Leading with purpose: How transformational leadership inspires innovation through workplace spirituality

Abstract

This study examines the impact of transformational leadership on innovative work behavior, focusing on the mediating role of workplace spirituality within Indonesia's logistics sector. As the industry experiences rapid growth and intensifying competition, especially after the COVID-19 pandemic, the need for innovative solutions and adaptive leadership becomes crucial. Using a quantitative approach, data were collected from 220 managers at Pos Indonesia, a state-owned enterprise with strategic national importance. The study confirms that transformational leadership significantly influences employees' innovative behavior, and this relationship is further strengthened through workplace spirituality. Leaders who inspire, provide meaningful direction, and embody ethical values foster a spiritually rich work environment. Such an environment enhances employees’ intrinsic motivation, sense of purpose, and emotional engagement—key drivers of innovation. The findings underscore the importance of integrating transformational leadership and workplace spirituality to create a culture that supports creativity and sustainable innovation. By establishing a strong sense of community and inner purpose among employees, organizations can enhance their competitive advantage. This study contributes to existing literature by empirically validating the mediating role of workplace spirituality in the relationship between leadership and innovation. Practical implications suggest that leaders in the logistics industry should be equipped with both transformational capabilities and a sensitivity to workplace spirituality. Future research is encouraged to extend these findings across sectors and cultural settings to build a more comprehensive framework.