Transformational leadership and employee voice for product and process innovation in SMEs
DOI:
https://doi.org/10.1108/INMR-01-2020-0007Palavras-chave:
Pakistan, Transformational leadership, Employee voice, Process innovation, Small and medium enterprises (SMEs), Product innovationResumo
Purpose – This study aims to investigate the impact of transformational leadership on the innovation of
small and medium enterprises (SMEs) through employee voice behaviors. Drawing from the upper echelon
theory, it is hypothesized that employee voice is the mediating mechanism through which transformational
leadership affects the process and product innovation in SMEs.
Design/methodology/approach – Data was collected from 169 SMEs of Pakistan through an online
self-administered questionnaire. The proposed hypotheses were tested using partial least squares structural
equation modeling (PLS-SEM).
Findings – Findings confirm that transformational leadership positively affects both process and product
innovation in SMEs and employee voice behavior mediates between these relationships.
Originality/value – This research contributes to both theoretical and practical domains by providing
evidence that encouraging employees to raise their voice positively impacts product and process innovation
and transformational leadership is a potential organizational factor to shape employee voice and process and
product innovation. To the best knowledge, this is the first study that investigates the mediating role of
employee voice between transformational leadership and process and product innovation in SMEs and
developing country’s context.
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