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Transformational leadership and employee voice for product and process innovation in SMEs

Author

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  • Muhammad Athar Rasheed
  • Khuram Shahzad
  • Sajid Nadeem

Abstract

Purpose - This study aims to investigate the impact of transformational leadership on the innovation of small and medium enterprises (SMEs) through employee voice behaviors. Drawing from the upper echelon theory, it is hypothesized that employee voice is the mediating mechanism through which transformational leadership affects the process and product innovation in SMEs. Design/methodology/approach - Data was collected from 169 SMEs of Pakistan through an online self-administered questionnaire. The proposed hypotheses were tested using partial least squares structural equation modeling (PLS-SEM). Findings - Findings confirm that transformational leadership positively affects both process and product innovation in SMEs and employee voice behavior mediates between these relationships. Originality/value - This research contributes to both theoretical and practical domains by providing evidence that encouraging employees to raise their voice positively impacts product and process innovation and transformational leadership is a potential organizational factor to shape employee voice and process and product innovation. To the best knowledge, this is the first study that investigates the mediating role of employee voice between transformational leadership and process and product innovation in SMEs and developing country’s context.

Suggested Citation

  • Muhammad Athar Rasheed & Khuram Shahzad & Sajid Nadeem, 2021. "Transformational leadership and employee voice for product and process innovation in SMEs," Innovation & Management Review, Emerald Group Publishing Limited, vol. 18(1), pages 69-89, March.
    • Handle: RePEc:eme:inmrpp:inmr-01-2020-0007
    DOI: 10.1108/INMR-01-2020-0007
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    Cited by:

    1. Cheffi, Walid & Kaleem Zahir-ul-Hassan, Muhammad & Omer Farooq, Muhammad & Baqrain, Abdelrahman & Mohamed Habib Mansour, Mourad, 2023. "Ethical leadership, management control systems and circular economy in SMEs in an emerging economy, the UAE," Journal of Business Research, Elsevier, vol. 156(C).

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