The Effect of Transformational Leadership on Managerial Performance Mediated Psychological Empowerment and Innovative Work Behavior

Abstract

Managerial performance is a critical factor in ensuring organizational effectiveness in contemporary management contexts. This study examines the effect of transformational leadership on managerial performance, with psychological empowerment and innovative work behavior as mediating variables, grounded in Goal Setting Theory. Data were collected from 182 junior high school principals in North Sumatra, Indonesia, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that transformational leadership has a significant positive effect on managerial performance, psychological empowerment, and innovative work behavior. Furthermore, psychological empowerment and innovative work behavior partially and complementarily mediate the relationship between transformational leadership and managerial performance. These findings extend Goal Setting Theory by highlighting the dual mediating mechanisms through which leadership enhances managerial outcomes. Practically, the study underscores the importance of transformational leadership in fostering empowerment and innovation within public-sector organizations.