Transformational Leadership Style, Organizational Innovations and Employee Performance of a Healthcare Company in Abu Dhabi 2024-2025

In today's rapidly evolving world, an organization's success depends on its ability to adapt to continuous change. Transformational leadership is crucial in shaping organizational culture, driving change, and fostering innovation. Cluff & Colker (2021) highlight that transformational leaders inspire, challenge, and empathize with their teams, building trust and enhancing performance. This study employed a descriptive-correlational research design to describe the level and correlate the said variables of the study. A sample size of 80 respondents was selected through random sampling from the total number of 100 hospital employees of a healthcare company in Abu Dhabi. The findings indicated a strong presence of transformational leadership within the organization, with respondents highly agreeing on its influence, particularly in idealized influence (3.81), inspirational motivation (3.74), individualized consideration (3.70), and intellectual stimulation (3.67). Organizational innovations were also perceived as significant (3.66), with process (3.71), structural (3.67), and technological innovations (3.59) playing key roles. Employee performance was rated very high (3.68), particularly in job productivity (3.73) and job satisfaction (3.70). A significant moderate correlation (r = 0.678, p = 0.000) was found between transformational leadership and organizational innovation, emphasizing its role in fostering innovation. However, no significant relationship was observed between transformational leadership and employee performance (r = 0.182, p = 0.070). Additionally, transformational leadership had minimal predictive power over employee performance, explaining only 6.6% of its variability, while organizational innovations accounted for 12%, with technological (p = 0.044) and structural (p = 0.029) innovations significantly improving employee performance.