The Impact of Transformational Leadership on Employee Creativity: The Mediating Role of Intrinsic Motivation in Organizational Settings

Abstract

This study examined the impact of transformational leadership on employee creativity with the mediating role of intrinsic motivation in public and private sector organizations in Punjab, Pakistan. A quantitative research approach with a cross-sectional, survey-based correlational design was employed to test the proposed hypotheses. Data were collected from 867 employees working in schools, colleges, universities, and administrative offices through a structured self-administered questionnaire using a five-point Likert scale. Respondents from public and private sector organizations were selected using a convenience sampling technique. The data were analyzed using SPSS. Descriptive statistics, reliability analysis, correlation, regression, and mediation analyses were employed in the study. The findings showed that transformational leadership positively influences employee creativity (β = 0.62, p < .01), and intrinsic motivation (β = 0.58, p < .01). In addition, the study established that intrinsic motivation significantly and positively influences employee creativity (β = 0.65, p < .01). Mediation analysis showed that intrinsic motivation partially mediates the influence of transformational leadership on employee creativity. Overall, the findings indicate that transformational leadership enhances employee creativity both directly and indirectly through intrinsic motivation. The study contributes to transformational leadership and motivation theories by identifying intrinsic motivation as a key psychological mechanism linking leadership behaviour to employee creativity. Practically, the findings suggest that managers should adopt transformational leadership practices that strengthen employees’ intrinsic motivation, thereby supporting innovation and organizational performance.