Abstract
This study uses a systematic quantitative research approach to identify the relationship between entrepreneurial leadership (EL) and innovation through the moderating effect of employee voice behavior (EVB). This study focuses on employees of Pakistani medium and large enterprises and implies that there is a positive and significant relation between EL and innovation and similarly between EL and EVB. Current study concludes that EVB also partially mediate the relationship between EL and innovation, which means that there are other factors mediating their relationship about which further research needs to be done. It can be concluded from this paper that the firms having entrepreneurial leadership ability in their employees and having EVB in organizational culture are usually good at innovation.
Highlights
Over the past couple of decades, the business environment has changed dramatically due to rapid globalization and technological advancements
Analysis showed that both direct effect i.e. entrepreneurial leadership to innovation and indirect effect i.e. entrepreneurial leadership to innovation through employee voice behavior are significant, which implies that even though employee voice is mediating the relationship, there are some other factors that are affecting the relationship between entrepreneurial leadership and innovation
Further research needs to be done about the other factors that are affecting the relationship between entrepreneurial leadership and innovation
Summary
Over the past couple of decades, the business environment has changed dramatically due to rapid globalization and technological advancements. The only way of survival for businesses is innovation, which is regarded as the key success factor and pinnacle for growth and survival in the modern business era (Rajapathirana & Hui, 2017). Recent developments in the theory of economic growth have highlighted the importance of innovation for sustainability in output and growth in productivity for firms in developing countries (Wadho & Chaudhry, 2018). A number of studies have reported a positive relationship between innovation and labour productivity, profitability, firm growth, openness, and other firm-level outcomes (Wadho & Chaudhry, 2018). Innovation has been defined in a number of ways, one important definition is that Innovation is an outcome, process and mindset at the same time, which facilitates an organization to search and get maximum out of opportunities (Kahn, 2018). An important feature of innovation is that it should be implemented (EUROSTAT/OECD, 2005)
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