The roles of CEO transformational leadership and organizational factors on product innovation performance

Abstract

Purpose The purpose of this paper is to examine the direct and indirect effects of CEO transformational leadership on product innovation performance. This research investigates the mechanism between CEO transformational leadership and product innovation performance, to understand the process through which transformational CEOs exert their influence. Design/methodology/approach This study is a quantitative research. Data were collected from 269 manufacturing firms in Thailand through a mail survey. This research applied a two-step structural equation modeling process. Findings The results indicate that CEO transformational leadership indirectly affects product innovation performance through an innovation culture, organizational learning, and the new product development (NPD) process. CEO transformational leadership has a strong effect on innovation culture and organizational learning. Organizational learning is strongly associated with the NPD process, which significantly leads to product innovation performance. By integrating the knowledge of leadership and operations management fields, this study helps extend the understanding of how leaders at the top of an organization influence the NPD process and product innovation outcomes. Practical implications For practical implications to be more effective, CEOs focusing on product innovation should develop their skills and behaviors of transformational leadership to foster innovation culture and organizational learning, which in turn will affect product innovation performance. Originality/value This study makes a contribution to the literature by filling the research gaps proposed by several prior studies and offering a theoretical framework of the relationship between CEO transformational leadership and product innovation performance.