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

2021 ◽  
Vol 18 (1) ◽  
pp. 69-89
Author(s):  
Muhammad Athar Rasheed ◽  
Khuram Shahzad ◽  
Sajid Nadeem

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.

2019 ◽  
Vol 22 (4) ◽  
pp. 639-659 ◽  
Author(s):  
Elisangela Lazarou Tarraço ◽  
Roberto Carlos Bernardes ◽  
Felipe Mendes Borini ◽  
Dennys Eduardo Rossetto

Purpose Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects. Design/methodology/approach The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the authors surveyed two to five directors or C-level executives from innovation, R&D, engineering, product development and projects. the authors used structural equation modeling for analysis. Findings The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities. Practical implications The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need be reverted in headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies. Originality/value In authors’ view, this study contributes to the literature in three main areas: the evolutionary process of innovation capability in subsidiaries, the reverse innovation debate and the discussion of subsidiaries’ initiatives.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saira Begum ◽  
Enjun Xia ◽  
Fayaz Ali ◽  
Usama Awan ◽  
Muhammad Ashfaq

PurposeThe aims of this study were three-fold: to determine the impact of green transformational leadership on creative process engagement, green product innovation and green process innovation; to examine the association of creative process engagement with green product and process innovation and to identify the mediating influence of creative process engagement in the association between green transformational leadership and green process and product innovation.Design/methodology/approachData was collected through a survey questionnaire from 291 middle- and lower-level managers and employees through simple random sampling in four high-tech manufacturing industries situated in Beijing, Shanghai and Shenzhen in China. We examined the data through structural equation modeling using partial least squares to test the study hypotheses.FindingsThe findings unveiled that green transformational leadership and creative process engagement positively influence green product innovation and green process innovation. Similarly, green transformational leadership is positively linked with creative process engagement. The findings further revealed that creative process engagement mediates the impact of green transformational leadership on green process and product innovation. Hence, our findings provide strong support for the role of green transformational leadership and creative process engagement in improving green process and product innovation.Research limitations/implicationsOur sample is limited to China and collected from high-tech manufacturing industries.Practical implicationsDrawing on the componential theory of creativity, the authors suggest that organizational leaders, specifically those who practice green transformational leadership, should increase creative process engagement among subordinates, as it is a crucial intangible resource for green process and product innovation.Social implicationsWe suggest that a combination of green transformational leadership and creative process engagement improves green process and product innovation as well as the environmental performance of a business by eliminating all forms of hazardous material and waste.Originality/valueThis work is one of the earliest empirical studies to evaluate the influence of green transformational leadership on fostering green product and process innovation and the mediating impact of creative process engagement on the linkage among green transformational leadership, green product and process innovation within the manufacturing context.


2020 ◽  
Vol 24 (10) ◽  
pp. 2513-2530
Author(s):  
Cristina Doritta Rodrigues ◽  
Felipe Mendes Borini ◽  
Muhammad Mustafa Raziq ◽  
Roberto Carlos Bernardes

Purpose This study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development (R&D) capacity. Furthermore, it examines whether these relationships are mediated by subsidiary product and process innovation, and whether institutional distance plays a moderating role in the relationship between subsidiary innovation and R&D capacity. Design/methodology/approach The authors draw on survey data from 130 foreign subsidiaries operating in Brazil and test their model using variance-based structural equation modeling. Findings Results suggest that subsidiary (product and process) innovation fully mediates the relationships between: subsidiary external embeddedness and R&D capacity; and institutional distance and subsidiary R&D capacity, such that the relationship is positive in case of the former and negative in case of the latter. The relationship between subsidiary product and process innovation and R&D capacity is positive and stronger at lower levels of institutional distance. Originality/value The research ignores the underlying mechanisms of the external embeddedness and institutional distance relationship with subsidiary R&D capacity. Furthermore, institutional distance based on formal governance aspects and their impacts on subsidiary innovation and R&D capacity are rarely investigated. This paper contributes with regard to these aspects.


