Organizational Innovation
Role Of Leadership And Employees In Organizational Innovation
Organizational success in the current global environment characterized with significant challenges is highly dependent on innovation and creativity. Innovation and creativity contribute to the success of organizational interventions, thereby, contributing to its competitiveness. The current global environment is characterized by rapid adoption of new technologies, reduction in the life cycle of products, and globalization. As such, it implies the need for the organizations to become creative and innovative to compete, survive, lead, and grow in the wake of these challenges. Similarly, significant evidence shows that leadership and the employees play an important role in driving innovation and creativity within the organization. For instance, studies have shown that leadership styles such as transformational and transactional leadership styles, influences innovation, and creativity within the organization positively. However, limited knowledge on the contextual factors under which the effect occurs exists.
Similarly, empirical evidence has that organizational stakeholders play a role in promoting the realization of innovation and creativity objectives within the organization. In specific, the employees play a pivotal role in ensuring the effective adoption of the strategies required for the realization of creativity and innovativeness within the organization. Providing the employees with a working environment that takes into consideration their varied needs, promotes innovation as compared to environments that fail to consider their needs (Hu & Chen, 2013). Therefore, the following analysis provides a proposal for a study that aims at creating an understanding of the role the leadership and employees play in ensuring organizational innovation.
Background
Organizational innovation is among the fundamental sources of value creation that influences its long-term survival in a dynamic business environment. Leaders and other organizational employees play a significant role in influencing the realization of the desired organizational innovation. As stated by Thamrin, (2012) leaders promote innovation and creativity within their organizations by creating an open environment that ensures free sharing of information between its stakeholders. Similarly, empirical evidence points the need for employee motivation for organizational innovation to occur.
Besides, Hu & Chen (2013) showed that the executive management of the organization can promote organizational innovation and creativity by promoting the creation of transformational leadership that recognizes the provision of rewards for improvement and tolerating of mistakes. Scholars such as Phoocharoon (2013) and Thamrin (2012) agree that innovation and creativity within the organization is measured by the successful implementation of new organizational methods of executing various activities. However, Gumusluoglu & Ilsev (2009) argue that the innovation does not have to be a new phenomenon in the world, but to the organization as it promotes the creation of significant opportunities for the organization to implement new, creative, and innovative practices.
Over the recent past, the use of transformational and transactional leadership styles within organizations has gained significant attention from different organizational stakeholders across the world. Significant evidence shows that organizations that use transformational and transactional leadership styles have reported an increase in their performance secondary to their innovation and creativity. Transformational and transactional leadership recognizes the need for the provision of the organizational environment that recognizes the varied needs of the employees and use of collaborative actions, thereby, promotion of innovation and creativity. Innovative organizations enjoy the continued competitiveness of the organization and sustainability of its interventions as there is a continuity in the generation of new organizational ideas. While most consider organizational innovation a broad-spectrum perspective, evidence provided by Thamrin (2012) shows it a personal level initiative. Innovation and creativity within an organization occurs because of the actions and efforts of individuals having expertise experience in specific tasks, thereby, specialization and innovativeness.
Theoretical Foundation
Transformational and transactional leaders have been shown by significant evidence to influence organizational innovation. Such leaders promote innovation and creativity within the organizational context by using intellectual stimulation of the employees and inspirational motivation. Such leaders recognize the fact that motivational theories such as Maslow's hierarchy of needs model underpin the ability of the organizations to achieve their innovation and creativity objectives. According to Phoocharoon (2013), transformational and transactional leaders play a championing role in influencing organizational innovation by building the self-confidence, self-esteem, and self-efficacy of their employees.
According to Hu & Chen (2013), transformational leadership has four basic components that influence organizational innovation and creativity. Among them, include charismatic responsibility in modeling other employees, individualized consideration of organizational stakeholders and factors, the intellectual stimulation of the employees, and inspirational motivation. As such, it becomes evident that there is a strong correlation between the roles of the leadership...
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