Innovation is critical for any organization’s success in the twenty first century. Organizations are continuously seeking to create new products and services to differentiate themselves from their completion and to create a competitive advantage in the dynamic global business environment. In order for this to occur, the organization needs to encourage employee creativity. Furthermore, leaders in the organization also need to work with the employees to help guide and support them as they embark on the development of products and services. This study examined this organizational environment by assessing the impact that the organizational climate promotes innovation. It also assessed if transformational leadership where the leader works with the employee to identify changes and create a vision to implement these changes. The study also investigated the effect of employee personality on individual innovativeness at work.
The results of the study suggest a positive and significant relationship between organizational climate, transformational leadership, and individual innovativeness at work. Employee openness and extraversion showed a positive and significant relationship also to employee innovativeness while the intuition personality type did not show a positive relationship. The extraversion personality trait also moderated the relationship between organizational climate, transformational leadership, and individual innovativeness at work. The results of the study confirm the role of the organization, leader, and employee in creating and implementing creative products and services in the work place