Given the key role of organizational factors for improving firm’s innovation capability, the purpose of this study is to explore the level of influence of organizational factors namely transformational leadership (TL), human resource management (HRM) practice and collaborative culture on two aspects of organizational innovation capability namely product and process innovation. The paper has developed a proposal research model and applied Structural Equation Modeling (SEM) to test research hypotheses using data collected from 168 participants in 51 Vietnamese firms. The findings of this study confirm the significant impacts of key organizational factors on firm’s capabilities for product and process innovation. Especially, the empirical findings reveal that TL has a greater impact on process innovation. In contrast, collaborative culture has more significant influence on product innovation. The findings of this study have significantly contributed to increasing the insight of the link between key organizational factors and specific aspects of innovation capability. Moreover, it provides a specific and effective pathway for Vietnamese firms to pursuit and foster each specific aspect of organizational capability for innovation. Keywords: Transformational Leadership, HRM Practice, Collaborative Culture, Product Innovation, Process Innovation, Innovation Capability


2017 ◽  
Vol 117 (1) ◽  
pp. 50-67 ◽  
Author(s):  
Shanshan Zhang ◽  
Zhiqiang Wang ◽  
Xiande Zhao ◽  
Min Zhang

Purpose The purpose of this paper is to empirically investigate the effects of institutional support on product and process innovation and firm performance and describe how dysfunctional competition influences relevant outcomes. Design/methodology/approach This study develops a research model based on institution-based view and tests it using structural equation modeling and empirical data collected from 300 manufacturers in China. Findings The results show that institutional support positively affects product and process innovation and firm performance. Both product and process innovation improve firm performance. The findings reveal that dysfunctional competition significantly reduces the positive effects of institutional support on product and process innovation but leaves the effects of institutional support and product and process innovation on firm performance unaffected. Originality/value This study contributes to innovation literature by providing insights into the impact of China’s institutional environment on manufacturing firms’ product and process innovation decisions. The findings also contribute to institution-based view literature by providing empirical evidence on the joint effects of institutional support and dysfunctional competition on product and process innovation and firm performance. This study can help manufacturers in China take advantage of institutional environment and adjust product and process innovation decisions accordingly.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kuan-Yang Chen ◽  
Levent Altinay ◽  
Po-Yuan Chen ◽  
You-De Dai

Purpose The purpose of this paper is to examine the relationship between the attributes of market knowledge (depth/breadth) and particular types of (process/product) innovation. The mediating mechanism of ambidextrous (exploratory/exploitative) capabilities is also investigated. Design/methodology/approach Data from 153 travel agencies from two phases of data collection in Taiwan were analyzed using the structural equation modeling method. Findings Market knowledge depth directly and positively impacts product and process innovation. Market knowledge breadth indirectly and positively impacts product and process innovation. Ambidextrous capabilities affect process and product innovation and mediate the effect of market knowledge breadth on the two innovations. Research limitations/implications This study provides different theoretical views, such as dynamic capability and organizational learning, to supplement the explanation of knowledge-based theory in the relationship between market knowledge and innovation. Practical implications This study encourages firms to accumulate market knowledge depth and breadth and facilitate ambidextrous capabilities for innovation. Originality/value Seldom has research explored the relationships between the attributes of market knowledge and types of innovation simultaneously to extend the input-process-output context. This study has done so and forwards the possibility that ambidextrous capability is critical mechanism.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bahadur Ali Soomro ◽  
Maqsood Memon ◽  
Naimatullah Shah

