Relationship between leadership styles, employee creativity and organisational innovation: a proposed framework

Innovation plays an increasingly important role in the survival and growth of all organisations irrespective of state-owned or private enterprises. Nevertheless, most studies focus on technological innovation while there is a lack of studies examining organisational innovation relating to organisational methods. Therefore, expanding and replicating past research, this conceptual paper aims to provide a framework through which to understand and predict such influencing factors as leadership styles and employee creativity on organisational innovation as well as the interrelationships among those constructs in Vietnamese state-owned enterprises. From the literature-based analysis of previous studies, a comprehensive framework was respectively developed, illustrating the linkage between transformational leadership, transactional leadership on the components of organisational innovation that is being mediated by employee creativity. Moreover, the study may contribute to the literature on leadership, creativity and innovation along with enlightening the management to recognise which leadership style will effectively suit stateowned enterprises in tandem with promoting employee creativity to foster organisational innovation.