The Effects of Leadership Styles on Organizational Innovation in Universities in Indonesia and Malaysia

Main Article Content

Siswanto Siswanto
Achmad Sani Supriyanto
Eko Suprayitno
Vivin Maharani Ekowati
Ague Eko Sujianto
Fuadah Binti Johari
Ali Ridlo
Abd Haris
Muhtadi Ridwan

Abstract

One of the important factors for higher education institutions is to achieve global university rankings, and creativity in academic faculty could contribute towards achieving this. This requires academic leadership to encourage creativity to acquire core competencies in order to meet performance indicator standards and promote organizational innovation by stimulating intrinsic motivation and influencing creativity in lecturers to provide a favorable work environment. This research aimed to analyze the effect of behavioral leadership, intrinsic motivation on individual creativity.  It also examined the effect of leadership style and individual creativity on organizational innovation. The target population was the faculty of economics from two Islamic state universities in Indonesia and Malaysia. The sample of the study was 248 lecturers. Data were collected by questionnaires and analyzed using the Partial Least Square (PLS). The results showed that behavioral leadership directly affects organizational innovation (β = .38; p = .00), intrinsic motivation mediates the effect of behavioral leadership on individual creativity (β = .39; p = .00), and individual creativity affects organizational innovation (β = .35; p = .02). In contrast, individual creativity is not a mediator of the effect of behavioral leadership on organizational innovation (β = .14; p = .23). In addition, intrinsic motivation as a mediator between behavioral leadership and individual creativity. The findings from this research could be applied to enhance organizational innovation by developing intrinsic motivation, and individual creativity among faculty members in higher education.

Article Details

How to Cite
Siswanto, S., Supriyanto, A. S., Suprayitno, E., Ekowati, V. M., Sujianto, A. E., Binti Johari, F., Ridlo, A., Haris, A., & Ridwan, M. (2022). The Effects of Leadership Styles on Organizational Innovation in Universities in Indonesia and Malaysia. The Journal of Behavioral Science, 17(2), 90–103. Retrieved from https://so06.tci-thaijo.org/index.php/IJBS/article/view/255523
Section
Research Articles
Author Biographies

Ague Eko Sujianto, Professor, State Islamic University of Tulungagung, Indonesia

State Islamic University of Tulungagung

Fuadah Binti Johari, Associate Professor, Universiti Sain Islam Malaysia (USIM), Malaysia

Universiti Sain Islam Malaysia (USIM)

Abd Haris, Professor, State Islamic University of Maulana Malik Ibrahim Malang, Indonesia

State Islamic University of Maulana Malik Ibrahim Malang

Muhtadi Ridwan, Professor, State Islamic University of Maulana Malik Ibrahim Malang, Indonesia

State Islamic University of Maulana Malik Ibrahim Malang

References

Adeel, A., Arshad, M. A., Mahmood, A., & Akhtar, S. (2019). The IOCB influence of spiritual values on employee’s helping behavior: The moderating role of Islamic work ethic. Journal of Management, Spirituality & Religion, 16(3), 1-29. https://doi.org/10.1080/14766086.2019.1572529

Alblooshi, M., Shamsuzzaman, M., & Haridy, S. (2021). The relationship between leadership styles and organisational innovation : A systematic literature review and narrative synthesis. European Journal of Innovation Management, 24(2), 338-370. https://doi.org/10.1108/EJIM-11-2019-0339

Aleksic, D., Mihelic, K. K., Cerne, M., & Skerlavaj, M. (2017). Interactive effects of perceived time pressure, satisfaction with work-family balance (SWFB), and leader-member exchange (LMX) on creativity. Personnel Review, 46(3), 662-679. https://doi.org/10.1108/PR-04-2015-0085

Amabile, T. M. (1997). Motivating creativity in organizations: On doing what you love and loving what you do. California Management Review, 40(1), 39-58. https://doi.org/10.2307/41165921

Amabile, T. M., & Pratt, M. G. (2016). The dynamic componential model of creativity and innovation in organizations: Making progress, making meaning. Research in Organizational Behavior, 36, 157-183. https://doi.org/10.1016/j.riob.2016.10.001

Blake, R. R., & Moulton, J. S. (1996). Managerial grid: Leadership style for achieving production through people (9th ed.). Gulf Publishing.

