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

doi:10.1007/s10490-012-9285-9

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

Department of Technology Application and Human Resource Development

Research output: Contribution to journal › Article › peer-review

84 Citations (Scopus)

Abstract

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 language	English
Pages (from-to)	239-264
Number of pages	26
Journal	Asia Pacific Journal of Management
Volume	29
Issue number	2
DOIs	https://doi.org/10.1007/s10490-012-9285-9
Publication status	Published - 2012 Jun

Keywords

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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10.1007/s10490-012-9285-9

Cite this

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abstract = "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.",

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AB - 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.

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

Abstract

Keywords

ASJC Scopus subject areas

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