Effect of entrepreneurial leadership on exploratory innovation – The role of intrinsic motivation and environment dynamism as moderators in the IT sector of Sri Lanka

The confluence of innovative activities and leadership styles significantly influences the trajectory of organizational performance in Sri Lanka's information technology (IT) sector. Understanding the complex interactions between leadership behaviors and innovation is crucial for sustaining development and competitiveness in the face of the sector's rapid technical improvements, globalization, and changing consumer needs. This quantitative research delves into the intricate interplay between entrepreneurial leadership style, which has shown its potential to stimulate innovative thinking and risk-taking behaviors among employees, and exploratory innovation with a moderating effect of intrinsic motivation and environmental dynamism. Utilizing a sample size of 157 participants from the IT sector of Sri Lanka, the findings reveal that entrepreneurial leadership style has a significant positive relationship with explorative innovation. Furthermore, intrinsic motivation is found to be a significant negative moderator between entrepreneurial leadership and exploratory innovation. Environmental dynamism is found to positively moderate the relationship between entrepreneurial leadership and exploratory innovation. These results shed light on the nuanced influences of entrepreneurial leadership style, intrinsic motivation, and environmental dynamism on innovation activities in the IT sector, offering valuable insights for organizational leaders and policymakers seeking to foster a culture of innovation in dynamic environments.