The Effect of Comprehensive Leadership Style on Team Performance: The Role of Promoting A Team's Innovation Culture

Abstract

Objective: Inclusive leadership style is considered an effective leadership method in any organization. The aim of this study is to its impact on project team performance, a common form of outsourcing in Hanoi, Vietnam. While also considering the mediating role of innovation culture in this relationship. Method: The study provides empirical evidence from a sample of 876 project team members at outsourcing companies in Hanoi by evaluating the measurement model and testing the structural equation model (PLS-SEM). Results: The results of empirical research show that innovation culture has an important role in mediating the relationship between inclusive leadership style and team performance. In addition, innovation culture also positively affects individual creativity, thereby helping to improve work results in teams. From there, it shows the need to build an innovation culture framework that includes people, process, data, and technology aspects to evaluate the innovation approach of enterprises. Finally, some implications of working group governance and team leadership are discussed, such as increasing the application of collaboration technologies, the stronger establishment of the virtual team model, and digital leadership orientation. There are ways to promote and strengthen a culture of innovation in IT businesses to reach maturity in digital transformation and how to respond to challenges for faster recovery in today's context. Conclusions: The regression model showed a significant relationship between leadership style and team performance, leadership style and innovation culture, and innovation culture and team performance. The study provided policy recommendations to support leadership style and team performance.