Entrepreneurial Orientation and Transformational Leadership for the Development of Innovation Capabilities

Abstract

Purpose: This paper aims to analyse the impact of entrepreneurial orientation (EO) through the relationship of transformational leadership (TL) for the development of dynamic capabilities (DC) for organisational innovation. Methodology/Approach: Under a qualitative method, and a single case study strategy, data were obtained from interviews with 15 senior managers and leaders of innovation activities; the document review and data triangulation method was used to analyse causality relations proposed in the theoretical framework. Findings: The empirical results confirm that the EO and TL have a positive relationship with the development of innovation capabilities. Findings indicate that risk-taking, proactiveness, assimilation, and exploitation of internal and external knowledge remain the main difficulties in improving innovation capabilities and adaptability in the technological environment. Research Limitation/implication: The present paper gathered data from a specific organisation in the field of EO. The research allowed us to better understand the incidence of EO, TL, and DC regarding the relationship between variables, and it should be considered a potential source for enhancing innovation management capabilities. Originality/Value of paper: This work is the first that integrates the concepts of EO with other related disciplines into a single case strategy, within a specific entrepreneurship and innovation ecosystem context in a large automotive industry.