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Studying the Influence of Leaders Characteristics on Organizational Innovation through Case Studies of Indian Business Leaders

Davinder Singh, EFPM 2011, MDI, Gurgaon, INDIA

Studying the Influence of Leaders Characteristics on Organizational Innovation through Case Studies of Indian Business Leaders Abstract

The subjects of individual creativity and organizational innovation are being viewed as important for business success. Various themes have emerged from the studies done to understand the relationship that exists between Leaders Characteristics and Innovation. The studies have been done predominantly in the context of developed economies. It is likely that they would be applicable in the Indian context as well. The Indian business landscape has changed since the mid 1990s, when the change in economic policies was initiated, increasing the competition - both internal and external. The organizations needed to embrace and manage change and the need to innovate increased. The Indian Business Leaders, who recognized this and provided transformational leadership to their organization, have led their organizations to high growth. In this paper an attempt has been made to compare the characteristics of such leaders from India to the themes from extant literature. The comparison has drawn a lot from the book In Search of Change Maestros(2011) by Singh, P., and Bhandarker, A., in which they have detailed the profiles of seven Indian business leaders and their organizations. In conclusion the further research has been proposed to study a conceptual model.


Creativity is viewed in terms of output; creative product is defined to be both novel and useful (Amabile et al., 1996). Creativity has been studied at multiple levels - individual, group and organization. Individual creativity is supported by domain-relevant knowledge; processes for creativity and intrinsic motivation (Amabile, 1983). While creativity is exhibited by individuals, an organization consists of many groups of individuals and the

collective creativity can be different from the individual creativity. The creativity of the individuals, working as a group in an organization would be affected by group characteristics, organizational culture, context of the organization (Woodman, Sawyer and Griffin, 1993; Taggar, 2002).

Innovation is considered to be different from creativity. It is a process which is considered to consist of two stages - initiation or generation of a creative idea and execution or implementation of the idea. Innovation is closely related to creativity, and has an element of application which leads to a useful output for the organization. The creativity and innovation of the employees has assumed valuable dimension in the context of contemporary and knowledge driven organizations. The rapid and new changes in technology; competition becoming global; quick and drastic changes in economy; all have put greater demands on organizations to succeed. For this, they need to be creative. The organizations need to generate new ideas and equally importantly, to translate the latter into useful products. This has been an area of study in the recent past (Dess and Picken, 2000; Mumford et al., 2002). Innovation not only requires adaptation of pre-existing products or processes but also encompasses creation of new products and processes; and at times incorporating even those which have been created outside of the organization (Woodman, Sawyer and Griffin, 1993). This leads to change and the successful management of this is dependent on leadership.

Leadership has been identified as one of the important factors that influence the creative behaviour and innovation (Amabile, 1998; Jung, 2001; Mumford and Gustafson, 1988). Their studies have established that leaders can exert influence on the creativity of employees through both direct and indirect ways. The direct way requires taking steps which leads to managing and enhancing intrinsic motivation of the employees; the indirect ways are related

to creating the context, environment and culture which supports the employees creative and innovative pursuit.

These studies have been conducted on the global level and have provided many insights into how leadership can exercise positive influence on the creativity of individuals and organizational innovation. The applicability of the same to Indian Leadership is being attempted through this paper.


The extant literature has been reviewed to identify the themes covering the topic of the influence of leadership on employee innovation and also the organization innovation. The identified themes have been used as a framework to study specific Indian business leaders and their organizations to determine whether the framework fits with the respective case studies. The selection of the business leaders has been done from the book In Search of Change Maestros (2011), Singh, P., Bhandarker, A., Sage. The book covers seven successful business leaders from India who have managed their organizations through challenges and transformed them successfully into much larger enterprises than when they had assumed leadership of the respective organization. The leaders and the organizations that they lead are given in table 1. These organizations cover and operate across wide range of industries panning across raw commodities, industrial goods, telecom, retail, bio technology, financial markets, and infrastructure. Each one of these leaders is a leader of leaders; they head organizations which are conglomerate of multiple businesses and profit centres, each having a senior person in the leadership role, who reports to them. Change and Innovation has been integral to the transformation affected by these leaders. The book provides in-depth quantitative and qualitative information about each of the leaders and the respective

organizations. The information has been used to identify and verify the fit with the themes obtained from literature review.

