This paper attempts to examine and evaluate an extended theoretical model which was devised by combining earlier theoretical frameworks developed by theorists on transformational leadership and new product development (NPD) team climate. The research sample represents three work teams representing different global work location of a European multinational company i.e., Finland, Norway and the UK. The process of hypotheses testing confirmed the validity and feasibility of the newly extended theoretical model. The study results demonstrated positive association among selected theoretical concepts and the related variables, e.g., transformational leadership’s linked variables; leader’s competence to empower and management initiatives, while NPD team climate’s linked variables; work situation and collaboration. However, the study results disapproved the positive association between the variables; supportive leadership and organizational trust.

Keywords: Transformational leadership, management initiatives, new product development, supportive leadership, organizational trust