Does transformational leadership facilitate technological innovation? The moderating roles of innovative culture and incentive compensation
No Thumbnail Available
Date
2012-01-01
Authors
hen, Mavis Yi-Ching
Carol Yeh-Yun Lin
Hsing-Er Lin
Edward F. McDonough III
Journal Title
Journal ISSN
Volume Title
Publisher
Springer US
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.