As part of the study, Singh and Bhandarker (In Search of Change Maestros, 2011) collected data about the Leaders Characteristics and Organizational Culture. They collected the data through two methods - survey research among the leader and the senior executives of the organizations who have had interaction with the leader, and through in-depth interviews with leaders themselves and the senior or top executives of their respective organizations and close family members of the leaders. For the survey Singh and Bhandarker (referred to as researchers in this paper) used two inventories, one each for Leaders Characteristics (termed Change Maestro Inventory) and Organizational Culture (termed Organizational Culture Inventory). The Change Maestro Inventory had 35 items with the 5 point Likart type scale for recording the response to each item. It was prepared by researchers after conducting focus group discussions among 175 executives (MDI alumni) with at least 5 years of work experience. An initial inventory having 65 items was tested among sample of 333 executives. Using the factor analysis these 65 items were reduced to 35 items which were included in the final inventory. Organizational Inventory was prepared on basis of the extensive literature review by the researchers. The inventory had 62 items at the start, which was reduced to 33 items. For this, the researchers had administered the initial inventory among sample of 333 executives and used factor analysis on the data obtained. The final inventory of these 33 items was used with the 5 point Likart type scale to record the response to each item.

Table 1: Indian Business Leaders and their organizations studied by Singh, P., and Bhandarker, A. (2011), In Search of Change Maestros, Sage Turnover (Rs Billions) S. No. 1 Leader Kumar Mangalam BIRLA 2 Sajjan JINDAL JSW Steel Ltd.(JSW Group) Organization A.V. Birla Group (AVBG) Businesses Industrial Raw Materials, Trading, Telecom, Retail, Insurance, Chemicals, Textiles, Agri Business Steel, Infrastructure, Energy, Information Technology, Minerals Banking 2003 126.23 2009 455.73 Change 261% Net Profit (Rs Billions) 2003 10.63 2009 Change 50.39 374%





4.59 514%







37.58 212%


Bharti Airtel

Telecom, Retail, Insurance, Agri Business


373.52 219618%


78.59 3929400%



Construction, Engineering, Power/Energy, 108.57 Information Technology, Financial, Shipbuilding Biopharmaceuticals, Contract Manufacturing, Research, Licensing 2.77




30.07 691%

Kiran M. SHAW

Biocon Ltd.




1.12 211%


Unit Trust of India(UTI) & Financial Market, Banking Industrial Development Bank of India (IDBI)

Information about the financials not presented

The interviews were conducted with the leaders being studied and the senior executives of their organizations. The latter, by virtue of their position in the organization, had interacted with the leader and could, therefore give the responses basis these interactions instead of the hearsay. Each person was interviewed individually; the purpose of the study and the description of the process were explained; enquiries were made into the predetermined areas; and responses were recorded. The same process was used with the leaders themselves.

The researchers analysed the data using the techniques of content analysis for the in-depth interviews; and grounded theory method to arrive at the emergent model of Change Maestros. The researchers conducted exploratory factor analysis on the responses to the two inventories and clubbed the items of the two inventories into 12 factors (6 each for Leaders Characteristics and Organizational Culture) and conducted the inter-correlation analysis among these factors.

In the following section the various themes obtained from the extant literature would be considered and the examples from the case studies would be considered which support the themes. This would be followed by the discussion based on the analysis done by Singh and Bhandarker to present a conceptual framework on how Leaders Characteristics relate to Organizational Culture, Individual Creativity and Organizational Innovation. The examples are drawn from the work of Singh and Bhandarker, In Search of Change Maestros and hence, the reference credits have not been given individually.

Themes for Leadership influence on employees and organization innovation.

