The effect of transformational leadership on innovation : evidence from Lebanese banks

Purpose: Transformational leadership (TL) has been recognized as one of the most important factor influencing innovation. It is argued that this style plays an essential role in developing the process, structure and climate for organizations to become innovative. This research aims to examine the impact of TL on two aspects of innovation namely product and process innovation. Design/Methodology/Approach: The quantitative and explanatory analysis was taken by using the Structural equations modeling (SEM) with AMOS 20 to examine the relationship between TL and innovation. Research data were collected through a survey method. The sample result was determined by the probability stratified sampling technique of about 310 employees at 27 banks in Lebanon. Findings: The findings confirmed the importance of TL in enhancing innovation in banking sector. The main implication of the research highlights that individualized consideration is the most important predictor of product and process innovation followed by, inspirational motivation and idealized influence, respectively, whereas, intellectual stimulation has insignificant influence on product and process innovation. Practical Implications Findings point to how transformational style of leadership produce better outcomes for the banks by mobilizing employees to engage in innovative products and processes. Originality/Value: These findings extends the understanding of the processes through which transformational styles of leadership stimulate innovation, and also highlight the benefits gained by cultivating more transformational styles of leadership to generate more innovative outcomes.peer-reviewe

Transformational leadership and innovation at the Lebanese banking industry

Purpose: Transformational leadership (TL) has been recognized as one of the most important factor influencing innovation. It is argued that this style plays an essential role in developing the process, structure and climate for organizations to become innovative. This research aims to examine the impact of TL on two aspects of innovation namely product and process innovation. Design/Methodology/Approach: The quantitative and explanatory analysis was taken by using the Structural equations modeling (SEM) with AMOS 20 to examine the relationship between TL and innovation. Research data were collected through a survey method. The sample result was determined by the probability stratified sampling technique of about 310 employees at 27 banks in Lebanon. Findings: The findings confirmed the importance of TL in enhancing innovation in banking sector. The main implication of the research highlights that individualized consideration is the most important predictor of product and process innovation followed by, inspirational motivation and idealized influence, respectively, whereas, intellectual stimulation has insignificant influence on product and process innovation. Practical Implications: Findings point to how transformational style of leadership produce better outcomes for the banks by mobilizing employees to engage in innovative products and processes. Originality/Value: These findings extends the understanding of the processes through which transformational styles of leadership stimulate innovation, and also highlight the benefits gained by cultivating more transformational styles of leadership to generate more innovative outcomes.peer-reviewe

Knowledge Sharing and Innovation at the Lebanese Banking Industry

Knowledge is considered the main critical resource for competitive advantage. By encouraging a knowledge‐sharing culture within service settings such as banks, the quality of service is enhanced and the opportunities for innovation is created. This research seeks to test the relationship between knowledge sharing (KS) and innovation. A quantitative and explanatory analysis was done by using Structural equations modeling (SEM) to investigate the effect of KS on process and product innovation. Research data were collected through a survey method. The sample result was determined through a probability stratified sampling technique of about 310 employees at 27 banks in Lebanon. The findings confirmed the vital role played by KS in enhancing innovation. The main implications of the research emphasize that knowledge sharing is the most important predictor of process innovation followed by product innovation. The findings highlight how KS produces better outcomes for banks by mobilizing employees to engage in the innovation of products and processes. It is recommended that banks promote KS by establishing a suitable climate that helps employees to meet and communicate ideas effectively. This motivates them to get involve in process and product innovation, by stimulating them to look for novel ideas and adopt advanced technologies. These findings extend the understanding of the processes through which sharing knowledge stimulate innovation, and also stress on the benefits gained by cultivating knowledge sharing processes to generate more innovative outcomes