs
title_full The Effects of Transformational Leadership, Organizational Innovation, Work Stressors, and Creativity on Employee Performance in SMEs
title_fullStr The Effects of Transformational Leadership, Organizational Innovation, Work Stressors, and Creativity on Employee Performance in SMEs
title_full_unstemmed The Effects of Transformational Leadership, Organizational Innovation, Work Stressors, and Creativity on Employee Performance in SMEs
title_short The Effects of Transformational Leadership, Organizational Innovation, Work Stressors, and Creativity on Employee Performance in SMEs
title_sort effects of transformational leadership organizational innovation work stressors and creativity on employee performance in smes
topic work stressor
transformational leadership
creativity
organizational innovation
employee performance
url https://www.frontiersin.org/articles/10.3389/fpsyg.2022.772104/full
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