Does transformational leadership facilitate technological innovation? The moderating roles of innovative culture and incentive compensation

Mavis Yi Ching Chen, Carol Yeh Yun Lin, Hsing Er Lin, Edward F. McDonough

Research output: Contribution to journalArticle

45 Citations (Scopus)


The present research investigates the relationships between SBU-level transformational leadership and technological innovation, as well as the moderating effects of innovative culture and incentive compensation. Paired data were gathered from 102 senior managers and 258 employees in 102 Taiwanese strategic business units (SBUs). The results indicate that transformational leadership behaviors promote technological innovation at the SBU level. Interestingly, a stronger innovative culture is a substitute for transformational leadership behavior for facilitating technological innovation. In addition, financial-incentive adoption neutralizes the relationship between transformational leadership and technological innovation.

Original languageEnglish
Pages (from-to)239-264
Number of pages26
JournalAsia Pacific Journal of Management
Issue number2
Publication statusPublished - 2012 Jun 1



  • Incentive compensation
  • Innovative culture
  • Taiwan
  • Technological innovation
  • Transformational leadership

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

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