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Strengthening Managerial Innovation Behavior in the SMEs: The Role of CEO Transformational Leadership, Cross-Functional Integration and Innovation Culture

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  • Bruce Gashema

    (School of Management, Department of Business Management, Huazhong University of science and technology, Wuhan, China)

  • Yongqiang Gao

    (Prof. School of Management, Department of Business Management, Huazhong University of science and technology, Wuhan, China)

Abstract

Managerial innovation as an internal change agent plays a central role in coping with the speed of today’s fast-paced customer demand and highly competitive market, yet previous studies paid less attention to the potential measures of strengthening managerial innovation behavior within organizations. Drawing from transformational leadership theory, the current study shed new light on this issue by examining the role of CEO transformational leadership (TFL), innovation culture (IC) and cross-functional integration (CFI) in advancing managerial innovation behavior in SMEs. A cross-sectional study with a sample of 434 respondents from 24 SMEs operating in Rwanda was conducted. To genuinely analyze the relationship between the variables hypothesized in this study, we used structural equation modeling (SEM) and bootstrapping technique using Amos 23 and SPSS 24. The overall findings revealed that the relationship proposed in the model were significantly supported. However, our new mechanism implying innovation culture and cross-functional integration in the relationship between CEO transformational leadership and managerial innovation behavior, provide a substantial contribution to management literature Key Words: Transformational leadership, managerial innovation behavior, cross-functional integration, organizational innovation culture

Suggested Citation

  • Bruce Gashema & Yongqiang Gao, 2018. "Strengthening Managerial Innovation Behavior in the SMEs: The Role of CEO Transformational Leadership, Cross-Functional Integration and Innovation Culture," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 7(3), pages 36-56, July.
    • Handle: RePEc:rbs:ijbrss:v:7:y:2018:i:3:p:36-56
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    References listed on IDEAS

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    1. Manuel Fernández-Esquinas & Madelon van Oostrom & Hugo Pinto, 2017. "Key issues on innovation, culture and institutions: implications for SMEs and micro firms," European Planning Studies, Taylor & Francis Journals, vol. 25(11), pages 1897-1907, November.
    2. Jae Hyeung Kang & George T. Solomon & David Y. Choi, 2015. "CEOs' Leadership Styles and Managers' Innovative Behaviour: Investigation of Intervening Effects in an Entrepreneurial Context," Journal of Management Studies, Wiley Blackwell, vol. 52(4), pages 531-554, June.
    3. David A. Waldman & Donald S. Siegel & Mansour Javidan, 2006. "Components of CEO Transformational Leadership and Corporate Social Responsibility," Journal of Management Studies, Wiley Blackwell, vol. 43(8), pages 1703-1725, December.
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    1. Bruce Gashema, 2019. "How Transformational Leadership Fuels Employee’s Creative Performance Behaviors in the Workplace?," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(4), pages 144-162, July.
    2. Bruce Gashema & Juniter Kwamboka Mokua, 2019. "Rickle-down effect of CEO transformational leadership on employee’s innovative work behaviors:Examining the role of managerial innovation behavior and organizational innovation culture," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 1(2), pages 01-14, April.

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