Abstract
Organisational innovativeness has been discussed as a paradigm industrywide (DeMiranda, et al., 2009) and as a national source of competitive advantage (Ludviga, 2012). Studies indicate that innovativeness might depend on leadership and leaders’ capacities to establish right organisational climate. Current study investigates if the quality of relationship between the leaders and subordinates might influence the overall organisational innovativeness. The aim of the research is to test how the relationship between leaders and subordinates (measured by LMX scale, Graen, Uhl-Bien, 1995) impacts organisational innovativeness. The quantitative data were gathered via a structured survey within 80 large-size organizations with a total number of 405 respondents. To test the model, the hierarchical regression analysis was used. The results showed that the quality of relationship between the leader and the subordinate plays a statistically significant role in organisational innovativeness. This study allows a more comprehensive understanding of LMX from the societal perspective. Implications for the business practitioners in Latvia and managerial literature on LMX and innovativeness are discussed.
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