The mediating effects of innovation culture on leadership traits, leadership style, and firm performance
AUSTRALIAN JOURNAL OF BASIC AND APPLIED SCIENCES · 2019
Purpose -The purpose of this paper is to examine the association of the four main constructs; leadership traits towards innovation, leadership style, innovation culture, and firm performance.In particular, this paper focuses on three sectors comprising of construction, manufacturing an information technology.Additionally, this paper attempts to examine the role of innovation culture in mediating the relationship between leadership traits, leadership style and firm performance.Design/methodology/approach -The conceptual model of this study incorporating tow construct of leadership including leadership traits towards innovation and leadership style along with constructs addressing the role of innovation culture as a mediating variable and firm performance.Quantitative date was collected from a questionnaire survey of 150 design professionals working in constructions, manufacturing and information technology firm.Specifically, Component Factor Analysis (CFA) conducted to affirm the factors underlying each construct.To validate the data, face validate was undertaken to determine the suitability of the instrument and pre-tested before the distribution to respondents.The Cronbach Alpha for each constructs were above 0.700 which means that it is internally consistent.Findings -The results confirmed that there is a positive correlation between leadership traits towards innovation and leadership style which means that leadership traits impact leadership style.Additionally, the study generated positive relationship between leadership traits towards innovation and innovation culture, and positive relationship between leadership style and innovation culture.Furthermore, it was found that leadership traits towards innovation and leadership style directly influence firm performance.Finally, innovation culture mediates the relationship between leadership towards innovation and firm performance as well as leadership style and firm performance.Originality/value -This study presents an important developed model that tested the effect of leadership and innovation on firm performance which help firms to improve knowledge and enhance business performance.