Leadership needs to be oriented to change and development to build competitive advantage in changing industry and economic conditions - Arvonen and Pettersson, 2002. Companies and organisations today face an environment that implies global competition, variable customer needs (Hammer & Champy, 1993; Howard, 1995), The new business environment demands capabilities for leadership to manage development, radical innovation, alongwith, cost effectiveness. Cost-effectiveness requires a combination of structure and relationsorientated leadership behaviour. Change-effectiveness and innovation require combination of change and relation-orientated leadership behaviour.In mid 1990s the economic policies of India started to change, ushering in increased competition, from both internal and foreign companies. The leaders who recognised this and oriented their organizations to change were able to create competitive advantage which not only ensured the survival but also long term growth.

K M Birla of AV Birla Group (AVBG) assumed the role of CEO for the company in 1995. He recognised that the change in economic policies required the company to undergo transformation. It was decided to focus on those businesses where the group could be a leader and the others were divested. The group also made bold moves into new business opportunities which emerged following the liberalisation of the economy. The company entered the business of telecom, insurance and retail. The heads of various businesses of AVBG when interviewed stated, We do not miss (business) opportunities and quickly respond; We constantly scan the environment for new opportunities and capitalize on them by building appropriate strategies.

L&T, which is headed by AM Naik, focuses on tomorrow, spots emerging opportunities, and prepares effectively to respond to them, (Singh and Bhandarker, 2011). AM Naik launched Project Blue Chip which according to the senior executives of L&T, ...made us think a little bigger than what we have been doing; across the company, he (AM Naik) made thinking ahead a habit.

Sajjan Jindal of JSW group recognised the need to change the family business of steel rolling that he inherited in 1990s. The group went for backward integration and entered steelmanufacturing. The group entered the power business on recognising the change in the power industry where the domination of government held companies was giving way to private companies.

Leaders who define group goals, create contexts, and conditions are successful in motivating the followers to engage in innovative efforts required to accomplish these goals, Lee, 2008. When leaders contribute to problem construction, and encourage self-efficacy among the followers, it results in higher subordinate creativity, (Redmond, Mumford, and Teach, 1993)

Sunil Mittal of Bharti Airtel is known within his company as a visionary. The senior executives of the company, when interviewed stated that even when neither he nor his company were big, he envisioned Airtel to be the leader in telecom in both India and across globe. Today Airtel has the largest subscriber base in India and the company has been increasing its operations to other geographies, including Africa. Sunil Mittal emphasises the need to be customer centric and take care of even the low revenue subscriber. He articulated the customer orientation at Airtel, we are very touchy when a customer comes back to us

saying he is not satisfied with our services, it is like a crisis in the organization everybodys goal is to build businesses which are serving the customer. KV Kamath headed ICICI Bank and positioned it as Indias largest bank. His belief in Nothing is Impossible led to his team to view innovation as essential to achieve the goals. The senior leadership on being interviewed said The key drivers of innovation in this organization are the audacious even irrational goals. The tried and tested ways, we believe, can only give incremental results.

M Damodaran a civil servant from Indian Administrative Service (IAS) led the transformation of two financial organizations - Unit Trust of India(UTI) and Industrial Development Bank of India(IDBI). On assuming the role of leader for these organizations, M Damodaran scripted a vision for the organization along with the senior leaders of the organization and experts from outside. The employees describe In IDBI we needed someone with a vision and Damodaran provided that vision. He could really anticipate issues that the bank would face both in the short term and the long term, and prepared the organization to face both.; He had a positive agenda for UTI; (he) had a vision to make it succeed, he created a structure around that and he managed the whole process. A leader is required to create a climate that is conducive to employees creativity and innovativeness, Amabile et al., 1996; Mumford and Gustafson, 1988. Leader needs to provide climate which is relevant to the kind of innovation being pursued. For the incremental innovation, where in minor changes are made to the existing products or processes, a climate characterized by well-defined goals and challenging expectations is desirable. On the other hand, when innovation is more radical, with generation of new understandings, the leader would need to provide more than well-defined goals. A climate

that encourages risk taking during the process would be important, and needs to be the concern of the leader.

