Transformational leadership (TFL) can drive organizational change, yet the mechanisms fostering effective outcomes remain unclear in sectors including education, banking, and manufacturing. Organizational culture (OC) plays a critical role in employee performance and innovation and understanding TFL’s influence is crucial, as it impacts leadership practices, employee motivation, and organizational success. This systematic review addresses the challenge of understanding how TFL influences organizational culture, inclusiveness, innovation, and the barriers hindering its successful application, by synthesizing existing studies to identify key trends, gaps, and insights, ensuring a comprehensive understanding of the topic. Key databases used include Business Source Complete, Academic Search Complete, And Google Scholar, with key themes identified including the impact of TFL on fostering inclusive environments, promoting innovative behaviors, and overcoming organizational inertia. These themes are critical across sectors, providing insights for leadership strategies aimed at enhancing employee engagement and performance. Future research can explore the impact of TFL on organizational performance through quantitative survey-based studies and qualitative case studies offering a deeper understanding of employee experiences across different organizational settings.
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