Exploring the Impact of Leadership on Encouraging Innovative Behaviours: An Employee’s Perspective DOI: https://doi.org/10.33093/ijomfa.2025.6.2.14
Article Sidebar
Main Article Content
Abstract
Innovation is crucial in the current business environment amidst uncertainties and heightened competition. The study explored how employees perceive their leaders' behaviour regarding innovations in the service sector. An in-depth interview technique has been employed as part of a qualitative research approach to identifying leaders' behaviours likely to enhance or discourage employees' innovative behaviour. Eight participants with extensive experience in the service sector were selected from various sectors, including consultancy, financial services, and the telecommunications industry in Malaysia. Thematic analysis was used to identify leaders' behaviours that encourage or discourage employees' innovative behaviour at work. The study observed 15 different leader behaviours related to employees' innovative behaviour. Eight behaviours directly drive innovation, five behaviours are indirectly related, and two behaviours hinder employee innovation. The study found that employees' perceptions of innovative role modelling, empowerment, recognition, consultation, development, identifying innovation champions, and rewards positively influence innovation. In contrast, constant monitoring and high workload pressure are seen as obstacles to innovative behaviour. The study contributes to the existing literature by comparing the inventory of leaders' behaviours. It reveals that employees view Corporate Social Responsibility (CSR) positively in terms of innovation, suggesting that further research could explore the magnitude and significance of CSR in various contexts. This study highlights the importance of organisational leaders gaining insight into their employees' perspectives to cultivate idea generation and implementation. When leaders understand their employees' attitudes towards creativity and innovation, they can adjust their leadership style and behaviour to foster a work environment that encourages creativity and innovation.
Article Details
References
Alshawabkeh, I., Ahmad, N. N., Rashid, A. H. A., Panatik, S. A., Al-Rusa, A., & Liyana, A. (2024). The Role of Transformational Leadership and Psychological Empowerment Toward Employee Creativity. Advances in Social Sciences Research Journal, 11(2.2), 299-318. https://doi.org/10.14738/assrj.112.2.16425.
AlAhmari, F. (2022). Innovation leadership in the 21st century. In Leadership in a Changing World-A Multidimensional Perspective. IntechOpen.
Aldabbas, H., Pinnington, A., & Lahrech, A. (2023). The influence of perceived organisational support on employee creativity: The mediating role of work engagement. Current Psychology, 42, 6501–6515. https://doi.org/10.1007/s12144-021-01992-1.
Alharbi, A., Rasmussen, P., & Magarey, J. (2021). Clinical nurse manager's leadership practices in Saudi Arabian hospitals: A descriptive cross-sectional study. Journal of Nursing Management, 29(6), 1454-1464.
Amabile, T. M. (1983). The social psychology of creativity: A componential conceptualisation. Journal of Personality and Social Psychology, 45, 357-376. https://doi.org/10.1037/0022-3514.45.2.357.
Anzola-Roman, P., Garcia-Marco, T., & Zouaghi, F. (2024). The influence of CSR orientation on innovative performance: Is the effect conditioned to the implementation of organisational practices? Journal of Business Ethics, 190(1), 261-278. https://doi.org/10.1007/s10551-023-05406-z.
Balakrishnan, K., Angusamy, A., & Patil, R. G. (2024). Enhancing work performance: The role of communication and leadership styles. Malaysian Journal of Communication, 40(1), 21–35. https://doi.org/10.17576/JKMJC-2024-4001-21.
Bass, B. M. (1985). Leadership and performance beyond expectations. Free Press.
Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the vision. Organisational Dynamics, 18(3), 19–31.
Bastian, E., Piliang, A., & Meutia. (2024). Effect of learning culture and management control system on innovation performance: Evidence from startup companies in Indonesia. Problems and Perspectives in Management, 22(3), 251–262. https://doi.org/10.21511/ppm.22(3).2024.20
Bledow, R., Frese, M., & Mueller, V. (2011). Ambidextrous leadership for innovation: The influence of culture. In Advances in global leadership (pp. 41-69). Emerald Group Publishing Limited. https://doi.org/10.1108/S1535-1203(2011)0000006006.
Bowen, D. E. (2016). The changing role of employees in service theory and practice: An interdisciplinary view. Human Resource Management Review, 26(1), 4–13. https://doi.org/10.1016/j.hrmr.2015.09.002.
