The Impact of Leadership on Small Business Innovativeness.
Relevant literature has proved the importance of innovation in small companies to have long-term growth. Although researchers emphasized leadership role in providing better outcomes through innovativeness, there is a lack of evidence that relates aspects of leadership to innovation. Leadership style and negotiation style have been found indicators to innovation. Leaders who inspire others, who negotiate competitively establish environments that can more likely create product innovation. Thereby, this study aims to better understand how leaders have an impact on generating product innovation in small businesses. For this purpose, we elaborated four hypotheses. In order to test the authenticity of our hypotheses, we adapted a quantitative method to collect the data. A survey was distributed through a questionnaire to various small businesses in Lebanon. The questionnaire is composed of closed and semi-open questions. The results of this survey suggested that communication and innovation are positively related. Moreover, research found that negotiation style and innovation are positively correlated. These results propose that by adapting specific strategies, leaders can improve their employees’ innovation in order to increase productivity.
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