Abstract:
This study explores the effect of transformational leadership on innovative work
behavior (IWB) within East African Bottling Share Company (EABSC), a projecting minor
of Coca-Cola Beverages Ethiopia. The research employs a mixed-methods design,
combining both qualitative and quantitative approaches to provide a comprehensive
understanding of the phenomena. Quantitative data was collected through structured
surveys using a Likert scale, targeting 268 employees across key departments such as
Logistics, Production, Sales, Research, and Human Resources. The surveys measured
perceptions of transformational leadership's four components: Idealized Influence,
Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration and
their correlation with IWB. Additionally, qualitative insights were gathered through in-
depth interviews with managerial staff, offering perspectives on the challenges and
practices related to transformational leadership at EABSC. The quantitative data analysis
included descriptive statistics, correlation analysis, and linear regression to examine the
relationships between transformational leadership and IWB. The results indicated that
Idealized Influence (B = 0.656, p < 0.001), Inspirational Motivation (B = 0.282, p = 0.029),
and Intellectual Stimulation (B = 0.543, p < 0.001) positively effect IWB, while
Individualized Consideration (B = -0.734, p < 0.001) showed a negative correlation. These
findings highlight the importance of specific transformational leadership behaviors in
fostering innovation within the organization. Major recommendations include balance
individual consideration, implement recognition and reward, leadership consistency,
communication channel, and creating a supportive environment to enhance the effectiveness
of transformational leadership and sustain innovative practices. Future research could
explore longitudinal impacts and the role of organizational culture in moderating these
relationships and investigating the specific reason for the negative impact of individualized
consideration.
