The Interactive Effect of Employee-Involved Governance and CEO Change-Oriented Leadership on Organizational Innovation: A Moderated Mediation Model

Abstract

Previous empirical findings on the effect of employee-involved governance (EIG) on innovation are inconsistent and even contradictory. Based on an interactionist perspective of innovation, we propose that this effect is contingent on CEO change-oriented leadership (COL) and mediated by two distinct innovative processes: exploratory and exploitative innovations. Using multisource data from 161 enterprises, we demonstrated that EIG was positively (negatively) associated with innovative performance when CEO COL was higher (lower). The results also revealed that exploratory and exploitative innovations played different roles in mediating the effects of EIG on innovative performance depending on CEO COL. Specifically, exploratory innovation mediated that effect when CEO COL was high, but exploitative innovation did not. Theoretical and practical implications are discussed.

Mediating effect of organisational innovation in the prediction of change-oriented leadership on organisational performance

“…Precisely, our study extends the established view of change-oriented leadership’s effect on organisational performance, indicating that change-oriented leadership does not only affect organisational performance but also organisational innovation. Furthermore, this work adds empirical evidence to the extant association between on change-oriented leadership and organisational performance (Andersen, 2010; Bergsten et al , 2021; Elkomy et al , 2020; Fan et al , 2020; Ghasemy et al , 2020; Katz et al , 2009; Maechel et al , 2020; Maladzhi, 2015; Øygarden et al , 2020) by proposing and confirming the mediation role of organisational innovation on the relationship between change-oriented leadership and organisational performance. Although prior studies have examined the mediating role of organisational innovation on the effect of various leadership styles on organisational performance (Ebrahimi et al , 2016; Sethibe and Steyn, 2015; Zehir et al , 2012), such studies did examine the mediating effect of organisational innovation along with the path from change-oriented leadership to organisational performance.…”

The Correlation Between Transformational Leadership and Employee Innovation in the Customs Department in the Emirate of Dubai

“…Worker advancement is essential to organizations, particularly in testing conditions as it targets the success of an institution in a dynamic market (Fan et al, 2019;Fakhari, Din & Omar, 2022).…”

“Things have to change!” How and when change-oriented leaders and idea championing employees can address organizational underperformance through performance pressures

“…Faced with the challenges of ever-evolving technologies, hyper-competition, heightened outsourcing and severe uncertainty in their external environments, organizations need dynamic leaders who can act as "agents of change" while also providing "centres of gravity" (Shamir, 1999, p. 51). Such leaders are instrumental to change initiatives (Bergsten et al, 2021;Fan et al, 2020;Neves, 2009) and can create environments that encourage innovation (AlAnazi et al, 2022;Amabile et al, 2004). But such demands remain challenging and traditional two-dimensional leadership models that only refer to task-and relationshiporiented forms of leadership cannot provide comprehensive insights into how leaders deal…”

“…Such leaders are instrumental to change initiatives (Bergsten et al. , 2021; Fan et al. , 2020; Neves, 2009) and can create environments that encourage innovation (AlAnazi et al.…”