The Effect of leadership Styles On innovation:acase Study Of Pagatech Limited

Abstract

In today’s business world, every business organization interacts and transacts with its environment. The success or failure of a business organization is primarily determined by the effectiveness of its interaction with its environment. Changes in social composition, governmental regulations, technological advancements and global competition have made it extremely difficult for organizations to strive and sometimes even survive. Continuous innovation is one of the crucial sources for organizational survival in market-oriented economies. As a result, organizations are paying attention to probing all factors that boost the innovative effort of its employees. This is especially true in technology driven business due to the unprecedented innovation requirements and the ever changing environment in which these businesses are operating. This study was aimed at examining the effect of leadership styles on Innovation at Pagatech Limited. To achieve this objective, the study adopted an explanatory type of research design. The research was a quantitative research. From the total population of 460 employees, the sample of 214 respondents were selected using Yemane(1967) sample size determination formula. A structured online questionnaire was used to collect the data. Correlation analysis was used to test for the association among the dependent variables and independent variables for the study. Results of correlation analysis showed that transformational and transactional leadership style had a significant and positive impact on innovation. Correlation analysis also showed that laissez-faire leadership style has a significant negative impact on innovation. Autocratic leadership was found to have an insignificant negative relationship with innovation. The research concludes transformational, transactional and lasses faire leadership styles had a significant impact on innovation where as autocratic leadership had insignificant impact on innovation. The researcher recommends the organization develop processes and introduce training that promotes transformational and transactional leadership styles while discouraging the laissez-faire and autocratic leadership styles. Thereafter, regression analysis was used to test for the effect of the independent variable of the leadership on the dependent variable (innovation). The results were presented in form of tables and figures with brief descriptions.