Kiran M Shaw of Biocon has encouraged her team to develop a sense of ownership. The employees say, there is freedom, if you want to do something which is good, you have the freedom to do it Biocon is horizontal, transparent and interactive. The employees at Biocon are respected for their ideas and this is not related to the persons age or duration with Biocon. The culture is described as open and seamless by the employees. They say, infact if there is a problem faced by someone, he can even go across to different groups directly and get help without having to go to the heads of those groups for permission. The status quo is not encouraged and people are encouraged to challenge it. in Biocon we strongly encourage people to question; there is a very debate oriented and discussion oriented culture here. At Bharti Airtel, Sunil Mittal has instilled entrepreneurial innovation culture. The executives when interviewed described their company saying we have a small company soul and we move with lightning speed. The phrases used by them include positive disquiet, creative dissatisfaction and restlessness to describe the culture.

Like companies from other case studies, Sajjan Jindal of JSW group places a great emphasis on action and execution. He wants to achieve the goals faster and constantly challenges his team to better their past performance. He is ruthless in execution. If the original project schedule is December, in the next visit hell say it has to be by September. Sajjan Jindal supports his team in risk taking and there is a tolerance for mistakes or setbacks experienced when people or the team pursue new initiatives.


The AVBG group also provides a culture of looking for new ideas which inherently have risk associated to them. The action and execution orientation built and supported by KM Birla encourage the company to innovate. A senior executive commented, when I take a decision, I do not have to look over my shoulder; I know that Mr. Birla would support and encourage me to be entrepreneurial.

In L&T, the philosophy of empowerment is underpinned by enabling people to perform, deliver results, be creative, and have the ability to take risk and display entrepreneurial behaviour. Mr. Naik ensures that empowerment results in high quality performance for L&T. - executives at L&T.

At ICICI Bank, MV Kamath has emphasised on speed of execution. There is a 90-day rule in the organization. anything new and different has to be put into practice within ninety days. The company gave the team responsible for listing of ICICI stock on NYSE a period of 90 days for execution.

The culture of entrepreneurial freedom and empowerment comes along with the accountability. There is no abdication of responsibility. The companies discussed have institutionalized the performance management system which incorporates greater rewards for higher performance.

Leader should empower followers, enhance their self efficacy; and provide intrinsic motivation to encourage innovativeness, Amabile , 1998. Creativity of an individual is positively impacted by Expertise, Thinking Skills and Motivation. Building Exeprtise and Thinking Skills are critical and need to be enhanced, but the process takes long time. Motivation , on the other hand, can be created quickly, but is a task which can challenge a leader. Inorder to motivate the team members, the leader needs to provide them with

challenges that match their expertise and thinking skills. The leader also need to ensure that they provide freedom, resources, and supervisory encouragement. The extrinsic motivation, in form of rewards or penalty, could provide a result, however, this result is likely to be inferior to one that the member would provide, if there was intrinsic motivation. Kiran Shaw describes how she provides intrinsic motivation to her team. I always tell people, we want you to own problems, not tasks. I want to throw a problem at them and say, Solve it. because thats what makes them a much better researcher, a much better manager,the moment they solve a problem, they get a great sense of confidence and achievement which spurs them on to doing much more.

M Damodaran uses his ability to communicate to motivate his team. He is polyglot and chooses his language depending on the person he is interacting with. He can not only connect with them but also provides them the confidence of his support. His team felt accountable to provide good performance to ensure that his confidence and trust in them was reciprocated.

KM Birla does not impose goals or targets; he works with his team and they are developed and agreed in a consensual style. He has created a sense of belonging and pride among the employees. He does not come to meetings with the intent to announce or impose his decisions. The team does not need to seek his consultation on operational matters as he has empowered them.

Sunil Mittal not only empowers his team but also encourages them to take bold decisions. He provides them the assurances,go ahead and take the decision. I will back you if something goes wrong. As long as your heart is in the right place when you took that decision, dont worry about the consequences. The senior executives in their interview recounted that this empowerment inspires them to be innovative, take risks, and be fearless during execution.

