The effect of leadership and organisational culture on organisational innovation

The purpose of the study is to explore the impact of company leadership and organisational culture in the development of organisational innovation. The qualitative approach is applied via 12 interviews from six different organisations, encompassing both service providers and product manufacturers, in Sweden and Sri Lanka. Leadership and organisational culture together influence the development of innovation. The findings suggest that process- and job-oriented culture, and transactional leadership, have both positive and negative impacts in developing innovation. Result-oriented, employee-oriented, pragmatic culture and an open system, together with transformational leadership, are found to be more effective. This study helps managers decide how to serve best within the organisational and national culture, while learning about the influential result of the culture and leadership on innovation. This study highlights the importance of leadership and organisational culture's effect on an organisation's innovation and showing how it improves the companies' ability to meet consumer expectations.