“Transformational Leadership Style and Employee Outcomes in Graduated Startups: A Structural Model from Gujarat”

Abstract

This research examines the influence of Transformational Leadership Style (TLS) on critical employee outcomes, such as job creativity, intrinsic motivation, exemplary traits, job commitment, organizational role performance, and job performance output, specifically within the framework of graduated startups in Gujarat, India. Utilizing the theoretical framework this study investigates the four fundamental dimensions of Transformational Leadership Style: Inspirational Motivation, Intellectual Stimulation, Exemplary Behaviour, and Exemplary Traits. A quantitative, cross-sectional design utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) was implemented to examine the responses of 300 employees from diverse functional roles within startups located in Gujarat. The findings indicate that transformational leadership style (TLS) exerts a considerable and affirmative impact on various psychological and behavioral variables among employees, with the most pronounced relationship observed between TLS and exemplary characteristics. Furthermore, it was observed that job creativity serves as a mediator in the relationship between transformational leadership styles and job performance outcomes. The results enhance the theoretical framework surrounding leadership within entrepreneurial settings, especially in developing economies, and provide actionable insights for founders, incubators, and policymakers aiming to establish sustainable and innovation-oriented leadership methodologies.