Sajjan Jindal exudes optimism and is not discouraged by failures. He empowers his team to take decisions which have significant impact on the business but ensures that they are not weighed down excessively by the accountability that accompanies such decisions. He leads them from front; when new and hitherto untested technology was to be used by the group, he was personally present so as to demonstrate his confidence in the team working on this and also to share the risk and success with his team.

The transformational leaders align the value of their followers to that of their own and organizationss values; and are able to increase the intrinsic motivation among followers, Gardner and Avolio, 1998.

The ethical values practiced by all the seven leaders are high. They do not see a conflict between the values and the business and lay equal emphasis on the means as on the ends.

KM Birla view people in AVBG not as resources but as human beings who are partners and stakeholders in the success of the organization. One of the CEOs at an AVBG company spoke about the group, are not treated as a number; one is a person, one is empowered, we get respect from bureaucracy because we do nothing underhand nor do we grease palms. The high standards of ethical behaviour and governance is not only talked about but is practised by KM Birla. He assures the team not to worry about the hit to the business when practicing the values of AVBG. He lays equal importance on means as on the ends. The internal scoring of AVBG by its senior executives on ethical governance is the greatest among all attributes scored by the authors of In Search for Change Maestros.

Sajjan Jindal ensures that the organization wide benefits like education, health care and community celebrations provided to the employees are common to all and are not based on


class or position in the hierarchy of the employees. The visible practice of the same by him ensures that others imbibe it as well.

Sajjan Jindal and Sunil Mittal both lay great emphasis on execution and ability to innovate. They both value the ability to make bold decisions and execute them and provide support to the team in order for them to be able to overcome risks and mistakes. This has made their organizations and the employees to be action oriented and strive for results and superior performance. JSW and Bharti Airtel score high on Result Orientation, Performance Excellence and Entrepreneurial dimensions of Organizational Culture.

High quality exchange between leader and follower with open sharing of ideas; wide information exchange results in trust and enhances innovative behaviour, Scott and Bruce, 1994; Isaken and Laver, 2002; transformational leaders orientation to innovation and the intellectual stimulation they provide enhances followers innovativeness, Mumford et al, 2002

K V Kamath of ICICI Bank recognises the need to build talent. He has successfully developed leaders who have taken on greater responsibility and themselves become leader of leaders. Many of these are women - Chanda Kochhar, Shikha Sharma, Kalpana Morparia and Vishaka Mulye. KV Kamath personally engages with the leaders of his organization and challenges them on change. He is known to say You have been hands-on leader, now you have to become hands-off, challenging them to think on how to include strategy and thinking in their style. Sunil Mittal is described by his team as having tremendous listening ability. Sunil makes them feel special and valued. He does not hesitate to acknowledge what he does not understand and is open to asking questions from others. He is curious, likes to experiment

and constantly explores new business models, managerial practices. Employees on meeting with Sunil feel invigorated and admit to having being impacted positively by Sunil Mittal.

Sajjan Jindal has un-quenching thirst for learning and has visited all major steel plants of the world to learn the best practices followed there. He encourages his team to have the desire to learn constantly. Once he and some of his executives had visited L&T and on return he asked his team ...what did we learn from L&T and how can we use it in JSW for further improvements.

KM Birla is known to always listen to the ideas of others. In meetings, he would ensure that he gets to hear the view points of everybody. He also gives attention to the non verbal cues to understand the emotions and the motivations of all who attend the meetings.

KV Kamath is known to pose challenges and provoke team; he displays strong intellectual capabilities which not only is admired, but also inspires his team. His strong memory and ability to connect the seemingly diverse information leads to his team preparing well and being alert. Many of his team members commented that Mr. Kamath is a great learner and picks up knowledge, information, ideas from anywhere and everywhere. He is known to have met a bollywood film producer and applied what he learnt to ICICI business.

