1.1 Problem Statement
While considerable attention has been paid to the organizational behavior ingeneral，an extant research the factors influencing organizational innovation isambiguous (Junget al?，2003; Jung et al,，2008). It is not clear，whether the factorsinfluencing organizational innovation at three levels of organization, the direct orthe indirect effect of these factors on organizational innovation, specifically，thedirect effect of transformational and transactional leadership on organizationalinnovation and the effet of organizational empowerment culture. In addition, theeffect of transformational leadership on creativity and organizational innovationthrough motivation and creative self-efficacy, moreover the effect of organizationalbased self-esteem which is considered as important factors influencing innovation.In addition，some researchers have suggested that organization culture mediates theleadership-innovation relationship (Jung et al., 2003; Mumford & Licuanan, 2004).While (Mann; 2005) argued that organizational culture moderate the relationshipbetween leadership and organizationalinnovation. As a result, research to date stillleaves open to question whether motivation, creative self-efficacy，organizationalbased self-esteem and leadership, organization empowerment culture has animportant impact on organizational innovation.
1.2 Objectives of Research
The main objective of this thesis is review the field of organizationalinnovation and its related influencing factors. Moreover; is to identify and analyzethe effects of important factors in fostering organizational innovation, and themoderating role of organizational empowerment culture, specifically; the researchis designed to fiilfill the following objectives;
(1) Need to know the factors influencing innovation in organization
(2) Aim to know the mechanism by which leadership related to innovation
(3) The role and the impact of leadership on organizational innovation
(4) Develop a model to describe the relation between transformational,transactional leadership and organizational innovation through organizationalempowerment culture factor
(5) Develop a model to describe the relation among leadership，motivation,creative self-efficacy，organizational based self-esteem，creativity infostering organizational innovation
(6) Figure out the mediating role of motivation in fostering organizationalinnovation by passing on creativity
(7) The role of creative self-efficacy on organizational innovation by passing oncreativity
(8) The role of organizational based self-esteem on organizational innovation
(9) Figure out the leadership characteristics improve or hinder for innovation.The outputs of this research will inform the development and delivery of policyimplications, and try to give a solution for current problems，and suggestions for thefuture.
2 Literature review
2.1 Concept of creativity and innovation
In this part，we state the concepts of creativity and innovation rather than theconcept of innovation, because in the literature，the two terms are frequently usedinterchangeably; many journals use creativity as their names, including the Journalof Creative Behaviour (JCB), Creativity Research Journal (CRJ), of course theytalked about many topics correlated to innovation. In fact the two terms areregarded similar creativity and innovations are closely related constructs that sharesignificant overlap in characteristics (Van de Yen and Poole, 1989)，they explainthe phenomenon of innovation conjunctively.Creativity refers to the production of ideas about products, practices,processes，or procedures that are novel and potentially useful to the organisation(Amabile et al.，1996).Innovation is about a process of developing and implementing a new idea(Van de Ven and Poole, 1989). But for innovation is more talked about inorganisation.Innovation is the process by which new ideas are captured，filtered, funded，developed, modified, clarified and eventually commercialised or implemented. It iscreativity that fuels the innovation pipeline. But it is innovation to realise the valueof creativity.
2.2 Transformational, transactional leadership and organizational empowerment culture
In recent decades, leadership has been an important research topic in the socialsciences. Recently, the concept of leadership has been aroused renewed interest.Many researchers' (Den Hartog，Van Muijen and Koopman, 1997) assume that theresurgence of interest in searching in the area of leadership appears to beaccompanied by undertaking in consideration the distinction between the two stylesnamely; transformational and transactional leadership, by resean of leadership is present in all cultures and has existed for as long as people have interacted(Rukmani，Ramesh and Jayakrishnan, 2010). (Northouse, 2004) assume that，thereare different theoretical approaches to explain leadership process, it is hard to findappropriate definitions of leadership Van Wart (2003) which reflect limitations ondoing scientific leadership research. Consequently, establishing a standardframework of leadership is a difficult. Some of the current definitions of leadershipare presented in order to develop an understanding of the concept of leadership.(Omolayo; 2000) defined leadership as social process in which the leader seeks theparticipation of subordinates in order to reach organizational goals and objectiveswhile (Northouse, 2004) defined leadership as a process whereby an individualinfluences a group of individuals to achieve a common goal. Moreover; (Akanwa,1997) assume that leadership as a process in which leaders try to influence theactivities of an individual or a group of individuals in order to guide them towardsgoal achievement in given situations.
3 Factors Influencing Innovation at Three Levels..........21
3.1 Introduction ......... 21
3.2 Content Analysis on Literature : Method .........22
3.3 Results......... 23
3.4 Key Factors Influencing Innovation......... 28
3.5 Discussion and implementation for future research......... 39
3.6 Conclusion ......... 42
4.1 The reason for this study......... 44
4.2 Theoretical background and hypotheses......... 47
4.3 Methodology .........52
4.4 Data analysis......... 55
4.5 Discussion......... 60
4.6 Conclusion......... 64
5 Effects of motivation，creative self-efficacy.........66
5.1 Introduction......... 66
5.2 Theoretical background and hypotheses......... 67
5.3 Methodology......... 71
5.4 Results ......... 75
5.5 Discussion......... 80
5.6 Conclusion......... 82
5 Effects of motivation, creative self-efficacy, organizationalbased self esteem in fostering organizational innovation
In this chapter we present a new the conceptual model framework and researchhypotheses. The hypotheses and conceptual model framework are derived from theabove results of the first study. In the following sections, we first discuss therelationship between transformational leadership and motivation which leads us tostudy the relationship among motivation, creativity and organizational innovation,after we discuss the relationship among transformational leadership, creativeself-efficacy and creativity which leads us to improve the organizational innovation.Moreover，the moderating role of organizational based self-esteem betweentransformational leadership and creativity were organizational innovation isimproved. In the last section, we discuss the finding and conclude the results. Recently, the increased of economics and management of any organizationimpact on the suppliers and customers, which has to demand higher quality ofservices, arrays of product. For these realities, any organization need to continuouslyrenew and improve their offerings to secure long-term survival, growth andprofitability more over organization need to increase their efficiency andeffectiveness. For these increase and realities, scholars have been motivated toidentify factors that can stimulate creative behaviours in individual, groups andorganizations.
Our research consist three studies, study I designed to explore factorsinfluencing innovation at three levels in organization used the content analysismethod，we found; each factors has an important role in fostering organizational,were the II and III studies based on the study I result，whilst the study II explorednew mechanism of relation among transformational, transactional leadership，organizational innovation and organizational empowerment culture, this study doesnot studied before，as a brief conclusion to study II，we found a direct impact oftransformational, transactional leadership on organizational innovation，moreoverwe found that organizational empowerment culture moderate the relationshipbetween a dimension of transformational leadership namely ，Idealized Influence"and organizational innovation. The thesis explored and constructed a new modelwhich does not studied before alos, while a mechanism of relation amongtransformational leadership，organizational innovation under motivation，creativeself efficacy，organizational based self-esteem and creativity，were all thehypotheses are realized，a positively relationship between transformationalleadership and organizational innovation under each of motivation，creative selfefficacy，creativity and organizational based self- esteem. Tables below show abrief summary of three studies.