Effect on Innovative Leadership for Organizational Performance of Medium-Sized Enterprises

Abstract

The purposes of this research includes: 1) to study the level of innovative leadership and organizational performance of medium-sized enterprises; 2) to study the relation between innovative leadership, organizational culture and strategy affecting the performance of organizations; 3) to develop and evaluate the quality of fit of a causal model of innovative leadership affecting organizational culture, strategy and performance to empirical data. The research’s sample consists of sixty-one wholesalers and retailers, one hundred and three service firms and one hundred and thirty-nine manufacturing companies. The data of all the firms involved is taken from the database of the office of small and medium enterprises promotion. It was found that 1) the level of innovative leadership and the medium-sized firm performance are relatively high; 2) innovative leadership, organizational culture, strategy and performance are positively correlated. In addition, coefficients range from high to low. 3) the causal model of innovative leadership affecting organizational culture, strategy and performance was fitted to the empirical data with χ2 = 51.88, df = 48, p = .32, GFI = .98, AGFI = .94: and finally, organizational performance is directly affected by innovative leadership, organizational culture and strategy to a magnitude of .37, .34 and .46 which are statistically significant at a .01 level.