Cerne, M., Jaklic, M., & Skerlavaj, M. (2013). Authentic leadership, creativity, and innovation: A multilevel perspective. Leadership, 9(1), 63–85. https://doi.org/10.1177/1742715012455130.
Chemers, M. (2014). An integrative theory of leadership. Psychology Press.
Cheng, C. H., & Osman, Z. B. (2021). Exploring effect of leadership styles on task performance: A conceptual framework. International Journal of Academic Research in Business and Social Sciences, 11(12), 1595-1615.
Coakes, E., & Smith, P. (2007). Developing communities of innovation by identifying innovation champions. The Learning Organization: The International Journal of Knowledge and Organizational Learning Management, 14(1), 74-85. https://doi.org/10.1108/09696470710718366.
Coyle, N., & Tickoo, R. (2007). Qualitative research: What this research paradigm has to offer to the understanding of pain. Pain Medicine, 8(3), 205-206. https://doi.org/10.1111/j.1526-4637.2007.00303.x
De Jong, J. P. J., & Den Hartog, D. N. (2007). How leaders influence employees' innovative behavior. European Journal of Innovation Management, 10(1), 41-64. https://doi.org/10.1108/14601060710720546.
De Jong, J., & Den Hartog, D. (2010). Measuring innovative work behaviour. Creativity and innovation management, 19(1), 23-36.
Drechsler, K., Reibenspiess, V., Eckhardt, A., & Wagner, H. T. (2021). Innovation Champions ' Activities and influences in organisations- A literature Review. International Journal of Innovation Management, 25(06), 2150066.
Duckett, H., & Macfarlane, E. (2003). Emotional intelligence and transformational leadership in retailing. Leadership & Organization Development Journal, 24(6), 309–317.
Eisenberg, J., Post, C., & DiTomaso, N. (2019). Team Dispersion and Performance: The Role of Team Communication and Transformational Leadership. Small Group Research, 50(3), 348-380. https://doi.org/10.1177/1046496419827376.
Fan, J., Fan, Y., He, J., & Dai, H. (2023). How does a good leader–member relationship motivate employees' innovative behavior? Leadership & Organization Development Journal, 44(8), 1016-1036. https://doi.org/10.1108/LODJ-04-2023-0180
Gonlepa, M. K., Dilawar, S., & Amosun, T. S. (2023). Understanding employee creativity from the perspectives of grit, work engagement, person organisation fit, and feedback. Frontiers in psychology, 13, 1012315. https://doi.org/10.3389/fpsyg.2022.1012315
González-Torres, T., Gelashvili, V., Martínez-Navalón, J. G., & Herrera-Enríquez, G. (2023). Organisational culture and climate: New perspectives and challenges. Frontiers in Psychology, 14, 1267945. https://doi.org/10.3389/fpsyg.2023.1267945
Greenleaf, R. K. (1977). Servant leadership: A journey into the nature of legitimate power and greatness. Paulist Press.
Huang, Z., Sindakis, S., Aggarwal, S., & Thomas, L. (2022). The role of leadership in collective creativity and innovation: Examining academic research and development environments. Frontiers in psychology, 13, 1060412.
Hunter, S. T., Thoroughgood, C. N., & Venturo, K. L. (2011). Leading for innovation: Direct and indirect influences. Advances in Developing Human Resources, 13(3), 245–271. https://doi.org/10.1177/1523422311424263.
Ike, P. R., Ezeh, L., & Etodike, C. E. (2017). Employee participation in decision making: A correlate of employee citizenship behaviour and counterproductive workplace behaviour. International journal of academic research in business and social sciences, 7(7), 2222-6990.
Iqbal, A., Ahmad, M. S. & Nazir, T. (2023), Does servant leadership predict innovative behavior above and beyond transformational leadership? Examining the role of affective commitment and creative self-efficacy, Leadership & Organization Development Journal, 44(1), 34-51. https://doi.org/10.1108/LODJ-01-2022-0016.
Jain, P. (2023). "Spiritual leadership and innovative work behavior: the mediated relationship of interpersonal trust and knowledge sharing in the hospitality sector of India", Leadership & Organization Development Journal, 44 (1), 1-17. https://doi.org/10.1108/LODJ-03-2022-0128. Journal of Occupational and organisational psychology, 73(3), 287-302. https://doi.org/10.1348/096317900167038.
