The influence of transformational leadership on product innovations among small business

Innovation has been associated with various positive organizational outcomes such as organizational performance, improved efficiency and productivity and increased organizational effectiveness. Innovation among small businesses is of a greater importance as their sustainability relies on their conti...

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Bibliographic Details
Main Authors: Abdullah, Nor Hazana, Shamsuddin, Alina, Wahab, Eta
Format: Conference or Workshop Item
Published: 2012
Subjects:
Online Access:http://eprints.uthm.edu.my/3503/
http://eprints.uthm.edu.my/3503/1/MGT098.pdf
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Summary:Innovation has been associated with various positive organizational outcomes such as organizational performance, improved efficiency and productivity and increased organizational effectiveness. Innovation among small businesses is of a greater importance as their sustainability relies on their continuous ability to innovate. However, majority of existing studies focused on the one-dimensional effect of transformational leadership on organizational innovation. In order to bridge this gap, this study would investigate the multidimensionality of transformational leadership by examining the effect of its dimensions on product innovation. Thirty-two small businesses participated in a cross-sectional survey to yield a return rate of 80%. Contrary to previous findings, transformational leadership had no significant effect on product innovation. However, Individualized Consideration has significant influence on incremental improvements and additional to product families while Intellectual Stimulation is a significant predictor of incremental improvements and new core products. The results indicate the need to further investigate the complex dynamics of leadership-innovation relationship.