Belleflamme, P., & Peitz, M. (2015). Industrial organization: Markets and strategies (2nd ed.). Cambridge University Press.

Chen, A. S. Y., & Hou, Y. H. (2016). The effects of ethical leadership, voice behavior and climates for innovation on creativity: A moderated mediation examination. The Leadership Quarterly, 27(1),

-13. https://doi.org/10.1016/j.leaqua.2015.10.007

Garson, G. D. (2016). Partial Least square: Regression and structural equations model. https://www.smartpls.com/resources/ebook_on_pls-sem.pdf

Ghozali, I. (2013). Application of multivariate analysis with IBM SPSS 21 program (7th.ed). Diponegoro University.

Gumusluoglu, L. & Ilsev, A. (2009). Transformational leadership, creativity, and organizational innovation. Journal of Business Research, 62(4), 461-473. https://doi.org/10.1016/j.jbusres.2007.07.032

Guthrie, J., & Dumay, J. (2015). New frontiers in the use of intellectual capital in the public sector. Journal of Intellectual Capital, 16(2), 258-266. https://doi.org/10.1108/JIC-02-2015-0017

Hughes, D. J., Lee, A., Tian, A. W., Newman, A., & Legood, A. (2018). Leadership, creativity, and innovation: A critical review and practical recommendations. The Leadership Quarterly, 29(5), 549-569. https://doi.org/10.1016/j.leaqua.2018.03.001

Javed, B., Rawwas, M. Y., Khandai, S., Shahid, K., & Tayyeb, H. H. (2018). Ethical leadership, trust in leader and creativity: The mediated mechanism and an interacting effect. Journal of Management & Organization, 24(3), 388 - 405. https://doi.org/10.1017/jmo.2017.56

Jia, X., Chen, J., Mei, L., & Wu, Q. (2018). How leadership matters in organizational innovation: A perspective of openness. Management Decision, 56(1), 6-25.

https://doi.org/10.1108/MD-04-2017-0415

Junusi, R. E., Nurhidayati., Widarno, B., & Mubarok, F. K. (2021). Building the relationship of Islamic transglobal leadership with human resource performance through a meaningful work, engagement, and creativity. International Journal of Economics and Management, 15(2), 175-190. http://www.ijem.upm.edu.my/vol15no2.htm

Kundu, S. C., Kumar, S., & Gahlawat, N. (2019). Empowering leadership and job performance: mediating role of psychological empowerment. Management Research Review, 42(5), 605-624. https://doi.org/10.1108/MRR-04-2018-0183

Kwon, K., & Cho, D. (2016). How transactive memory systems relate to organizational innovation: The mediating role of developmental leadership. Journal of Knowledge Management, 20(5), 1025-1044. https://doi.org/10.1108/JKM-10-2015-0413

Liao, S. H., Chen, C. C., Hu, D. C., Chung, Y. C., & Liu, C. L. (2017). Assessing the influence of leadership style, organizational learning and organizational innovation. Leadership & Organization Development Journal, 38(5), 590-609. https://doi.org/10.1108/LODJ-11-2015-0261

Liu, X., Zhiwei, Z., Zheng, L., & Chunyan, F. (2020). The influence of leader empowerment behaviour on employee creativity. Management Decision, 58(12), 2681-2703.

https://doi.org/ 10.1108/MD-02-2019-0281.

