Impact of leadership and group processes on team innovation : a study of R and D teams in Indian public sector organizations

Abstract

In the current scenario, it is imperative for organizations to be innovative not only in order to expand and grow but also to survive in an increasingly competitive, and uncertain environment. Innovation becomes even more critical for R & D organizations whose raison is to deliver new products and improve on existing processes on an on-going basis. In R & D organizations, innovative work/projects are predominantly carried out by teams that solve problems or develop new ideas into new products, making improvements together. R & D organizations recognize teams as critical units to carrying out research and development work. While innovation has been much studied at the individual and organizational levels only a few studies have examined team innovation. Empirical studies focussing on R & D team innovation are few in number. Limited studies have been conducted to examine the relationship of leadership and team innovation in R & D organizations. Further, empirical studies that have examined the relationship between transformational and transactional leadership and team innovation in R & D setting are scarce and findings of such studies are inconclusive and mixed in nature. Not much research has been conducted in the context of laissez-faire leadership and it has been fairly neglected area of research. The impact of laissez-faire leadership behaviour on team innovation has not been studied. Further, less attention has been paid to how team processes in organizations can be a facilitative or inhibitive factor impacting innovation. Many researchers have highlighted the need to examine the role of different team processes that may impact the relationship between leadership behavior and team innovation. There exists a research gap in understanding team processes such as team empowerment, collective psychological capital that may influence the relationship between leadership style and innovation. Only a few studies have examined the influence of transformational leadership on team empowerment and team reflexivity. Also, the impact of transactional and laissez-faire leadership on team empowerment and team reflexivity has not been examined earlier.