Investigating the effects of leaders’ stewardship behavior on radical innovation: a mediating role of knowledge management dynamic capability and moderating role of environmental uncertainty

Abstract

Purpose This study aims to investigate the effects of leaders’ stewardship behavior (LSB) on followers’ radical innovation (RI). Followers’ knowledge management dynamic capability (KMDC) has been a mediating role, while environmental uncertainty (EU) acted as a moderating factor in the context of the textile and apparel industry in the developing country. Design/methodology/approach A cross-sectional quantitative study has been designed to evaluate the conceptual framework. Data were collected from the relevant stakeholders with a structured survey questionnaire – a total of 304 responses considered from industry–university collaborative leaders and followers. A partial least square-based structural equation modeling technique was applied to test the hypothesis using Smart-PLS 3.8 package program. Findings The result reveals that the KMDC has a significant mediating impact between LSB and RI. Similarly, the EU significantly moderates the relationship between KMDC and RI, especially as the intensity of environmental instability increases–decreases, LSB and adherents of KMDC is likely to enhance RI performances. Research limitations/implications This study contributes to the current literature extending the scope of steward leadership behavior and the theory of knowledge-based view incorporating EU factors. Practical implications While industries have invested a lot of money and resources to improve the followers’ radical creative thinking, skills and abilities, this study provides specific implications for the textile industry managers, leaders, policymakers and practitioners to comprehend and implement the strategy of RI. Originality/value Overall, the current research contributes to the LSB literature by highlighting significant complementarities between KMDC and RI under the EU.