Proceedings of The 2nd International Conference on Research in Management
The Impact of Leadership on Innovation in Organizations
Innovation has become a benchmark for development and performance in organizations around the world. Leadership style seems to influence innovation in many activity sectors. Several studies have shown that leadership positively influences organizational innovation (Jung et al., 2003). However, the contextual conditions under which this effect occurs or is highlighted hasn’t been researched thoroughly. Despite the growing interest in the development of innovative technologies, many elements remain unknown about how to best facilitate the innovation process. Through a review of innovation and leadership literature, it would seem that leaders are one of the main driving forces in increasing innovative production.
In this paper, it was examined if there is a relationship between the transformational leadership style, the percentage of innovation spending, and the number of new and improved services that provide insight into the success of innovation in companies operating in the service sector. This paper supplements the literature on transformational leadership and innovation from the analysis performed in previous studies.
Keywords: leadership, innovation, organizations, transformational leadership.