Does transformational leadership facilitate technological innovation? The moderating roles of innovative culture and incentive compensation

The present research investigates the relationships between SBU-level transformational leadership and technological innovation, as well as the moderating effects of innovative culture and incentive compensation. Paired data were gathered from 102 senior managers and 258 employees in 102 Taiwanese st...

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Bibliographic Details
Published in:Asia Pacific journal of management 2012-06, Vol.29 (2), p.239-264
Main Authors: Chen, Mavis Yi-Ching, Lin, Carol Yeh-Yun, Lin, Hsing-Er, McDonough, Edward F.
Format: Article
Language:English
Subjects:
Behavior
Business and Management
Compensation
Competitive advantage
Corporate culture
Incentives
Innovations
Leadership
Management
Management theory
Manufacturers
Manufacturing
Organization theory
Strategic business units
Studies
Transformational leadership
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Summary:The present research investigates the relationships between SBU-level transformational leadership and technological innovation, as well as the moderating effects of innovative culture and incentive compensation. Paired data were gathered from 102 senior managers and 258 employees in 102 Taiwanese strategic business units (SBUs). The results indicate that transformational leadership behaviors promote technological innovation at the SBU level. Interestingly, a stronger innovative culture is a substitute for transformational leadership behavior for facilitating technological innovation. In addition, financial-incentive adoption neutralizes the relationship between transformational leadership and technological innovation.
ISSN:0217-4561
1572-9958
DOI:10.1007/s10490-012-9285-9