Recently, management innovation is considered as a significant source of competitive advantage. Vaccro, Jansen, Bosch and Volberda (2012) made an empirical research on investigating leadership behaviour at different organizational levels during the management innovation.
Vaccro et al’ (2012) study mainly focuses on two contents. Firstly, the management innovation is investigated at the organizational level, which the innovation is new for the company. Additionally, the CEO’s leadership behaviour is also investigated as premise of the management innovation. Secondly, the study also looks into whether the role of human agency is associated to the complexity of the organization.
Approach
Vaccro et al (2012) have presented a literature review of management innovation. Subsequently, four hypotheses are set up. Two of the hypotheses are exploring the relationship between transactional/transformational leadership and management innovation. The others are about whether the increasing organizational size weakens the positive effect of the transactional/transformational leadership in the innovation.
An empirical research, which has a sample of 1000 companies, is used to test the four above hypotheses. After taking several steps to reduce the bias, the manifestation of the management innovation in new practice, processes and structure can be reflected by six items, which are considered as independent variables. The dependent variables are the items of transformational/transactional leadership, which are the response of Multifactor Leadership Questionnaire (Bass and Avolio, 1995). Further, in order to demonstrate the effect of organizational size, the amount of full-time employees is included as the moderating variable. Lastly, the age of senior management in the organization is considered as the control variable in the research, as the longer time for the CEO’s active management, the greater effect on the innovation (Hambrick and Mason, 1984).