The roles of CEO transformational leadership and organizational factors on product innovation performance
European Journal of Innovation Management
ISSN: 1460-1060
Article publication date: 18 September 2017
Issue publication date: 8 May 2018
Abstract
Purpose
The purpose of this paper is to examine the direct and indirect effects of CEO transformational leadership on product innovation performance. This research investigates the mechanism between CEO transformational leadership and product innovation performance, to understand the process through which transformational CEOs exert their influence.
Design/methodology/approach
This study is a quantitative research. Data were collected from 269 manufacturing firms in Thailand through a mail survey. This research applied a two-step structural equation modeling process.
Findings
The results indicate that CEO transformational leadership indirectly affects product innovation performance through an innovation culture, organizational learning, and the new product development (NPD) process. CEO transformational leadership has a strong effect on innovation culture and organizational learning. Organizational learning is strongly associated with the NPD process, which significantly leads to product innovation performance. By integrating the knowledge of leadership and operations management fields, this study helps extend the understanding of how leaders at the top of an organization influence the NPD process and product innovation outcomes.
Practical implications
For practical implications to be more effective, CEOs focusing on product innovation should develop their skills and behaviors of transformational leadership to foster innovation culture and organizational learning, which in turn will affect product innovation performance.
Originality/value
This study makes a contribution to the literature by filling the research gaps proposed by several prior studies and offering a theoretical framework of the relationship between CEO transformational leadership and product innovation performance.
Keywords
Citation
Sattayaraksa, T. and Boon-itt, S. (2018), "The roles of CEO transformational leadership and organizational factors on product innovation performance", European Journal of Innovation Management, Vol. 21 No. 2, pp. 227-249. https://doi.org/10.1108/EJIM-06-2017-0077
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited