How transformational leadership facilitates radical and incremental innovation: the mediating role of individual psychological capital
Asia-Pacific Journal of Business Administration
ISSN: 1757-4323
Article publication date: 13 October 2020
Issue publication date: 4 November 2020
Abstract
Purpose
Given the important role of innovation capability in helping firms to innovate and adapt to a fast-paced and unpredictable environment, the purpose of this study is to investigate and deepen knowledge of how transformational leadership affects radical and incremental innovation via the mediating role of positive psychological capital.
Design/methodology/approach
The paper used structural equation modeling and cross-sectional design to test proposal hypotheses based on the empirical data collected from 379 participants in 89 manufacturing and service firms.
Findings
The results of this study revealed the positive and significant influence of transformational leadership on radical and incremental innovation. The findings highlighted the mediating role of individual psychological capital in the relationship between transformational leadership and aspects of innovation capability.
Practical implications
Organizations should invest and stress on practicing transformational leadership style for their managers/directors to foster and enhance individual psychological capital and innovation capabilities.
Originality/value
The paper has extended theory of innovation management by discussing and highlighting the important role of transformational leadership and psychological capital in fostering specific aspects of innovation namely radical and incremental innovation.
Keywords
Acknowledgements
This research is funded by Vietnam National Foundation for Science and Technology Development (NAFOSTED) under grant number 502.02-2019.300.
Citation
Le, P.B. (2020), "How transformational leadership facilitates radical and incremental innovation: the mediating role of individual psychological capital", Asia-Pacific Journal of Business Administration, Vol. 12 No. 3/4, pp. 205-222. https://doi.org/10.1108/APJBA-04-2020-0129
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited