International Journal of Academic Research in Business and Social Sciences

search-icon

A Review of the Impact of Leadership Styles on Employee Innovation Performance

Open access
With the vigorous growth and structural transformation of the Chinese economy, corporate managers increasingly recognize the strategic importance of fostering employee innovation. In the competitive landscape, businesses must continually innovate to enhance their competitiveness, viewing innovation as the cornerstone of survival. Against this environment, leadership styles become crucial, as employees play the pivotal role of executing all strategic plans and objectives. This study explores the relationship between different leadership styles and employee innovation performance through a literature review approach. The research reveals that close collaboration between leaders possessing various leadership styles and their employees is essential to spark the courage for innovation, thereby enhancing employee innovation performance. Based on a synthesis of existing literature, this paper outlines prospective directions for future research: Firstly, expanding the study on the impact and mechanisms of inclusive leadership on employee innovation performance, unravelling the potential mechanisms through which leadership styles stimulate employee innovation. Secondly, there is a need to enrich research on various leadership styles to comprehensively understand the role of leadership behaviour in shaping innovation performance. Furthermore, considering the unique characteristics of different industries in China, there should be in-depth investigations into the specific mechanisms through which leadership styles influence employee innovation performance across diverse sectors, providing more targeted management recommendations. Through these efforts, a better understanding and effective responses to the complex relationship between leadership styles and employee innovation can be achieved, offering scientifically grounded and practical guidance for sustained corporate innovation.
Bao, M. G. (2023). The impact of leadership style characteristics on dedication and innovative behavior of innovative talents. Management and Administration, (11), 60-72. doi:10.16517/j.cnki.cn12-1034/f.2023.11.014.
Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press, (3), 242.
Bi, X. Q., & Zhan, L. M. (2016). A Study on the Relationship between Performance Appraisal, Transformational Leadership, and Employee Innovation. Science and Technology Management Research, (18), 116-121. doi:CNKI:SUN:KJGL.0.2016-18-022.
Burns, J. M. (1978). Leadership. New York: Harper & Row.
Chaganti, R., & Damanpour, F. (1991). Institutional ownership, capital structure, and firm performance. Strategic Management Journal, 12(7), 479-491.
Chen, W. J., & Shi, K. (2007). Retrospect and prospect of transformational leadership and transactional leadership. Management Review, (09), 22-29+63.
doi:CNKI:SUN:ZWGD.0.2007-09-004.
Chen, Z. (2018). A relevant study on the impact of paternalistic leadership on innovation behavior in the new generation of employees (Master's thesis, Jinan University).
Choi, S. B., Tran, T. B. H., & Park, B. I. (2015). Inclusive leadership and work engagement: Mediating roles of affective organizational commitment and creativity. Social Behavior and Personality: An International Journal, 43(6), 931-943.
Conger, J. A., & Kanungo, R. N. (1998). Charismatic leadership in organizations. Administrative Science Quarterly, 46(1), 163-164.
Coombs, R., Narandren, P., & Richards, A. (1996). A literature-based innovation output indicator. Research Policy, 25(3), 403-413.
Costa, J., Pádua, M., & Moreira, A. C. (2023). Leadership Styles and Innovation Management: What Is the Role of Human Capital?. Administrative Sciences, 13(2), 47.
Cross, R. L., Singer, J., Colella, S., Thomas, R. J., & Silverstone, Y. (2010). The organizational network fieldbook: Best practices, techniques and exercises to drive organizational innovation and performance. John Wiley & Sons.
Fan, J. L., & Zheng, B. X. (2000). Paternalistic leadership in Chinese organizations: An analysis from a cultural perspective. Indigenous Psychological Research, 13, 126-180.
Hammond, M., Cleveland, J. N., O'Neill, J. W., Stawski, R. S., & Jones Tate, A. (2015). Mediators of transformational leadership and the work-family relationship. Journal of Managerial Psychology, 30(4), 454-469.
Herscovitch, I., & Meyer, J. P. (2002). Commitment to organizational change: Extension of a three-component model. Journal of Applied Psychology, 87, 474-487.
Hirak, R., Peng, A. C., Carmeli, A., & Schaubroeck, J. M. (2012). Linking leader inclusiveness to work unit performance: The importance of psychological safety and learning from failures. The Leadership Quarterly, 23(1), 107-117.
Hoch, J. E., Bommer, W. H., Dulebohn, J. H., & Wu, D. (2018). Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. Journal of Management, 44(2), 501-529.
House, R. J. (1976). Leadership theory of charismatic leadership. In Leadership: Frontiers. Hunt, J. G., Larson, L. L. (Eds.). Carbondale: Southern Illinois University Press, 189-207.
