The Influence of Transformational Leadership on Organizational Agility in Employees in Startup Companies in Medan City

Oct 13, 2025 by thesweetdesigns.com 19 views

The Influence of Transformational Leadership on Organizational Agility in Employees in Startup Companies in Medan City

Introduction

In today's rapidly growing business world, especially in the era of globalization, competition between companies has become increasingly stringent. One of the organizational models designed to find the right business model and produce fast growth is startup. This rapid environmental change has an impact on the high level of competition in running a business, which makes the organization in a dynamic situation. Therefore, to face change, high competition intensity, and dynamic environment, companies, especially startups, must have high organizational agility. To achieve a nimble organization, companies must have an influential leader. This article will discuss the influence of transformational leadership on organizational agility in startup companies in Medan City.

The Importance of Organizational Agility in Startup Companies

Organizational agility refers to the company's ability to adapt and respond to changes quickly, without losing focus on strategic goals. In startups, which often operate in an uncertain and very competitive environment, having a nimble organization is the key to surviving and developing. This is because startups often face rapid changes in the market, customer needs, and technological advancements, which require them to be agile and adaptable to stay competitive.

The Role of Transformational Leadership in Organizational Agility

Transformational leadership is a style of leadership that is able to inspire and motivate employees to achieve common goals. Transformational leaders not only focus on achieving business targets, but also on the development of individual employee potential. In the startup context, where changes can occur very quickly and uncertainty is common, leaders who can motivate employees to adapt quickly to be very valuable. Transformational leaders create a culture that supports innovation and learning, which allows employees to feel more involved and have a higher sense of ownership of their work.

The Positive Relationship between Transformational Leadership and Organizational Agility

The results of the analysis using Pearson Product Moment showed a significance value of 0.004, which was smaller than 0.05. This means that the alternative hypothesis (ha) is accepted, while the zero hypothesis (Ho) is rejected. In other words, there is a significant influence between transformational leadership on organizational agility in startup companies in Medan. The stronger the influence of transformational leadership, the better the agility of the organization in the company.

The Impact of Transformational Leadership on Organizational Agility

The positive relationship between transformational leadership and organizational agility shows the importance of the role of leaders in creating a work environment that supports collaboration and innovation. This is one of the factors that can determine the success of startup companies in Medan in facing existing challenges. The organization led by individuals who are able to motivate and empower their teams will be better prepared to adapt to change and optimize the existing potential.

Conclusion

In conclusion, the influence of transformational leadership on organizational agility in startup companies in Medan City is significant. Transformational leaders create a culture that supports innovation and learning, which allows employees to feel more involved and have a higher sense of ownership of their work. The positive relationship between transformational leadership and organizational agility shows the importance of the role of leaders in creating a work environment that supports collaboration and innovation. This is one of the factors that can determine the success of startup companies in Medan in facing existing challenges.

Recommendations

Based on the findings of this study, the following recommendations are made:

Entrepreneurs and leaders in startups should adopt the transformational leadership style to create a culture that supports innovation and learning.
Leaders should focus on developing individual employee potential and motivating employees to adapt quickly to changes.
Companies should create a work environment that supports collaboration and innovation, which will lead to better organizational agility.
Leaders should be aware of the importance of their role in creating a work environment that supports collaboration and innovation.

Limitations of the Study

This study has several limitations, including:

The study was conducted in Medan City, which may not be representative of other cities or countries.
The study only focused on startup companies, which may not be representative of other types of companies.
The study only used two measurement scales, which may not be comprehensive enough to capture the full range of transformational leadership and organizational agility.

Future Research Directions

Future research should focus on:

Conducting a study in other cities or countries to see if the findings are generalizable.
Conducting a study in other types of companies to see if the findings are applicable.
Using more comprehensive measurement scales to capture the full range of transformational leadership and organizational agility.

References

Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press.
Burns, J. M. (1978). Leadership. New York: Harper & Row.
House, R. J. (1971). A path-goal theory of leader effectiveness. Administrative Science Quarterly, 16(3), 321-338.
Yukl, G. A. (2010). Leadership in organizations (7th ed.). Upper Saddle River, NJ: Prentice Hall.
Frequently Asked Questions (FAQs) about the Influence of Transformational Leadership on Organizational Agility

Q: What is transformational leadership?

A: Transformational leadership is a style of leadership that is able to inspire and motivate employees to achieve common goals. Transformational leaders not only focus on achieving business targets, but also on the development of individual employee potential.

Q: What is organizational agility?

A: Organizational agility refers to the company's ability to adapt and respond to changes quickly, without losing focus on strategic goals. In startups, which often operate in an uncertain and very competitive environment, having a nimble organization is the key to surviving and developing.

Q: How does transformational leadership impact organizational agility?

A: The results of the analysis using Pearson Product Moment showed a significance value of 0.004, which was smaller than 0.05. This means that the alternative hypothesis (ha) is accepted, while the zero hypothesis (Ho) is rejected. In other words, there is a significant influence between transformational leadership on organizational agility in startup companies in Medan.

Q: What are the benefits of transformational leadership in organizational agility?

A: The positive relationship between transformational leadership and organizational agility shows the importance of the role of leaders in creating a work environment that supports collaboration and innovation. This is one of the factors that can determine the success of startup companies in Medan in facing existing challenges.

Q: How can entrepreneurs and leaders in startups adopt transformational leadership?

A: Entrepreneurs and leaders in startups can adopt transformational leadership by:

Focusing on developing individual employee potential and motivating employees to adapt quickly to changes.
Creating a culture that supports innovation and learning.
Encouraging collaboration and innovation among employees.
Empowering employees to take ownership of their work and make decisions.

Q: What are the challenges of implementing transformational leadership in startups?

A: Some of the challenges of implementing transformational leadership in startups include:

Limited resources and budget.
High levels of uncertainty and risk.
Difficulty in motivating and empowering employees.
Limited experience and expertise in leadership.

Q: How can startups overcome these challenges?

A: Startups can overcome these challenges by:

Investing in leadership development and training.
Creating a culture that supports innovation and learning.
Encouraging collaboration and innovation among employees.
Empowering employees to take ownership of their work and make decisions.

Q: What are the future directions for research on transformational leadership and organizational agility?

A: Future research should focus on:

Conducting a study in other cities or countries to see if the findings are generalizable.
Conducting a study in other types of companies to see if the findings are applicable.
Using more comprehensive measurement scales to capture the full range of transformational leadership and organizational agility.

Q: What are the implications of this study for practice?

A: The findings of this study have implications for practice in the following ways:

Entrepreneurs and leaders in startups should adopt transformational leadership to create a culture that supports innovation and learning.
Leaders should focus on developing individual employee potential and motivating employees to adapt quickly to changes.
Companies should create a work environment that supports collaboration and innovation, which will lead to better organizational agility.

Q: What are the limitations of this study?

A: This study has several limitations, including:

The study was conducted in Medan City, which may not be representative of other cities or countries.
The study only focused on startup companies, which may not be representative of other types of companies.
The study only used two measurement scales, which may not be comprehensive enough to capture the full range of transformational leadership and organizational agility.