Abstract

The role of national and organisational culture in innovation and the implications for strategy remains a source of professional and academic interest. The purpose of this paper is to investigate how national culture and organisational culture influence the relationship between leadership style and innovation strategy. A quantitative approach is adopted for the research methodology utilising structural equation modelling (SEM) to test the hypotheses and explore the relationships between the observed variables. The findings reveal that leadership styles have distinct relationships with innovation strategies and point to a duality in terms of transformational and transactional leadership and innovation. The relationship between national culture dimensions provides support for the notion of a balanced approach to innovation management. National culture does not appear to be an entirely restraining factor in innovation. The findings indicate that cultural dimensions at national and organisational level overall exert a small moderating effect suggesting that the relationship between leadership style and innovation strategies is not wholly bound by national and organisational culture.

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