Abstract
The relationship between leadership, organizational culture and innovation is examined. One hundred and two Portuguese organizations from different activities sectors participated in the study. In each organization, top managers were asked about the innovation activity and employees were asked about the leadership and organizational culture of their organizations. Organizations were classified as either technology-based or non-technology-based. A structural model was tested by multi-group analysis, considering the sector of activity, technology-based companies and non-technology-based companies.
Highlights
Introduction and theoretical frameworkLeadership, organizational culture and innovation are mentioned in the literature as key factors for the success of organizations and their competitive advantage
Some studies have shown that transformational leadership supports the organizational innovation
Bass and Avolio (1993) have argued that transformational leadership and organizational culture are interconnected factors, such that transformational leaders working in the existing culture are concerned with changing organizational
Summary
Leadership, organizational culture and innovation are mentioned in the literature as key factors for the success of organizations and their competitive advantage. Transformational leaders are typically described as those who align the individual, leader, group and organization’s interests and objectives by providing an inspiring vision of the future (Bass, 1999) This type of leadership has been conceptualized in four dimensions: inspirational motivation (i.e. the leader communicates clearly and inspires workers to achieve important organizational goals); idealized influence (i.e. the leader provides a role model for followers and displays in them strong ethical principles); individualized consideration (i.e. the leader treats each follower as an individual with unique needs and attends to these needs); and intellectual stimulation (i.e. the leader encourages the follower to be creative and challenges him or her to think of old problems in new ways) (Bass and Riggio, 2006). The exploratory model starts from the interdependence between culture and leadership and analyses the influence of this association in innovation, considering the activity sector of the company (technology-based or nontechnology-based)
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