The Role of Employee Empowerment Mediates the Effect of Transformational Leadership on Innovation (Case Study at PT Media Sarana Data, Bali, Indonesia)

ABSTRACT : This study aims to determine the role of employee empowerment in mediating the effect oftransformational leadership on innovation. The sample in this study are 87 employees, determined by thesaturated sample method. Data collection carried out through interviews and questionnaires. The data analysistechnique used is path analysis and sobel test. The results of this study indicate that transformational leadershiphas a positive and significant effect on innovation, transformational leadership has a positive and significanteffect on employee empowerment, employee empowerment has a positive and significant effect on innovation,and employee empowerment mediates the relationship between transformational leadership and innovation. PTMedia Sarana Data should pay more attention to the quality of a transformational leader towards its employeesso that the level of employee empowerment is getting better so that it raises innovative ideas from companyemployees.

Keywords -Transformational Leadership, Employee Empowerment, Innovation