Service innovation through transformational leadership, work-life balance, and organisational learning capability

Abstract

ABSTRACT The balance between work and personal life is a major challenge for organisational leaders nowadays, as it is acknowledged to be a source innovation and competitive advantage. Moreover, the literature indicates that transformational leadership, and organisational learning favour Work-life balance (WLB), by promoting intellectual stimulation, motivation, and self-confidence among members of the organisation. Despite the importance of these constructs, and especially in the service innovation context, no studies have been found that examine this relationship. Thus, this study aims at evaluating the association of transformational leadership and WLB on service innovation through organisational learning. Exploratory quantitative research was performed using data collected from a sample of 159 Brazilian architecture and urbanism Knowledge-Intensive Business Services (KIBS). Data were analysed using Structural Equation Modeling. We found positive relationships between transformational leadership, WLB/flexibility, organisational learning capability, and service innovation. However, no association was found between transformational leadership and organisational learning with WLB/Family Life. The theoretical contribution focuses on a framework that integrates transformational leadership, WLB, organisational learning, and service innovation, providing relevant insights for KIBS. On the practical side, this paper points to the importance of underlying organisational values that motivate and promote innovative behaviour among employees in the service innovation arena.