PurposeIn today's world, employee voice has become an important factor in resolving organizational issues and making innovativeness. Therefore, this study proposes to investigate the paternalistic leadership style, employee voice and creativity among entrepreneurs of Pakistan.Design/methodology/approachThis study employs a cross-sectional study design in which a survey questionnaire is employed to collect the data from the respondents. After data cleaning and screening, in total 416 suitable samples are proceeded for data analysis.FindingsStructural equation modeling findings underlined as a positive and significant relationship of moral leadership with employee voice. Hence, this study found an insignificant relationship of authoritarian, benevolent leadership with employee voice. Further, the study also finds a positive and significant association between employee voice and creativity.Practical implicationsThis study may offer a thoughtful and systematic approach to employee voice and creativity for resolving organizational issues through recommendations/opinions of employees. This study may be helpful for addressing issues by bringing out creativity and innovation to achieve organizational goals and objectives.Originality/valueThe study is the first to investigate the impact of paternalistic leadership style on employee voice. Besides, it examines the influence of employee voice on creativity among entrepreneurs of Pakistan.


2018 ◽  
Vol 67 (9) ◽  
pp. 1510-1525 ◽  
Author(s):  
Sriji Edakkat Subhakaran ◽  
Lata Dyaram

Purpose Despite the increasing prominence of employee voice in organizational innovation and productivity, employees continue to struggle to influence matters that affect them at work. The purpose of this paper is to model work group context and manager behavior as the predictors of employee upward voice. Further, a mediating role of employee psychological safety is examined in this link. Design/methodology/approach With data from 575 employees representing various technology firms in India, the authors test the hypothesized relationships using covariance-based structural equation modeling. Findings Results indicate coworkers upward voice and manager pro-voice behavior to significantly impact employee upward voice with a mediating impact of psychological safety. This implies that perceived psychological safety plays a significant role in explaining the impact, coworkers and manager behavior would have on regulating employee upward voice. Originality/value This study contributes to the employee voice literature from an Indian context, where upward communication is culturally discouraged.


2015 ◽  
Vol 18 (3) ◽  
pp. 355-379 ◽  
Author(s):  
Ghasem Shiri ◽  
Loïc Sauvée ◽  
Zam-Zam Abdirahman

Purpose – The purpose of this paper is to study the impact of networks diversity on innovation activity of firms. It aims to review the structural issue in innovation networks and to distinguish different structures of networks for product and process innovation through an empirical research. Design/methodology/approach – Using a data set of 348 European agri-food firms, the authors study the impact of bridge and redundant ties on product and process innovation of firms. This is an empirical research based on an online survey in five European countries. Findings – The finding shows that bridge ties (measured by the number of heterogeneous networks in which firm participate) always facilitate product innovation in firms. The authors found also that a high number of heterogeneous ties in term of partners (simultaneous presence of redundant and non-redundant ties) motivate both product and process innovation in firms. Furthermore, the authors found a positive impact of network competence on process innovation. Research limitations/implications – The measures of bridge ties and redundant ties are indirect measures. This choice is a willing choice. Direct measurement of bridge and redundant ties always requires in-depth interviews with firms managers and thereby are limited by the number of observations. Originality/value – Research on innovations networks are dominated by case studies and researches with limited number of observations. Studying the networking behaviour, particularly the tie selection, of a wide range of firms brings additional knowledge in this field of research.


2018 ◽  
Vol 41 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Taghrid S. Suifan ◽  
Ayman Bahjat Abdallah ◽  
Marwa Al Janini

Purpose The purpose of this paper is to examine the effect of transformational leadership on employees’ creativity in the Jordanian banking sector through the mediating effect of perceived organizational support. Design/methodology/approach The study is based on survey data collected from 369 employees working in Jordanian banks. Validity and reliability analyses were performed, and direct and indirect effects were tested using structural equation modeling. Findings The results indicate that transformational leadership positively affects some dimensions of employees’ creativity and perceived organizational support. However, perceived organizational support is found to not be significantly related to some dimensions of employees’ creativity. Additionally, the mediating effect of perceived organizational support on the relationship between transformational leadership and some dimensions of employees’ creativity is found to not be significant. Originality/value This paper is one of the first to examine the relationship between transformational leadership and employees’ creativity through perceived organizational support, especially in an Arab country and in the banking sector.


Sign in / Sign up

Export Citation Format

Share Document