<p><strong>Background:</strong> Innovation is recognised as one of the most important determinant of organisational performance. Yet, the results of studies that investigate the relationship between innovation and organisational performance are inconclusive. The inconsistency has been attributed to a number of factors, which include, among others, the measures used to evaluate organisational performance.</p><p><strong>Aim:</strong> This study was set out to identify, categorise and critically analyse the instruments used to assess organisational performance when investigating the relationship between innovation and organisational performance.</p><p><strong>Setting:</strong> The study focuses on all scientific publications reporting on organisational performance, inclusive of both financial and non-financial indicators of performance, and are not limited to any specific country or industry.</p><p><strong>Methods:</strong> The systematic literature review methodology was used to identify studies which investigated the relationship between innovation and organisational performance. Once identified, articles were analysed on the way organisational performance was measured. Classification was done with reference to financial and non-financial indicators, accounting and market-based, as well as objective and subjective measures.</p><p><strong>Results:</strong> The findings show that profitability, sales growth and return on assets (ROA) are the most preferred accounting-based financial measures of organisation performance. In addition, Tobin’s Q was found to be the most favoured market-based financial measure of organisational performance. The study further reveals that market share, customer satisfaction and productivity are the most popular non-financial-based measures of organisational performance.</p><p><strong>Conclusion:</strong> The use of measures of organisational performance is often left to the discussion of the researcher, which is not implicitly wrong, but does little to contribute to the body of knowledge on this important topic. Researchers are firstly urged to clearly define which aspects of organisational performance they intend to study, secondly to use established instruments or often used indicators of organisational performance, and thirdly to combine both objective and subjective measures of organisational performance. This would allow for researchers to build on the work of other and strengthen the body of knowledge in this area.</p>
The study on which this paper is based examined the effect of transformational and transactional leadership styles as well as the effect of each component of transformational and transactional leadership on innovative behaviour. A sample of 3 180 respondents from 52 South African companies participated in this research. Two main hypotheses and six sub-hypotheses were tested using multiple regression analysis with and without interaction terms. The results indicate that it is useful to utilise both transformational and transactional leadership styles to enhance employees' innovative behaviour. The study substantiated the expected positive relationship between transformational and transactional leadership style and innovative behaviour. Furthermore, the results showed that amongst the components of these leadership styles, inspirational motivation, intellectual stimulation and contingent reward positively influence innovative behaviour. The results showed no relationship between individual consideration, management-by-exception and innovative behaviour. Contrary to expectations, the results revealed a negative relationship between idealised influence and innovative behaviour. Recommendations and suggestions for further research are provided.
Orientation: In an age where subordinate cultural heterogeneity has become the norm, cultural intelligence might assist leaders to improve their effectiveness.Research purpose: This research investigated whether leader cultural intelligence moderated the relationship between leadership style (as represented by empowerment and direction) and leadership effectiveness.Motivation for the study: Although the literature on cultural intelligence has been increasing in quantity, there remained a gap in the understanding of the relationship between leader cultural intelligence, the empowering and directive leadership styles and leadership effectiveness.Research design, approach and method: A quantitative methodology with a cross-sectional survey design was followed. Data were obtained from 1140 staff members employed at 19 South African organisations. Factorial, correlational and moderated multiple regression analyses were performed.Main findings: Although leader cultural intelligence and its dimensions do not moderate the relationship between empowering leadership and leadership effectiveness, they do nonetheless negatively moderate the relationship between directive leadership and leadership effectiveness. This moderation was, however, assessed to be of no practical significance.Practical and managerial implications: As leader cultural intelligence did not act as an important influencer of the relationship between leadership style and leadership effectiveness, it appeared that effective leaders may have used their cultural intelligence to actually guide the selection of an effective leadership style in the first place.Contribution and value add: Being one of the first studies to explore the moderating effect of leader cultural intelligence on the relationship between leadership style and leadership effectiveness, this research has made a valuable contribution to building both the cultural intelligence and leadership knowledge bases.
This paper is an attempt to consolidate the published scientific knowledge about the impact of leadership styles on the relationship between innovation and organisational performance. Concepts, statements and conceptual frameworks were used as structure to analyse the body of scientific knowledge. After consulting 31 major research databases using the systematic literature review methodology, only seven journals articles that examined the link between leadership, innovation and organisational performance were identified. The synthesis of the journal articles revealed (a) that consensus exists among researchers as far as the relevant concepts are concerned; (b) that most agree on the definition of leadership and innovation but that a uniform understanding of what constitutes organisational performance is lacking; and (c) that conceptual models are too simplistic and do not consider mediator variables or multiple financial criteria measures. The findings further reveal that innovation is significantly and positively related to superior organisational performance, and that, although transformational leadership style is significantly and positively related to innovation, transactional leadership style is more appropriate when the aim is to instil a culture of innovation. Transformational leadership style, by contrast, is mostly associated with organisational performance. In addition, the findings further reveal that none of the studies investigate the mediating effect of the nature of innovation (incremental and radical) on the relationship between leadership and organisational performance, and that none of the studies use the objective measures of financial performance such as ROA, ROE, price/earnings (P/E) and Tobin's Q calculated from annual financial reports.
Orientation: To identify and report on cultural intelligence truths.Research purpose: To explore cultural intelligence truths by means of a systematic review of the cultural intelligence literature.Motivation for the study: Cultural intelligence truths must be systemised if the business and academic communities are to derive optimal value from the diverse knowledge base.Research design, approach and method: The research was qualitative in nature, comprising a systematic literature review. The period covered was from 01 January 2002 to 31 May 2015. The final number of included studies was 76, representing 48 different journals. Cultural intelligence hypotheses were identified and thematically categorised. Validated hypotheses constituted truths (i.e. truth statements). Key findings are both reported and commented on.Main findings: Cultural intelligence hypotheses may be classified into 13 separate themes plus a ‘not categorised’ group. In total, 60% of the hypotheses on cultural intelligence have given rise to truth statements. Accordingly, there remains some divide between theorised cultural intelligence relationships and how these have played out under empirical investigation.Practical managerial/implications: Business professionals will find it easier to consume the cultural intelligence literature, thereby facilitating their understanding of how best to leverage the knowledge in equipping the workforce to function optimally in cross-cultural interfaces. Scholars will be better positioned to tailor the focus and structure of cultural intelligence studies going forward.Contribution: Cultural intelligence truths have been systematically identified, organised and reported on.
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