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Despite the theoretical foundation that links Transformational leadership (TFL) with innovation behavior, previous studies have overlooked on Transformational leadership and innovation behavior at the individual level relationship but paid less attention to how transformational leadership qualities of top leaders would advance innovative work behavior within the organizational setting. To date, the impact of Transformational leadership at a top executive level on employee’s innovative work behavior (IWB) within an organizational setting has not been dealt with in-depth. However, using transformational leadership theory, this study uncovers the pivotal role of innovation culture (IC) and managerial innovation (MI) in the relationship between CEO transformational leadership and employee’s innovation behavior in SMEs. A cross-sectional design with a total of 434 employees from 24 SMEs operating from Rwanda was analyzed using structural equation modeling to evaluate the relationship between the variables developed in the study. The findings of this study support our hypothesized model.

Supervisory transformational leadership behavior is attracting a widespread interest due to its fundamental quality that spurs subordinate confidence and optimism in the workplace. Although, despite the mounting evidence that links transformational leadership to different organizational and individual innovative outcomes, it is not yet been documented whether transformational leadership (TFL) can strengthen employee’s creative performance behavior in the workplace. Recently, Successful entrepreneurs thrive under competitive pressures in today’s high customer sensitivity to quality and innovative services. Hence, it's now clear that workplace creativity would be a potential solution for driving business success today. Although, the vital role of supervisory transformational leadership behavior in enhancing creative performance behavior of employees has not been dealt with in depth. However, the present paper aims to validate the potential and possible relationship between supervisory transformational leadership style and employee’s creative performance behavior in the workplace. To prove or disprove the assumptions underlined in this study, a cross-sectional research design, was conducted using data from 14 commercial banks operating in Rwanda (412 of total respondents). A variety of methods and tools were employed to examine the relationship between the variables hypothesized in this study. We conducted CFA in SEM-Amos, mean and standard deviation using SPSS and also Hayes macro process to measure the possible effect of each variable in this model. The overall results support our hypothesized model.  In this regard, we believe that we have obtained comprehensive results proving and validating the usefulness of our hypothetical model.

Managerial innovation as an internal change agent plays a central role in coping with the speed of today’s fast-paced customer demand and highly competitive market, yet previous studies paid less attention to the potential measures of strengthening managerial innovation behavior within organizations. Drawing from transformational leadership theory, the current study shed new light on this issue by examining the role of CEO transformational leadership (TFL), innovation culture (IC) and cross-functional integration (CFI) in advancing managerial innovation behavior in SMEs. A cross-sectional study with a sample of 434 respondents from 24 SMEs operating in Rwanda was conducted. To genuinely analyze the relationship between the variables hypothesized in this study, we used structural equation modeling (SEM) and bootstrapping technique using Amos 23 and SPSS 24. The overall findings revealed that the relationship proposed in the model were significantly supported. However, our new mechanism implying innovation culture and cross-functional integration in the relationship between CEO transformational leadership and managerial innovation behavior, provide a substantial contribution to management literature.