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CEOs' Leadership Styles and Managers' Innovative Behaviour: Investigation of Intervening Effects in an Entrepreneurial Context

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  • Jae Hyeung Kang
  • George T. Solomon
  • David Y. Choi

Abstract

type="main"> We examine the relationships and intervening mechanisms between founding CEOs' transformational/transactional leadership and the innovative behaviour of managers. We develop and test our hypotheses on a sample of 39 participating CEOs and 105 managers with the use of a multilevel structural equation model. The results show that both transformational and transactional leadership on the part of the CEO relate positively to managers' innovative behaviour. We also discover that firm's innovative climate mediates the relationship between transformational leadership and innovative behaviour. However, we fail to find the mediating effect of innovative climate between transactional leadership and innovative behaviour. Our findings contribute to an improved understanding of how founding CEOs' different leadership styles affect employees' innovative behaviour in start-ups and to what extent the innovative climate influences the relationship.

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  • Jae Hyeung Kang & George T. Solomon & David Y. Choi, 2015. "CEOs' Leadership Styles and Managers' Innovative Behaviour: Investigation of Intervening Effects in an Entrepreneurial Context," Journal of Management Studies, Wiley Blackwell, vol. 52(4), pages 531-554, June.
    • Handle: RePEc:bla:jomstd:v:52:y:2015:i:4:p:531-554
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    References listed on IDEAS

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    1. N. Sharon Hill & Myeong-Gu Seo & Jae Hyeung Kang & M. Susan Taylor, 2012. "Building Employee Commitment to Change Across Organizational Levels: The Influence of Hierarchical Distance and Direct Managers' Transformational Leadership," Organization Science, INFORMS, vol. 23(3), pages 758-777, June.
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    1. Kang, Jae Hyeung & Matusik, James G. & Kim, Tae-Yeol & Phillips, J. Mark, 2016. "Interactive effects of multiple organizational climates on employee innovative behavior in entrepreneurial firms: A cross-level investigation," Journal of Business Venturing, Elsevier, vol. 31(6), pages 628-642.
    2. Rudic, Biljana & Hubner, Sylvia & Baum, Matthias, 2021. "Hustlers, hipsters and hackers: Potential employees’ stereotypes of entrepreneurial leaders," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    3. Seçil Bayraktar, 2016. "Do Entrepreneurs Really Create Entrepreneurial Cultures? When Intentions do not Match Actions," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(2), pages 79-98.
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    5. Gayoung Kim & Woo Jin Lee, 2021. "The Venture Firm’s Ambidexterity: Do Transformational Leaders Boost Organizational Learning for Venture Growth?," Sustainability, MDPI, vol. 13(15), pages 1-15, July.
    6. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    7. Charlotta Sirén & Vivianna Fang He & Henrik Wesemann & Zoe Jonassen & Dietmar Grichnik & Georg von Krogh, 2020. "Leader Emergence in Nascent Venture Teams: The Critical Roles of Individual Emotion Regulation and Team Emotions," Journal of Management Studies, Wiley Blackwell, vol. 57(5), pages 931-961, July.
    8. Constantin Bratianu & Dan Florin Stanescu & Rares Mocanu & Ruxandra Bejinaru, 2021. "Serial Multiple Mediation of the Impact of Customer Knowledge Management on Sustainable Product Innovation by Innovative Work Behavior," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    9. Elizabeth Long Lingo, 2020. "Entrepreneurial Leadership as Creative Brokering: The Process and Practice of Co‐creating and Advancing Opportunity," Journal of Management Studies, Wiley Blackwell, vol. 57(5), pages 962-1001, July.
    10. Yanchun Zhang & Junwei Zheng & Amos Darko, 2018. "How Does Transformational Leadership Promote Innovation in Construction? The Mediating Role of Innovation Climate and the Multilevel Moderation Role of Project Requirements," Sustainability, MDPI, vol. 10(5), pages 1-19, May.
    11. Wang, Liwen & Zhao, Jane Zheng & Zhou, Kevin Zheng, 2018. "How do incentives motivate absorptive capacity development? The mediating role of employee learning and relational contingencies," Journal of Business Research, Elsevier, vol. 85(C), pages 226-237.
    12. Jeffrey M. Pollack & Jon C. Carr & Andrew C. Corbett & Crystal L. Hoyt & Franz W. Kellermanns & Bradley L. Kirkman & Corinne Post, 2020. "Contextual and Interactional Approaches to Advancing Leadership and Entrepreneurship Research," Journal of Management Studies, Wiley Blackwell, vol. 57(5), pages 915-930, July.
    13. Busola Oluwafemi, Tolulope & Mitchelmore, Siwan & Nikolopoulos, Konstantinos, 2020. "Leading innovation: Empirical evidence for ambidextrous leadership from UK high-tech SMEs," Journal of Business Research, Elsevier, vol. 119(C), pages 195-208.
    14. Muhammad Shahid & Shafaq Chaudhry & Muhammad Bilal & Hina Amber & Shoaib Aslam & Shumaila Malik & Khuram Shahzad, 2022. "The Link Between Team Identification, Entrepreneurial Orientation, and Innovative Work Behavior and Its Dimensions in the Context of Pakistan," SAGE Open, , vol. 12(1), pages 21582440221, March.
    15. Agarwal Ruchi & Gupta Babeet, 2021. "Innovation and Leadership: A Study of Organizations Based in the United Arab Emirates," Foundations of Management, Sciendo, vol. 13(1), pages 73-84, January.
    16. Kassotaki, Olga, 2019. "Explaining ambidextrous leadership in the aerospace and defense organizations," European Management Journal, Elsevier, vol. 37(5), pages 552-563.
    17. Bruce Gashema & Yongqiang Gao, 2018. "Strengthening Managerial Innovation Behavior in the SMEs: The Role of CEO Transformational Leadership, Cross-Functional Integration and Innovation Culture," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 7(3), pages 36-56, July.

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