Huang, Q. F., & Tang, N. Y. (2016). A meta-analysis of the impact of transformational leadership and transactional leadership on employee innovative behavior. Soft Science, (03), 60-64. doi:10.13956/j.ss.1001-8409.2016.03.13.
Jian, H. X., Xu, Y. F., Cao, M., & Zhao, S. M. (2017). Inclusive leadership and employees' work engagement from the perspective of organizational identity. Management World, (11), 1624-1630.
Khursheeduddin, S. (2023). The impact of leadership styles on employee performance (Master's thesis, Jiangxi University of Finance and Economics). Retrieved from https://kns1.hggfdd.top/KCMS/detail/detail.aspx?dbname=CMFDTEMP&filename=1023639091.nh
Lee, A., Legood, A., Hughes, D., Tian, A. W., Newman, A., & Knight, C. (2020). Leadership, creativity and innovation: A meta-analytic review. European Journal of Work and Organizational Psychology, 29(1), 1-35.
Lee, H. C., & Liu, Y. W. (2008). Impacts of organizational innovation capability and leadership styles on innovation performance for electronics information industry in Taiwan. In Service Operations and Logistics, and Informatics. IEEE/SOLI, 2008. IEEE International Conference on (pp. 1903-1907).
Li, Q., Tang, W. J., & Yan, M. H. (2021). The impact of inclusive leadership on the innovation performance of new-generation employees in the manufacturing industry: A cross-level dual mediation model. East China Economic Management, 35(9), 120-128.
Li, T., & Tang, N. Y. (2023). The relationship between inclusive leadership and employee innovation: A meta-analysis. Shanghai Management Science, (01), 54-62. doi:CNKI:SUN:SGLK.0.2023-01-010.
Li, Y. (2017). The impact of paternalistic leadership on employee innovation behavior (Master's thesis, Henan University of Economics and Law).
Li, Y. Z. (2018). The impact of transformational leadership on employees' innovative behavior: The mediating roles of psychological empowerment and affective commitment. Scientific Research Management, 39(7), 123-130.
Liang, F., & Zhang, Z. X. (2018). The impact of differentiated transformational leadership on innovation performance. Economic Perspectives, 06, 114-120. doi:10.15931/j.cnki.1006-1096.20180925.010.
Liang, F., Li, S. W., & Luo, J. L. (2018). The influence of differentiated transformational leadership on employee innovative behavior: A resource transformation perspective. Management Science, 03, 62-74. doi:CNKI: SUN: JCJJ.0.2018-03-007.
Lin, X. Q., Luan, Y. X., Zhao, K., & Zhao, G. L. (2022). Meta-analysis of the relationship between leadership styles and employee innovative performance: A self-determination perspective. Advances in Psychological Science, 04, 781-801.
Lu, L., Zhou, K., Wang, Y., & Zhu, S. (2022). Relationship between paternalistic leadership and employee innovation: A meta-analysis among Chinese samples. Frontiers in Psychology, 13, 920006.
Luo, W. Q., & Shan, Y. J. (2022). Public servant leadership and employee innovative performance: A moderated mediation model. Journal of Shandong University of Finance and Economics, 05, 85-94+120.
Matthew, C. T. (2010). Leader creativity as a predictor of leading change in organizations. Journal of Applied Social Psychology, 39(1), 1-41.
Miao, G. A. (2021). Overview and prospect of classification criteria for leadership styles. Leadership Science, 18, 31-36.
Miao, H. H. (2019). The impact of transformational and transactional leadership styles on employees' innovation performance. Social Science Front, (12), 240-244. doi:CNKI:SUN:SHZX.0.2019-12-039.
Mumford, M. D., Robledo, I. C., & Hester, K. S. (2011). Creativity, innovation, and leadership: Models and findings. The Sage handbook of leadership, 405-421.
Nembhard, I. M., & Edmondson, A. C. (2006). Making it safe: The effects of leader inclusiveness and professional status on psychological safety and improvement efforts in health care teams. Journal of Organizational Behavior: The International Journal of Industrial, Occupational, and Organizational Psychology and Behavior, 27(7), 941-966.
Nguyen, T. P. L. (2023). Factors affecting innovative behavior of Vietnamese enterprises employees. International Journal of Innovation Science, 15(1), 186-203.
Nguyen, T. P. L., & Doan, H. X. (2023). Psychological empowerment and employees' creativity in Vietnam telecommunications enterprises: The mediating role of creative process engagement and intrinsic motivation. International Journal of Emerging Markets, 18(9), 3264-3282.
Pillai, R., Schriesheim, C. A., & Williams, E. S. (1999). Fairness perceptions and trust as mediators for transformational and transactional leadership: A two-sample study. Journal of Management, 25(6), 897-933.