Morrison, E. W., & Milliken, F. J. (2000). Organizational silence: A barrier to change and development in a pluralistic world. The Academy of Management Review, 25(4), 706-725. https://doi.org/10.2307/259200

Muenjohn, N., Ishikawa, J., Muenjohn, P., Memon, M. A. & Ting, H. (2021). The effect of innovation and leadership on performance in China and Vietnam. Asia Pacific Business Review, 27(1), 101-110. https://doi.org/10.1080/13602381.2021.1850606

Nazir, S., Amina, S., Muhammad, A. A., Wang, Q., & Sahar, K. (2020). How does ethical leadership boost follower’s creativity? Examining mediation and moderation mechanisms. European Journal of Innovation Management, 1460-1060. https://doi.org/10.1108/ejim-03-2020-0107

Nguyen, N. T., Hooi, L. W., & Avvari, M. V. (2021). Leadership styles and organisational innovation in Vietnam: does employee creativity matter? International Journal of Productivity and Performance Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJPPM-10-2020-0563

Nuzul. A. (2018). The relationship between empowering leadership, creative self-efficacy and employee creativity and their impact on employee performance. Journal of Management Science, 6(2), 30-42. https://jurnalmahasiswa.unesa.ac.id/index.php/jim/article/view/23614

Osman, Z. (2020). Indirect relationship among leadership styles, self-efficacy and academic employees’ performance in Malaysian online distance learning higher education institutions. International Journal of Academic Research in Business and Social Sciences, 10(8), 1093-1104. https://doi.org/10.6007/IJARBSS/v10-i8/7717

Ossai, E. (2021). Relationship between leadership style and innovation performance in small-to-medium-scale enterprises in Nigeria (Publication No.10358). [Doctoral dissertation, Walden University]. Walden Dissertations and Doctoral Studies

Robbins, P. S., & Timothy, A. J. (2011). Organizational Behaviour (12th.ed.). Salemba Empat.

Rosing, R., Michael, F., & Andreas, B. (2011). Explaining the heterogeneity of the leadership-innovation relationship: Ambidextrous leadership. The Leadership Quarterly, 22(5), 956–974. https://doi.org/10.1016/j.leaqua.2011.07.014

Ryan, R. M., & Deci, E. L. (2000). Intrinsic and extrinsic motivations: Classic definitions and new directions. Contemporary Educational Psychology, 25(1), 54-67. https://doi.org/10.1006/ceps.1999.1020

Sani, A., & Ekowati, V. M. (2020). Spirituality at work and organizational commitment as moderating variables in relationship between Islamic spirituality and OCB IP and influence toward employee performance. Journal of Islamic Marketing, 11(6), 1777-1799.

https://doi.org/10.1108/JIMA-08-2018-0140

Santosa, T. E. C., Suharnomo, & Yuniawan, A. (2022). An examination of the antecedents and consequences of employee creativity in Indonesian radio industry. The Journal of Behavioral Science, 17(1), 1–15. https://so06.tci-thaijo.org/index.php/IJBS/article/view/254129

Secundo, S., & Passante, G. (2017). Mobilising intelectual capital to improve universities competitiveness: The technology transfer offices’ role. Journal of Intellectual Capital, 18(3), 607-624, https://doi.org/10.1108/JIC-12-2016-0139

Seibert, S. E., Wang, G., & Courtright, S. H. (2011). Antecedents and consequences of psychological and team empowerment in organizations: A meta-analytic review. Journal of Applied Psychology, 96(5), 981–1003. https://doi.org/10.1037/a0022676

Sekaran, U., & Bougie, R. (2016). Research methods for business A skill- building approach (7th ed.). Wiley and Sons.

