Exploring the Critical Factors of Transformational Leadership and Strategy Implication in Promoting Service Innovation Under Post‐ COVID‐19 Pandemic

ABSTRACT This study is to explore how transformational leadership, competitive advantage, absorptive capability, service innovation, human capital, and knowledge creation are interconnected in the travel industry. A survey questionnaire was distributed to travel agencies located in various regions across Taiwan. The purpose of this survey was to gather insights from travel agency managers regarding key factors relevant to the study. A total of 350 valid responses were collected from travel agency managers, ensuring a diverse and representative sample. To analyze the data, structural equation modeling (SEM) was employed, allowing for a comprehensive examination of the relationships between variables and testing of the proposed hypotheses to assess complex causal relationships and provide robust statistical insights. We identify the crucial mediating role of absorptive capacity and competitive strategy between transformational leadership and service innovation and reveal that human capital and knowledge generation strengthen the positive correlation under different stages of the service innovation.