Why Innovation requires Transformational Leadership in Banks?

In today’s rapidly changing business environment organizations are increasingly compelled to promote workplace innovations to ensure their survival. Innovation has been identified as the most vital competence for organizational success in twenty-first century workplaces. Organizations with an innovative capacity are able to identify the new opportunities needed to achieve a competitive advantage. Researchers have been searching to identify the factors that stimulate and sustain innovation in organizations. In particular transformational leadership and knowledge sharing were the factors most studied in the context of innovation. Transformational leadership regarded as a leadership style that inspires acknowledges and stimulates an employee to perform beyond expectations. Knowledge sharing is the process by which knowledge possessed by an individual is transformed into a configuration that can be understood integrated and applied by others.