The Role of Transformational Leadership Style in Organizational Innovation Capability: A Systematic Review of Antecedents, Mechanisms, and Outcomes

This study presents a systematic literature review (SLR) examining the role of transformational leadership style (TLS) in driving organizational innovation capability (OIC). Despite the growing scholarly interest in this relationship, no comprehensive synthesis exists that simultaneously maps the antecedents, mechanisms, and outcomes linking TLS to OIC across diverse organizational contexts. Following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 guidelines, this review analyzed 100 peer-reviewed articles retrieved from the Dimensions AI database using the search string “transformational leadership” AND “innovation capability” in title and abstract, covering publications from 2013 to 2026. The findings reveal that TLS consistently and positively influences OIC through two dominant mechanisms: (1) knowledge-based pathways, particularly knowledge sharing (identified in 17 studies) and knowledge management capability (10 studies), and (2) digital transformation mechanisms (18 studies), which have emerged as the primary pathway in recent literature from 2024 to 2026. Antecedents of TLS effectiveness include perceived organizational support, organizational culture, and CEO or managerial characteristics. Key outcomes associated with TLS-driven OIC include competitive advantage, organizational performance, and sustainable performance. The theoretical foundations most frequently employed are Dynamic Capabilities Theory and the Resource-Based View. Geographically, the literature is concentrated in Southeast and East Asia, particularly Indonesia, Vietnam, and China. This review identifies four critical research gaps: geographic bias, reliance on cross-sectional designs, understudied green innovation dimensions, and limited examination of individual-level psychological mechanisms. The findings offer actionable insights for scholars and practitioners committed to leveraging leadership for sustained organizational innovation.