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Leadership, communication and innovation

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  • Bel, Roland
  • Smirnov, Vladimir
  • Wait, Andrew

Abstract

We study the interplay between communication, leadership attributes and the probability of successful innovation. Although a firm requires both strong leadership and sufficient communication to overcome inertia, we posit that frequent communication – particularly amongst strong managers and in larger firms – can cause leaders to pull the firm in different directions, resulting in disagreement and a failure to successfully innovate. Using a uniquely detailed establishment-level data set we find that, on their own, firm size, regular communication and result-oriented leadership are all positively associated with innovation. However, as predicted by our model, the use of frequent communication in successfully innovating firms is moderated: (i) when leaders tend to be strongly focussed on results; and (ii) in larger firms.

Suggested Citation

  • Bel, Roland & Smirnov, Vladimir & Wait, Andrew, 2015. "Leadership, communication and innovation," Working Papers 2015-22, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2015-22
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    References listed on IDEAS

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    Cited by:

    1. Bel, By Roland & Smirnov, Vladimir & Wait, Andrew, 2018. "Managing change: Communication, managerial style and change in organizations," Economic Modelling, Elsevier, vol. 69(C), pages 1-12.

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    Keywords

    Innovation; Communication; Leadership: Inertia;
    All these keywords.

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