LAUSR

Purpose The purpose of this paper is to examine the potential consequences of transformational leadership on follower innovative behavior as well as to investigate the moderating effect of team learning on the relationship. It is argued that an excessive level of transformational leadership may even decrease the subordinates’ innovative behavior due to their negative emotions derived from the leadership, while an appropriate level of transformational leadership can positively influence innovative behavior. Furthermore, the situational factor of team learning, which reinforces the positive feelings of team members through their improved competency, can amplify the positive impact and diminish the negative impact of transformational leadership on innovative behavior. Design/methodology/approach Data were collected from R&D teams of large- and mid-sized companies in Korean industries. Survey data from 307 team members and 51 team leaders from 51 project teams were tested using hierarchical linear modeling analysis. Team members evaluated the transformational leadership of their team leaders as well as the perceived level of learning in their teams, and team leaders evaluated the innovative behavior of their team members. Findings Multi-level analysis confirmed a non-linear relationship (an inverted U shape) between transformational leadership of team leaders and innovative behavior of team members. It means innovative behavior was negatively related to excessive transformational leadership and positively related to a modest level of the leadership. Furthermore, statistical analysis confirmed the positive multi-level moderating effect of team learning. Research limitations/implications The core dimension of transformational leadership, charisma, was the only measurement of the leadership in this study. Most South Korean companies adopted performance-based compensation systems and charisma is a prevailing leadership behavior at emerging market of the nation. As such, other dimensions of transformational leadership such as “individualized consideration” or “intellectual stimulation” are relatively neglected in most companies of South Korea. Future research needs to consider these other dimensions for the generalization in research. Practical implications Leaders in emerging markets, such as project team leaders or R&D team leaders, should avoid immoderate transformational leadership and should maintain a proper level of transformational leadership. The contemporary leaders also need to utilize team learning to maximize innovative behavior. Originality/value These findings illustrate the disadvantage of excessive transformational leadership and highlight the neutralization effect of team learning on the negative impact of the excessive leadership. Team learning has the potential to enhance members’ innovative behaviors, and it could moderate the perceptions of excessive transformational leadership.