Qin, W. G. (2018). Employee workplace deviant behavior and countermeasures under the full-range leadership theory. Shanghai Enterprises, 7, 76-78.
Rashwan, K. A., & Ghaly, M. (2022). The effect of transformational, transactional, and authentic leadership on innovation: The mediating role of organizational culture. Consumer Behavior in Tourism and Hospitality, (4). doi:10.1108/CBTH-09-2021-0216.
Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative behaviour: A path model of individual innovation in the workplace. Academy of management journal, 37(3), 580-607.
Sun, B. P., & Yu, Q. Q. (2021). Research on the influencing mechanism of relational leadership on employee innovative performance: A mediated moderation model. Journal of Yangtze Normal University, 02, 22-34. doi:10.19933/j.cnki.ISSN1674-3652.2021.02.003.
Sun, M. G. (2021). Leadership style, psychological empowerment, and work-life balance of entrepreneurial employees. Lanzhou Journal, 08, 30-43.
Tierney, P., & Farmer, S. M. (2002). Creative self-efficacy: Its potential antecedents and relationship to creative performance. Academy of Management journal, 45(6), 1137-1148.
Valero-Pastor, J. M., García-Avilés, J. A., & Carvajal, M. (2021). Transformational leadership and innovation in digital-only news outlets. Analysis of Quartz and El Confidencial. Journalism studies, 22(11), 1450-1468.
Wang, A. C., & Cheng, B. (2010). When Does Benevolent Leadership Lead to Creativity? The Moderating Role of Creative Role Identity and Job Autonomy. Journal of Organizational Behavior, 31(1), 106-121.
Watts, L. L., Steele, L. M., & Den Hartog, D. N. (2020). Uncertainty avoidance moderates the relationship between transformational leadership and innovation: A meta-analysis. Journal of International Business Studies, 51, 138-145.
Weber, M. (1978). Economy and Society: An Outline of Interpretive Sociology. G. Roth,& C.Wittich (Eds.). Berkeley: University of California Press.
Wu, W. H., & Zhao, X. B. (2010). The impact of leadership styles on knowledge employees' innovative behavior. Science and Technology Progress and Policy, (02), 153-156. doi:CNKI:SUN:KJJB.0.2010-02-041.
Xu, L. (2014). The Influence of Transformational Leadership on Employee Innovative Performance: The Mediating Role of Psychological Empowerment. Journal of Hubei University of Economics (Humanities and Social Sciences), (12), 45-46. doi:CNKI:SUN:HBRW.0.2014-12-020.
Xu, Y. (2020). The impact of paternalistic leadership on employee innovation behavior (Master's thesis, Wuhan University of Technology).
Xu, Y., Qian, H., Zhang, M., Tian, F., Zhou, L., & Zhao, S. (2022). Flexible human resource management systems and employee innovation performance in China–based on the moderated mediation effect. Chinese Management Studies.
Yang, H., Liu, J. H., & Li, M. (2011). The Impact of Transformational Leadership on Employee Innovative Job Performance. Science and Technology Management Research, (20), 157-160. doi:CNKI:SUN:KJGL.0.2011-20-039.
Yuan, B. Q. (2017). A Cross-level and Moderating Effects Study on the Impact of Transformational Leadership on Employee Innovative Performance. Economic Research Reference, (53), 118-121. doi:10.16110/j.cnki.issn2095-3151.2017.53.025.
Zacher, H., Robinson, A. J., & Rosing, K. (2016). Ambidextrous leadership and employees' self?reported innovative performance: The role of exploration and exploitation behaviours. The Journal of Creative Behaviour, 50(1), 24-46.
Zhang, L. X., Zhang, L. T., & Zhu, T. (2019). The impact of leader-employee cognitive style matching on employee creativity and innovation performance. Nankai Management Review, (2).
Zhang, P. C., Liu, W. X., & Liao, J. Q. (2011). The impact mechanism of charismatic leadership on employee creativity: Is psychological safety enough? Management World, 10, 94-107.
Zhang, Y., Pang, X. S., & Chen, Y. (2019). The impact of charismatic leadership on innovative performance of new-generation employees. Technoeconomics, 38(11), 33-39. DOI:10.3969/j.issn.1002-980X.2019.11.004.
Zhong, L. F., Meng, J., & Gao, L. (2019). The impact of ethical leadership on employee innovative performance: The mediating role of social exchange and the moderating role of power distance orientation. Management World, 05, 149-160. doi:10.19744/j.cnki.11-1235/f.2019.0072.
Zhu, K. J. (2017). The impact of paternalistic leadership on employee innovation behavior (Master's thesis, Nanjing Normal University).