Jonsson, T. F., Unterrainer, C. M., & Kahler, H. G. (2020). Do autonomous and trusting hospital employees generate, promote, and implement more ideas? The role of distributed leadership agency. European Journal of Innovation Management, 25(1), 55-72. https://doi.org/10.1108/EJIM-08-2019-0234.
Kennedy, J. C. (2002). Leadership in Malaysia: Traditional values, international outlook. Academy of Management Perspectives, 16(3), 15–26. https://doi.org/10.5465/ame.2002.8540292
Kesting, P., & Ulhoi, J. P. (2010). Employee-driven innovation: Extending the license to foster innovation. Management Decision, 48(1), 65–84. https://doi.org/10.1108/00251741011014463
Khan, H., Rehmat, M., Butt, T. H., Farooqi, S., & Asim, J. (2020). Impact of transformational leadership on work performance, burnout and social loafing: A mediation model. Future Business Journal, 6(40). https://doi.org/10.1186/s43093-020-00043-8
Khan, S., & Mohiya, M. (2020). Determinants of SMEs employees' creativity and their impact on innovation at the workplace. Management Science Letters, 10(16), 3865-3872.
Krasnicka, T., Glod, W., & Wronka-Pospiech, M. (2018). Management innovation, pro-innovation organisational culture and enterprise performance: Testing the mediation effect. Review of Managerial Science, 12, 737–769. https://doi.org/10.1007/s11846-017-0229-0
Kremer, H., Villamor, I., & Aguinis, H. (2019). Innovation leadership: Best-practice recommendations for promoting employee creativity, voice, and knowledge sharing. Business Horizons, 62(1), 65–74. https://doi.org/10.1016/j.bushor.2018.08.010
Lau, C.-M., & Ngo, H.-Y. (2004). The HR system, organisational culture, and product innovation. International Business Review, 13(6), 685–703. https://doi.org/10.1016/j.ibusrev.2004.08.00
Lee, A., Legood, A., Hughes, D., Tian, A. W., Newman, A., & Knight, C. (2020). Leadership, creativity and innovation: A meta-analytic review. European Journal of Work and Organizational Psychology, 29(1), 1–35.
Lee, J., Yun, S., Lee, S., & Lee, J. H. (2019). The curvilinear relationship between self-efficacy and creativity: The moderating role of supervisor close monitoring. Journal of Business and Psychology, 34, 377–388.
Liu, B., Shah, T. A., & Shoaib, M. (2024). Creative leadership, creative mindset and creativity: A self-regulatory focus perspective. Current Psychology, 43, 24375–24389. https://doi.org/10.1007/s12144-024-06066-6
McMahon, S. R., & Ford, C. M. (2013). Heuristic transfer in the relationship between leadership and employee creativity. Journal of Leadership & Organizational Studies, 20(1), 69–83. https://doi.org/10.1177/1548051812465894
Ly, N. B. (2020). Cultural influences on leadership: Western-dominated leadership and non-Western conceptualisations of leadership. Sociology and Anthropology, 8(1), 1–12. https://doi.org/10.13189/sa.2020.080101
Mathias, T., Fertig, M. B., Zancanaro, M., Thibes, R. F., & Hahn, I. S. (2024). Defining innovation: A comprehensive analysis of types, levels, and strategic interactions. IOSR Journal of Humanities and Social Science, 29(9), 28–36. https://www.iosrjournals.org/iosr-jhss/papers/Vol.29-Issue9/Ser-2/E2909022836.pdf
Mehraein, V., Visintin, F., & Pittino, D. (2023). The dark side of leadership: A systematic review of creativity and innovation. International Journal of Management Reviews, 25(4), 740-767. https://doi.org/10.1111/ijmr.12334.
Mehta, R., Dahl, D. W., & Zhu, R. (2017). Social-recognition versus financial incentives? Exploring the effects of creativity-contingent external rewards on creative performance. Journal of Consumer Research, 44(3), 536-553.
Memon, M. A., Thurasamy, R., Ting, H., & Cheah, J. H. (2024). Purposive sampling: A review and guidelines for quantitative research. Journal of Applied Structural Equation Modeling, 9(1), 1-23. https://doi.org/10.47263/JASEM.9(1)01
Miao, Q., Newman, A., & Lamb, P. (2012). Transformational leadership and the work outcomes of Chinese migrant workers: The mediating effects of identification with leader. Leadership, 8(4), 377–395. https://doi.org/10.1177/1742715012444055.
