Determinants of Innovation Capability: An Exploratory Study of Inclusive Leadership and Work Engagement
Abstract
Purpose: The purpose of this paper is to explore how innovation capability can be enhanced by inclusive leadership. In particular, the focus is on identifying the key drivers of work engagement and the role of leadership in boosting the innovation capability.
Methodology/Approach: This research has a qualitative exploratory nature. The exploratory fieldwork is based on an in-depth interview with the CEO, field observations and on the analysis of relevant corporate sources.
Findings: The research provides further confirmation of the link between inclusive leadership, work engagement and innovation capability. Specifically, authentic communication and leadership traits such as trust, courage, humility, empathy and gratitude are considered to be among the most important enablers of an inclusive environment that leads to business success.
Research Limitation/Implication: This study contributes to a better understanding of how companies could enhance innovation capabilities by leveraging the power of inclusion. The subjective business evidence coming from only one company constitute the main limitations of the present study.
Originality/Value of paper: This paper contributed to leadership and innovation literature. The results of this work provide a thorough understanding of the mechanisms for improving work engagement and, consequently, innovation capability. By grounding our research in both theory and empirical evidence, we provide valuable insight for both academia and practice.
References
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[e-journal] 24(2), pp.338-370. DOI: 10.1108/EJIM-11-2019-0339.
AlQershi, N.A., Diah, M.L.B.M., Latiffi, A.B.A. AND Ahmad, W.N.K.W., 2020. Strategic Innovation and Competitive Advantage of Manufacturing SMEs: The Mediating Role of Human Capital. Quality Innovation Prosperity, [e-journal] 24(3), pp.70-89. DOI: 10.12776/qip.v24i3.1493.
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Jong, J.D. and Hartog, D.D., 2010. Measuring Innovative Work Behaviour. Creativity and Innovation Management, [e-journal] 19(1), pp.23-36. DOI: 10.1111/j.1467-8691.2010.00547.x.
Kahn, W.A., 1990. Psychological Conditions of Personal Engagement and Disengagement at Work. Academy of Management Journal, [e-journal] 33(4), pp.692-724. DOI: 10.5465/256287.
Kotter, J.P. and Cohen, D.S., 2002. The Heart of Change: Real-Life Stories of How People Change Their Organizations. Boston, Massachutsetts: Harvard Business Review Press. Available at: < https://store.hbr.org/product/the-heart-of-change-real-life-stories-of-how-people-change-their-organizations/2549 > [Accessed 16 July 2021].
Kovač, J., Mühlbacher, J. and Kodydek, G., 2012. Uvod v management sprememb. Kranj: Moderna organizacija v okviru Fakultete za organizacijske vede.
Lawson, B. and Samson, D., 2001. Developing Innovation Capability in Organisations: A Dynamic Capabilities Approach. International Journal of Innovation Management (ijim), 05(03), pp.377-400.
Le, P.B. and Lei, H., 2019. Determinants of innovation capability: the roles of transformational leadership, knowledge sharing and perceived organizational support. Journal of Knowledge Management, [e-journal] 23(3), pp.527-547. DOI: 10.1108/JKM-09-2018-0568.
Liao, S.-H., Chen Ch.-Ch., Hu, D.-Ch., Chung, Y.-Ch. And Liu, Ch.-L., 2017. Assessing the influence of leadership style, organizational learning and organizational innovation. Leadership & Organization Development Journal, [e-journal] 38(5), pp.590-609. DOI: 10.1108/LODJ-11-2015-0261.
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Maletič, M., Gomišček, B. and Maletič, D., 2021. The missing link: sustainability innovation practices, non-financial performance outcomes and economic performance. Management Research Review. (ahead-of-print). DOI: 10.1108/MRR-09-2020-0562.
McMillan, C., 2010. Five competitive forces of effective leadership and innovation. Journal of Business Strategy, [e-journal] 31(1), pp.11-22. DOI: 10.1108/02756661011012741.
Moore, J.F., 1993. Predators and Prey: A New Ecology of Competition. Harvard Business Review, [online] 1 May. Available at: < https://hbr.org/1993/05/predators-and-prey-a-new-ecology-of-competition > [Accessed 17 July 2021].
Morgan, J., 2017. Why the Millions We Spend on Employee Engagement Buy Us So Little. Harvard Business Review, [online] 10 March. Available at: < https://hbr.org/2017/03/why-the-millions-we-spend-on-employee-engagement-buy-us-so-little > [Accessed 16 July 2021].
Najmaei, A. and Sadeghinejad, Z., 2019. Inclusive Leadership: A Scientometric Assessment of an Emerging Field. Diversity within Diversity Management, [e-journal] 22, pp.221-245. DOI: 10.1108/S1877-636120190000022012.
Nembhard, I.M. and 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, [e-journal] 27(7), pp.941-966. DOI: 10.1002/job.413.
Pacaiova, H. and Nagyova, A., 2015. Risk assessment Methodology in SMES. In: SGEM (International Multidisciplinary Scientific GeoConferences), 15th International Multidisciplinary Scientific GeoConference SGEM 2015: Conference Proceedings. Albena, Bulgaria, 18-24 June 2015. Curran Associates. pp.769-782. DOI: 10.5593/SGEM2015/B52/S23.102.
Pacaiova, H. and Nagyova, A., 2019. Risk Based Thinking – New Approach for Modern Enterprises’ Management. In J.I. Kantola, S. Nazir and T. Barath, eds. Advances in Human Factors, Business Management and Society. Cham: Springer International Publishing. pp.524-536. DOI: 10.1007/978-3-319-94709-9_52.
Prasad, B. and Junni, P., 2016. CEO transformational and transactional leadership and organizational innovation: The moderating role of environmental dynamism. Management Decision, [e-journal] 54(7), pp.1542-1568. DOI: 10.1108/MD-11-2014-0651.
PricewaterhouseCoopers (PwC), 2019. PwC’s 22nd Annual Global CEO Survey: CEOs’ curbed confidence spells caution. [pdf] PwC. Available at: < https://www.pwc.com/mu/pwc-22nd-annual-global-ceo-survey-mu.pdf > [Accessed: 16 July 2021].
Rich, B.L., LePine, J.A. and Crawford, E.R., 2010. Job engagement: Antecedents and effects on job performance. Academy of Management Journal, [e-journal] 53(3), pp.617-635. DOI: 10.5465/AMJ.2010.51468988.
Schaufeli, W.B., 2018. Work engagement in Europe: Relations with national economy, governance and culture. Organizational Dynamics, [e-journal] 47(2), pp.99-106. DOI: 10.1016/j.orgdyn.2018.01.003.
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Authors
Vladić, N., Maletič, D., & Maletič, M. (2021). Determinants of Innovation Capability: An Exploratory Study of Inclusive Leadership and Work Engagement. Quality Innovation Prosperity, 25(2), 130–152. https://doi.org/10.12776/qip.v25i2.1596
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