Relationtionship of Authentic Leadership and Organisational Culture with Organisational Innovation in Pharmaceutical Industry

Abstract

Purpose – The purpose of this paper is to investigate the relationship between authentic leadership and organizational culture which organizational innovation under VUCA business environment.Organizations must foster organizational innovation in the organizations for their sustainability(Chen, Zheng, Yang, & Bai, 2016). Organizational Innovation is important for the continuity of organizations and organizations that do not innovate run a large risk to perish (Verlag, 2016).Organizational innovation is crucial for the survival of the organizations in the conditions and situations of volatility, uncertainty, complexity and ambiguity prevalent in the current global economy. Business is facing more challenges in this VUCA environment, especially in the pharma sector. This environment demands to work on innovative ways to strengthen the competitive advantage and to sustain the businesses. Due to this environment, there is a need for continuous and sustainable innovation for long-term survival of the organizations. This study intends to give insights into the organizational culture and authentic leadership which have an influence on the organizational innovation. Design/methodology/approach – This study used positivist deductive approach. A deductive approach starts with well-defined theories and identified variables. A Survey was conducted with a structured questionnaire. The questionnaire was administered to the employees working in R&D project teams in the pharma sector. Multiple regression was used to test the hypothesized relationships. Findings – Authentic leadership and Organizational culture showed significant relationship with the organizational innovation Practical implications – Organizations should focus on creating the authentic leadership skills among the project team leaders to reap maximal organizational innovation and have an organizational culture topromoting organizational fosters organizational innovation. The study has practical implications for both the top management and individual employee working in theresearch-intensiveprojects in the organizations. Originality/value – The findings contribute to theleadership, organizational culture,and innovation literature first by showing how authentic leadership influences organizational innovation and how the organizational culture play an important role in the organizational innovation in the pharma industry.