Towards Understanding the Direct and Indirect Effects of Transformational Leadership on Firm Innovation

40 Pages Posted: 31 Jul 2006

See all articles by Dongil Don Jung

Dongil Don Jung

San Diego State University

Chee W. Chow

San Diego State University

Anne Wu

National Chengchi University (Taipei)

Date Written: July 31, 2006

Abstract

This study seeks to advance understanding of how transformational leadership by top executives can affect their companies' innovativeness. A holistic model is proposed that includes both direct effects from transformational leadership, and indirect effects mediated by characteristics of the organizational culture/climate, organizational structure, and the external environment. A multi-source, multi-dimensional approach is used to collect data and to operationalize the variables.

Data from 53 Taiwanese electronics and telecommunications companies generally supported the expectation that transformational leadership increases organizational innovation. The findings also revealed indirect effects mediated by empowerment, climate of support for innovation, centralization, formalization, competition, and environmental uncertainty. While most of the mediating effects were in the expected direction, some (e.g., empowerment) had unexpected signs. The implications of these findings for practice and research are delineated.

Suggested Citation

Jung, Dongil Don and Chow, Chee W. and Wu, Anne, Towards Understanding the Direct and Indirect Effects of Transformational Leadership on Firm Innovation (July 31, 2006). AAA 2007 Management Accounting Section (MAS) Meeting, Available at SSRN: https://ssrn.com/abstract=921300 or http://dx.doi.org/10.2139/ssrn.921300

Dongil Don Jung

San Diego State University ( email )

San Diego, CA 92182-0763
United States

Chee W. Chow

San Diego State University ( email )

San Diego, CA 92182-0763
United States

Anne Wu (Contact Author)

National Chengchi University (Taipei) ( email )

No. 64, Chih-Nan Road
Section 2
Wenshan, Taipei 11623
Taiwan

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
488
Abstract Views
3,036
rank
62,994
PlumX Metrics