Shalley, C. E., & Gilson, L. L. (2004). What leaders need to know: a review of social and contextual factors that can foster or hinder creativity. The Leadership Quarterly, 15(1), 33-53. https://doi.org/10.1016/j.leaqua.2003.12.004

Shafique, I., Bashir, A., & Masood, N. K. (2020). How ethical leadership influences creativity and organizational innovation. Examining the underlying mechanism. European Journal of Innovation Management, 23(1), 114-133. https://doi.org/10.1108/EJIM-12-2018-0269

Scheepers, C. B., & Storm, C. P. (2019). Authentic leadership’s influence on ambidexterity with mediators in the South African context. European Business Review, 31(3), 352-378. https://doi.org/10.1108/EBR-11-2017-0207

Shin, S. J., & Zhou, J. (2003). Transformational leadership, conservation, and creativity: Evidence from Korea. Academy of Management Journal, 46(6), 703-714. https://doi.org/10.2307/30040662

Sinha, S., Singh, A. K., Gupta, N., & Dutt, R. (2010). Impact of work culture on motivation level of employees in selected public sector companies in India. Delhi Business Review, 11(1), 43-54. https://doi.org/10.51768/dbr.v11i1.111201004

Supriyanto, A. S., Sujianto, A.E., & Ekowati, V. M. (2020). Factors affecting innovative work behavior: Mediating role of knowledge sharing and job crafting. Journal of Asian Finance, Economics and Business 7(11), 999–1007. http://doi.org/10.13106/jafeb.2020.vol7.no11.999

Supriyanto, A. S., & Ekowati, V. M. (2020). Spiritual leadership and Islamic organisational citizenship behaviour: Examining mediation moderated process. International Journal of Innovation, Creativity and Change, 13(3),166-185.

https://www.ijicc.net/images/vol_13/Iss_3/13333_Supriyanto_2020_E_R.pdf

Syahrul, K. (2020). The effect of empowering leadership on intrinsic motivation: The role of psychological empowerment as a mediation. Journal of leadership in Organization, 2(2), 108-120. https://doi.org/10.22146/jlo.56135

Tierney, W. G., & Lanford, M. (2016). Conceptualizing innovation in higher education: Handbook of theory and research. University of Southern California. https://www.researchgate.net/profile/Michael-Lanford-2/publication/303208037_Conceptualizing_Innovation_in_Higher_Education/links/5a0a794b45851551b78d3b95/Conceptualizing-Innovation-in-Higher-Education.pdf?origin=publication_detail

Tu, Y., Lu, X., Choi, J. N., & Guo, W. (2019). Ethical leadership and team-level creativity: Mediation of psychological safety climate and moderation of supervisor support for creativity. Journal of Business Ethics, 159(2), 551–565. https://doi.org/10.1007/s10551-018-3839-9

Tu, Y., & Lu, X. (2016). Do ethical leaders give followers the confidence to go the extra mile? The moderating role of intrinsic motivation. Journal of Business Ethics, 135(1), 129–144. https://doi.org/10.1007/s10551-014-2463-6

Tung, H. L., & Chang, Y. H. (2011). Effects of empowering leadership on performance in management team: Mediating effects of knowledge sharing and team cohesion. Journal of Chinese Human Resource Management, 2(1), 43–60. https://doi.org/10.1108/20408001111148720

Williams, W. A., Brandon, R. S., Hayek, M., Haden, S. P., & Atinc, G. (2017). Servant leadership and followership creativity: The influence of workplace spirituality and political skill. Leadership & Organization Development Journal, 38(2), 178-193. https://doi.org/10.1108/LODJ-02-2015-0019

Yusof, J. M. (2011). Spiritual leadership and job satisfaction: A proposed conceptual framework. Information Management and Business Review, 2(6), 239-245. https://doi.org/10.22610/imbr.v2i6.903

Zaitouni, M., & Ouakouak, M. L. (2018). The impacts of leadership support and coworker support on employee creative behavior. International Journal of Productivity and Performance Management; Bradford, 67(9), 1745-1763. https://doi.org/ 10.1108/IJPPM-10-2017-0264

Zhang, S., Ke, X., Wang, X. H. F., & Liu, J. (2018). Empowering leadership and employee creativity: A dual-mechanism perspective. Journal of Occupational and Organizational Psychology, 91(4), 896-917. https://doi.org/ 10.1111/joop.12219.