Mikelsone, E., Segers, J. P., & Spilbergs, A. (2022). Governance of web-based idea management system rewards: From the perspective of open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), 97.
Muller, E., & Doloreux, D. (2007). The key dimensions of knowledge-intensive business services (KIBS) analysis: A decade of evolution. Arbeitspapiere Unternehmen und Region (Working Paper No. U1/2007). Retrieved from http://nbn-resolving.de/urn:nbn:de:0011-n-549957
Mulligan, R., Ramos, J., Martín, P., & Zornoza, A. (2021). Inspiriting innovation: The effects of leader-member exchange (LMX) on innovative behavior as mediated by mindfulness and work engagement. Sustainability, 13(10), 5409.
Mumford, M. D., & Licuanan, B. (2004). Leading for innovation: Conclusion, issues, and directions. The Leadership Quarterly, 15(6), 163–171. https://doi.org/10.1016/j.leaqua.2003.12.010.
Mumford, M. D., Medeiros, K. E., & Partlow, P. J. (2012). Creative thinking: Processes, strategies, and knowledge. Journal of Creative Behavior, 46(1), 30-47. https://doi.org/10.1002/jocb.003.
Mutonyi, B. R., Slåtten, T., & Lien, G. (2020). Empowering leadership, work group cohesiveness, individual learning orientation and individual innovative behavior in the public sector: Empirical evidence from Norway. International Journal of Public Leadership, 16(2), 175-197. https://doi.org/10.1108/IJPL-07-2019-0045.
Myers, M.D. and Newman, M. (2007). The qualitative interview in IS research: examining the craft. Information and Organization, 17(1), 2–26. https://doi.org/10.1016/j.infoandorg.2006.11.001.
Newton, S. (2009). Editorial: New directions in leadership. Construction Innovation, 9(2), 129–132. https://doi.org/10.1108/14714170910950786.
Nusair, N., Ababneh, R., & Kyung Bae, Y. (2012). The impact of transformational leadership style on innovation as perceived by public employees in Jordan. International Journal of Commerce and Management, 22(3), 182-201. https://doi.org/10.1108/10569211211260283
Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and policy in mental health and mental health services research, 42, 533–544. https://doi.org/10.1007/s10488-013-0528-y
Patton, M. Q. (2002). Qualitative research and evaluation methods (3rd ed.). Sage.
Qu, S. Q., & Dumay, J. (2011). The qualitative research interview. Qualitative Research in Accounting & Management, 8(3), 238-264. https://doi.org/10.1108/11766091111162070.
Rahimi, S. (2024). Saturation in qualitative research: An evolutionary concept analysis. International Journal of Nursing Studies Advances, 100174. https://doi.org/10.1016/j.ijnsa.2024.100174
Reibenspiess, V., Drechsler, K., Eckhardt, A., & Wagner, H. T. (2018). Enabling innovation champions in organisations: Results of a systematic literature analysis. Proceedings of the 51st Hawaii International Conference on System Sciences. https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1512&context=hicss-51
Rexhepi, G., Kurtishi, S., & Bexheti, G. (2013). Corporate social responsibility (CSR) and innovation – The drivers of business growth? Procedia - Social and Behavioral Sciences, 75, 532–541. https://doi.org/10.1016/j.sbspro.2013.04.058
Roskes, M. (2015). Constraints that help or hinder creative performance: A motivational approach. Creativity and Innovation Management, 24(2), 197–206. https://doi.org/10.1111/caim.12086
Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of Management Journal, 37(3), 580–607. https://doi.org/10.2307/256701
Sengupta, S., Bajaj, B., Singh, A., Sharma, S., Patel, P., & Verma, P. (2023). Innovative work behavior driving Indian startups go global – The role of authentic leadership and readiness for change. Journal of Organizational Change Management, 36(1), 162–179. https://doi.org/10.1108/JOCM-05-2022-0156
Shalley, C. E., Zhou, J., & Oldham, G. R. (2004). The effects of personal and contextual characteristics on creativity: Where should we go from here? Journal of Management, 30(6), 933–958. https://doi.org/10.1016/j.jm.2004.06.007
Shao, Y., Nijstad, B. A., & Tauber, S. (2019). Creativity under workload pressure and integrative complexity: The double-edged sword of paradoxical leadership. Organizational Behavior and Human Decision Processes, 155, 7–19. https://doi.org/10.1016/j.obhdp.2019.01.008
Sharif, S., Tongkachok, K., Akbar, M., Iqbal, K., & Lodhi, R. N. (2024). Transformational leadership and innovative work behavior in three-star hotels: Mediating role of leader-member exchange, knowledge sharing and voice behavior. VINE Journal of Information and Knowledge Management Systems, 54(1), 1–21. https://doi.org/10.1108/VJIKMS-07-2021-0122
Singh, A., & Jha, S. (2024). Strategic leadership and team innovation: A qualitative study from the lens of leader–member exchange. International Journal of Productivity and Performance Management, 73(7), 2254–2283. https://doi.org/10.1108/IJPPM-07-2022-0372
Smith, J., & Lee, K. (2022). A comprehensive review of cross-validation techniques in machine learning model evaluation. Journal of Machine Learning Research, 15, 123–145.
