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The impact of leadership on small business innovativeness

Author

Listed:
  • Dunne, Timothy C.
  • Aaron, Joshua R.
  • McDowell, William C.
  • Urban, David J.
  • Geho, Patrick R.

Abstract

Innovation is a fundamental requisite for small firms to achieve long-term viability. While relevant literature highlights the importance of leadership within small firms in order to establish and foster a climate conducive for innovation, evidence linking specific leadership attributes with innovation is lacking. This study examines the impact of the individual entrepreneur on fostering new product innovation within firms. An analysis of the responses collected from entrepreneurs indicates that leadership style, negotiation style and organizational efficacy each affect new product innovation. Specifically, we find evidence to support the idea that small business leaders who are inspirational, who negotiate competitively, and who lead efficacious organizations establish environments that are more likely to yield new product innovations.

Suggested Citation

  • Dunne, Timothy C. & Aaron, Joshua R. & McDowell, William C. & Urban, David J. & Geho, Patrick R., 2016. "The impact of leadership on small business innovativeness," Journal of Business Research, Elsevier, vol. 69(11), pages 4876-4881.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:11:p:4876-4881
    DOI: 10.1016/j.jbusres.2016.04.046
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    References listed on IDEAS

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    7. AlNuaimi, Bader K. & Singh, Sanjay Kumar & Harney, Brian, 2021. "Unpacking the role of innovation capability: Exploring the impact of leadership style on green procurement via a natural resource-based perspective," Journal of Business Research, Elsevier, vol. 134(C), pages 78-88.
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    9. Iuliia S. Pinkovetskaia & Igor V. Balynin, 2018. "Structure of Small and Medium-Sized Business- Results of Total Statistic Observations in Russia," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 14(1), pages 143-158.
    10. Cheng, Cong & Yang, Monica, 2019. "Creative process engagement and new product performance: The role of new product development speed and leadership encouragement of creativity," Journal of Business Research, Elsevier, vol. 99(C), pages 215-225.
    11. Parast, Mahour Mellat & Safari, Arsalan, 2022. "Enhancing the quality and competitiveness of small businesses: A pooled cross-sectional analysis," International Journal of Production Economics, Elsevier, vol. 246(C).
    12. Carlos M. Jardon & Xavier Martínez-Cobas, 2019. "Leadership and Organizational Culture in the Sustainability of Subsistence Small Businesses: An Intellectual Capital Based View," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    13. Mohammad Shamsul Hoque & Nazrul Islam, 2022. "Leadership Behaviors of Women Entrepreneurs in SME Sector of Bangladesh," Businesses, MDPI, vol. 2(2), pages 1-18, May.
    14. Chen, Xi & Zhang, Stephen X., 2024. "Too much of two good things: The curvilinear effects of self-efficacy and market validation in new ventures," Journal of Business Research, Elsevier, vol. 183(C).
    15. Carlos M. Jardon & Xavier Martinez-Cobas, 2022. "Leadership and Marketing Capabilities in Small Businesses of Subsistence Marketplaces," SAGE Open, , vol. 12(2), pages 21582440221, April.
    16. Abiodun Babatunde ONAMUSI, 2020. "Strategic Response Capability And Firm Competitiveness: How Omoluabi Leadership Makes A Difference," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(4), pages 23-37, December.
    17. Ansita Aggarwal & Harold Kent Baker & Nisarg A. Joshi, 2025. "Organizational Innovation as Business Strategy: A Review and Bibliometric Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 6550-6576, June.
    18. Kromidha, Endrit & Li, Matthew C., 2019. "Determinants of leadership in online social trading: A signaling theory perspective," Journal of Business Research, Elsevier, vol. 97(C), pages 184-197.
    19. 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.
    20. Sharmina Afrin & Mohammad Shamsul Hoque & Bina Akter, 2024. "Women’s Leadership Development Through Entrepreneurship in Bangladesh," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(2), pages 208-240, May.
    21. McDowell, William C. & Peake, Whitney O. & Coder, LeAnne & Harris, Michael L., 2018. "Building small firm performance through intellectual capital development: Exploring innovation as the “black box”," Journal of Business Research, Elsevier, vol. 88(C), pages 321-327.

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