The Impact of Leadership on Individual Creativity and Organisational Innovation

René Magritte, "Les mémoires d'un saint", 1960,
The Menil Collection, Houston
 © ADAGP, Paris 2016
Excerpts from the Indian Journal of Science and Technology, Volume 8, Issue 24, September 2015

The Impact of Transformational Leadership

The purpose of this study is to analyze the causal relationship between individual creativity and organizational creativity by focusing on transformational  and emotional leadership amid various factors that bring about innovation to organizations. The results of the analysis show that transformational leadership  had a significant effect on individual creativity, while individual creativity had a significant effect on organizational innovation. While emotional leadership, which, of late, has been receiving growing attention, did not have a significant positive effect on individual creativity, it did have a significant positive effect  on organizational innovation. In particular, the core factor that was responsible for transformational leadership to affect individual creativity was charisma, and the core factor that was responsible for emotional leadership to affect organizational innovation was self-management skills. This may have reflected the leader's personal emotions and affective characteristics as well as robust and thorough self-management principles. It is, therefore necessary to focus more on this fact.

Towards horizontal, decentralised and networked organizations

Many scholars describe future societies as volatile, uncertain, complex, and ambiguous, and predict that organizations will become more horizontal, decentralized, and networked. They also predict that virtual characterization of organizations will further intensify owing to technological development. Further, in order to survive in a rapidly changing competitive environment, firms are making substantial efforts to produce better business results by efficiently managing their human resources. In the current environment, the significance of organizational innovation is gradually increasing as a precondition and key factor for such organizations to enhance their competitiveness. As an increasing amount of attention is being paid to organizational innovation, there have been many studies stressing on the factors that affect organizational innovation.

In order to promote change in organizations, it is necessary to induce creativity and organizational innovative behavior from members and reinforce the competences of the organization in general. Therefore, the leader of an organization must try to solve problems arising from external causes by improving the internal environment, and strive to introduce effectual feelings and emotions within the organization in order to tackle such problems.

However, feelings and emotions within the organization are considered far from being intellectual and rational, and thus have not received much attention for a long time. [...]

First, this study will examine how transformational leadership and emotional leadership affect individual creativity, and whether the results are consistent with prior theories. Second, it will examine whether individual creativity has a direct effect on organizational innovation by comparing itself with prior theories. Finally, it will examine whether emotional leadership, which has been gaining growing attention recently, has a direct effect on organizational innovation.

Various forms of leadership


Vertical Leadership

Typically, leadership is defined as “the process by which the leader guides the members of the organization to complete their goals”. The process of accomplishing the role and objectives of the leader is reflected in the topdown method enforcing influence over employees such that the leader accomplishes the desired results. This is  traditionally referred to as vertical leadership, which took up most of the research on leadership in the past [...]

Transformational Leadership

Transformational leadership is the process of seeking general objects for change through mutual communion between the leader and followers, the capability that affects values, attitudes, beliefs, and behaviors of others to accomplish the mission and objectives of an organization and it motivates followers to fulfill great desires of selfrealization and accomplish ideal objectives beyond the interaction with the followers.Transformational leadership indicates how the leader provides the direction for the organization, sets conditions for organizational members to be involved in accomplishing the goals, systemizes changes, and manages processes. According to Burns, who first conceptualized the term, transformational leadership is contradictory to transactional leadership. While the former appeals to ideal values that are high dimensional and motivates followers, the latter induces followers’ agreement by mobilizing the means that are related to their interests such as wages or promotions. Tichy et al. argued that transformational leaders make organizational members perceive the need for change, create new visions, and systemize the changes to achieve transformation of the organization.

Bass et al. classified transformational leadership into four components: first, the idealized influence (or charisma) of leaders serves to bring about trust and affective assimilation of the members toward the leader; second, inspirational motivation provides the symbolism and affective appeal for goal achievement; third, individualized consideration refers to the humane treatment of subordinates and the provision of learning opportunities for growth; and fourth, intellectual stimulation raises questions about conventional mindsetsand customs and recommends doing away with them. These four components are used as measurement items of the surveys in this study.

Emotional Leadership


The definitions of emotional leadership that are, of late, been receiving much attention are as follows: Salovey et al. defined emotional leadership as the ability to effectively express how one assesses one’s emotions or those of others, effectively suppress and control one’s emotions or those of others, and utilize these emotions to plan and accomplish one’s life goals. Wong et al. defined the term as the ability to precisely understand one’s emotions and perceive the emotions of others, using their emotional information in individual performance and constructive activities, and representing individual emotions as suitable behaviors according to given situations. Goleman et al. defined emotional leadership as the ability to clearly understand and the ability to effectively manage one’s emotions at the individual level, to clearly understand the emotions of others, and to effectively manage others’ emotions at the social level. [...]

Causal Analysis


Creativity, Leadership, Innovation (causal links)

To analyze the effects of Transformational leadership and Emotional leadership on Individual Creativity and Organizational Innovation,  this study presented the following research model and research hypotheses.

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