Somech, A., & Drach-Zahavy, A. (2013). Translating team creativity to innovation implementation: The role of team composition and climate for innovation. Journal of Management, 39(3), 684–708. https://doi.org/10.1177/0149206310394187
Sumanth, J. J., Cerne, M., Hannah, S. T., & Skerlavaj, M. (2023). Fueling the creative spark: How authentic leadership and LMX foster employees' proactive orientation and creativity. Journal of Leadership & Organizational Studies, 30(3), 356–374.
Surucu, L., Maslakci, A., & Sesen, H. (2023). Inclusive leadership and innovative work: A moderated mediation model. Leadership & Organization Development Journal, 44(1), 87–102. https://doi.org/10.1108/LODJ-05-2022-0227
Thomas, D. C., & Pekerti, A. A. (2003). Effect of culture on situational determinants of exchange behavior in organizations: A comparison of New Zealand and Indonesia. Journal of Cross-Cultural Psychology, 34(3), 269–281. https://doi.org/10.1177/0022022103034003002
Toor, S.-u.-R., & Ofori, G. (2008). Taking leadership research into the future: A review of empirical studies and new directions for research. Engineering, Construction and Architectural Management, 15(4), 352–371. https://doi.org/10.1108/09699980810886856
Tripp, P. W. (2024). How to encourage employee creativity: A preliminary systematic literature review of organizational resources. Muma Business Review, 8, 067–078. https://doi.org/10.28945/5358
Vasileiou, K., Barnett, J., Thorpe, S., & Young, T. (2018). Characterising and justifying sample size sufficiency in interview-based studies: Systematic analysis of qualitative health research over a 15-year period. BMC Medical Research Methodology, 18, 1–18.
Vroom, V. H., & Yetton, P. W. (1973). Leadership and decision-making. Pittsburgh, PA: University of Pittsburgh Press.
Wei, F., Yuan, X., & Di, Y. (2010). Effects of transactional leadership, psychological empowerment and empowerment climate on creative performance of subordinates: A cross-level study. Frontiers of Business Research in China, 4, 29–46. https://doi.org/10.1007/s11782-010-0002-6
Ye, P., Liu, L., & Tan, J. (2022). Creative leadership, innovation climate and innovation behavior: The moderating role of knowledge sharing in management. European Journal of Innovation Management, 25(4), 1092–1114. https://doi.org/10.1108/EJIM-05-2020-0199
Yesuf, Y. M., Getahun, D. A., & Debas, A. T. (2024). Determinants of employees' creativity: Modeling the mediating role of organisational motivation to innovate. Journal of Innovation and Entrepreneurship, 13(1), 8. https://doi.org/10.1186/s13731-024-00364-w
Yukl, G. (2012). Effective leadership behavior: What we know and what questions need more attention. The Academy of Management Perspectives, 26(4), 66–85. https://doi.org/10.5465/amp.2012.0088
Zhang, A. Y., Tsui, A. S., & Wang, D. X. (2011). Leadership behaviors and group creativity in Chinese organisations: The role of group processes. The Leadership Quarterly, 22(5), 851–862. https://doi.org/10.1016/j.leaqua.2011.07.007