The impact of transformation leadership on organizational creativity with job satisfaction as a mediating variable: a case study of FGV Holdings Berhad

Hadouga Hassiba
Doctor of Economics, Lecturer of Economics Department, Faculty of Economic Sciences, Abdelhamid Mehri Constantine 2 University, Algeria, e-mail: hadouga.hassiba@yahoo.fr, ORCID ID: https://orcid.org/0000-0001-6371-8608

Cite this article:

Hadouga, H. (2023). The impact of transformation leadership on organizational creativity with job satisfaction as a mediating variable: a case study of FGV Holdings Berhad [Vplyv transformatsiinoho liderstva na orhanizatsiinu kreatyvnist iz zadovolenistiu pratseiu yak poserednytskoiu zminnoiu: pryklad FGV Holdings Berhad], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3-4 (86-87), pp. 9-21.

Abstract

The aim of the study is to determine the impact of transformational leadership on organizational creativity with such a mediating variable as job satisfaction. The significance of the differences in the responses of FGV Hodings Berhad employees has been proven to the degree of practicing transformational leadership, practicing organizational creativity and job satisfaction that demonstrated by a sample consisting of one hundred permanent employees selected randomly by electronic response. This study uses a quantitative approach using a questionnaire, data testing method, Partial Least Squares (PLS) method which is part of Structural Equation Modeling (SEM) and Sobel test for testing the mediation effect. Using a quantitative approach allows you to test a theory through research variables, using calculations and statistical analysis as indicators to determine whether there is an effect or qualitative relationship between variables when testing hypotheses. The independent variable in this study is transformational leadership (X) and the dependent variable is organizational creativity (Y), while the mediating variable is job satisfaction (Z). Based on the results of analysis and testing the hypotheses that were made in this study, we concluded that there is an acceptable level of practicing transformational leadership behavior in the studied organization, and this allows it to meet the modern requirements of external environment and gain competitive advantages through to its human resources, because it encourages all officials to take initiatives that contribute to the change process within the organization by acquiring transformational leadership behavior. It is proved that in the studied organization there is an acceptable level of measurement of organizational creativity, which allows achieving excellence in productivity for leadership ensuring. The results of the study at FGV Hodings Berhad showed a high level of transformational leadership behavior.

Keywords

transformational leadership; organizational creativity; job satisfaction.

JEL classification:M140; M200; DOI:https://doi.org/10.33987/vsed.3-4(86-87).2023.9-21

UD classification: 316.46:331.101.32

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