;In today′s competitive and rapid change business environment, the mastery of leadership management capability plays a crucial role in firm survival and growth. In past research, it was pointed out that transformational leaders support employees the necessary cognitive resources through intellectual stimulation, and encourage them to experience different ways of solving problems, that help them to maintain their creative self-efficacy. The purpose of this study is to explore the impact of transformational leadership style on the creative self-efficacy of regional trade service industries employees in Ho Chi Minh City, Vietnam. By exploring the five factors of transformational leadership styles, including Idealized Influence (Attributed), Idealized Influence (Behavior), Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration, the study will measure the relevance of each of those aspects to the innovation climate of trade service industry organizations and the innovative self-efficacy of employees. In order to achieve the above research purposes, this study adopted the "convenient sampling" experimental method, using the online questionnaire and the paper questionnaire to conduct a survey on total of 231 general employees, with 214 valid questionnaires.
The study tested the assumptions with statistical software SPSS, the results firstly show that the only two of five sub-facets of transformational leadership, “Idealized Influence on Behavior”, also be known as Charismatic behaviors and “Intellectual Stimulation” have positive impacts on employees′ creative self-efficacy. Secondly, the sub-facet “supported innovation environment” moderated significantly the positive correlation between “Charismatic behaviors” and employee creative self-efficacy, also moderated significantly the positive correlation between “Intellectual Stimulation” and employee creative self-efficacy; third, the “emotional conflict environment” moderated the negative correlation between “Charismatic behaviors” and employee creative self-efficacy, also moderated the negative correlation between and “intellectual stimulation” employee creative self-efficacy.
Keywords: Ho Chi Minh City, Vietnam, Trade service industries, Transformational leadership, Innovation climate, Employee creative self-efficacy