Innovative leadership affecting organizational performance through organizational culture, strategy of the medium enterprises

Abstract

This research aims to 1) study the level of innovative leadership and organizational performance of the medium enterprises, 2) study the relationship among innovative leadership, organizational culture, and strategy that affect organizational performance of the medium enterprises, and 3) establish and validate the consistency of the causal model of the innovative leadership that affects organizational culture, strategy, and organizational performance of the medium enterprises, which has been developed with empirical data. Samples consist of 303 medium enterprises categorized in (1) 61 retail and wholesale businesses, (2) 103 service businesses, and (3) 139 manufacturing businesses, which are listed in the Office of Small and Medium Enterprises Promotion database. Research findings indicate that 1) the level of innovative leadership and organizational performance of the medium enterprises is high, 2) innovative leadership, organizational culture, organizational strategy, and organizational performance variables have the same direction correlation with relatively low to relatively high degree of correlation, and 3) causal model of the innovative leadership that affects organizational culture, organizational strategy, and organizational performance of the medium enterprises is consistent with the empirical data as follows,  2 = 51.88, df = 48, p = .32 GFI = .98, AGFI =.94. Organizational performance variables receive direct effect with statistical significance of .01 from innovative leadership, organizational culture, and organizational strategy variables with the effect size of .37, .34, and .46, respectively