The Mediating Role of Dynamic Capability on the Relationship between E-Leadership Qualities and Innovation Management: Insights from Malaysia’s Medical Device Industry

Abstract

The current research plans to investigate the role of e-leadership qualities in managing innovation with dynamic capability as a mediator with the aim to assess and measure how the rapidly changing demands are fulfilled for business sustainability through innovation management. Data have been obtained from a quantitative survey of 145 respondents using the stratified random sampling method. The samples were obtained from the medical device manufacturers located and registered in Malaysia. Data analysis was performed using Partial Least Square Structural Equation Modelling (PLS-SEM). The results show a significant influence of e-leadership qualities on innovation management indirectly with the mediating role of dynamic capabilities. Dynamic capabilities have a strong relationship with innovation management. This research shows the importance of different dimensions of e-leadership qualities in managing innovation for policy makers and practitioners and the impact of dynamic capabilities. Policy makers and managers can use these findings to use their resources to enhance their qualities and capabilities to perform better in managing innovation, which is among the top priorities of Malaysia at the national level. The results extend the literature on e-leadership qualities by empirically testing the relationship between innovation management and dynamic capability and by adding new contextual knowledge to the medical device industry.