Enhancing organizational innovation in Indian automobile industry

Purpose This study aims to focus on examining the impact of transformational leadership on employee creativity to enhance organizational innovation through mediating effect of intrinsic motivation and the moderating effect of organizational culture on the relationship between employee creativity and organizational innovation in Indian automobile industries. Design/methodology/approach Responses were collected from engineers, managers and R&D professionals from car manufacturing and R&D units from southern India through a structured questionnaire. The data were analyzed using IBM SPSS version 20. The validity of the constructs and the theoretical model were confirmed by applying structural equation modeling approach using IBM SPSS Amos version 20. Findings Empirical findings proved that transformational leadership has a positive effect on employee creativity, as mediated by intrinsic motivation. Studies also revealed that employees tend to exhibit higher creative potential when they are exposed to a higher degree of distinct shared assumptions, values and beliefs, which governs their behavior in an organization. Research limitations/implications As research was carried out in Indian automobile manufacturing and R&D units, it cannot be generalized across the broader range of sectors and international environment. Originality/value This research is unique in its attempt to empirically test the moderating effect of organizational culture in enhancing organizational innovation in Indian automobile industry.