AM Naik would ask for presentations to be made not by the senior most person but by managers who are 2-3 rungs lower in the organization hierarchy. He uses this to identify the potential future leaders; and to them he gives challenging assignments. He constantly learns from his interactions with people and constantly evaluates his performance. His team comments Every area he worked as a leader he mastered that subject and accepted it as a challenge; he was a very good manufacturing man when he started his career; then he understood he must know business; then he became a good marketing man; he understood all

business, then he understood finance. AM Naik describes his learning style as My learning is through interaction, introspection and practicing to improve for tomorrow.

Kiran Shaw, like other change maestros of the study, is extremely receptive to new ideas, is highly innovation oriented. Her team highlighted that she constantly asks them for how to do things differently. Instead of using reverse engineering she poses the challenge to make new discoveries and innovate.

Damodaran challenged the teams at UTI and IDBI into developing a vision for their respective organizations. He brought in experts to provide the stimulus and the direction to the exercise. He is known to have brainstorming sessions with his team which allows for them to think differently and creatively in a group and at organization level. He challenged the team with questions like Can we do it differently? and Can we find out ways and means to surmount the problems blocking the fettered performance? He encouraged his team to re-examine the processes and if required, change them. This helped the team to think different and provide innovative process changes. Leaders efforts to use power, conformity pressure to induce innovativeness are likely to be futile, Mumford et al., 2002

KM Birla is polite and never imposes any decision on the strength of his position. He has refined his communication skills to a level where he does not require being loud to be effective. Sajjan Jindal, likewise, is known to provide equal attention to all and does not use power of his position to get compliance. He gets commitment from his team by empowering them and supporting them. Kiran Shaws style of constantly challenging her team for innovation is not accompanied with any bully behaviour but with her passion and belief in


herself and her teams capabilities. The team members are allowed to pursue the problems of their interest instead of being commanded to work on projects chosen by seniors.

AM Naik who is known to be a tough boss does not disrespect others and does not impose his views; rather he leads from front. He exhibits tireless zeal for his work and puts in long hours. Sunil Mittal has built a team of professional entrepreneurs and has empowered them; he engages with them on strategic thinking and leaves the execution responsibility with them.

Simplicity of thinking and behaviour is a common trait of all the leaders covered. All leaders covered in the study have strong humane perspective and provide respect to all team members. Their organizations have diversity in the workforce and people from different nationalities, culture work together without any prejudices.

Data Analysis The Leaders Characteristics as obtained through the exploratory factor analysis by Singh and Bhandarker, 2011 consist of a) Enabler, b) Excellence Seeker, c) Direction setter, d) Visionary Strategist, e) Role Model, f) Credibility. The individual items that are grouped into these factors are given in Annexure A. The variance explained by these factors, the Eigen values and Cronbachs Alpha have been given in table 2. The factors explain close to 60% of the variance and all have Eigen values greater than 1; Cronbachs Alpha for these factors meets the requirement of 0.7 or more to indicate statistical adequacy and scale reliability (Nunnally, 1978).


Table 2: Factors for Leaders Characteristics (Singh and Bhandarker, 2011)

The Organizational Culture of the organizations that are led by these leaders consist of the factors a) Excellence centric, b) Stakeholders focus, c) Experimenting, d) Goal and role clarity, e) Boundary-less communication, f) Centralization as given in table 3. The Eigen values for these are >1 and Cronbachs Alpha values are > 0.7 . The items which have been grouped into these factors are listed in Annexure B. The factors explain 61% of variance. Table 3: Factors for Organizational Culture (Singh and Bhandarker, 2011)

The items which are closely related to organizational innovation are a) Nurturing Innovation, b) Focus on Continuous Improvement, c) Openness to New Ideas, d)

Entrepreneurial; they are clubbed together in the factor of Excellence Centric. The other items which are related to innovation through the support they provide include Tolerance to Differences, Support for Risk-taking, Empowerment and Delegation are clubbed together in the factor Stakeholders Focus. The factors Enabler, Visionary Strategist and Direction Setter consist of items which are similar to the leaders characteristic described in the themes covered earlier in this paper. These are is open to new ideas, has empowering and supporting attitude as part of Enabler; is innovative and creative, is entrepreneurial, is a visionary as part of Visionary Strategist; provides a sense of clear direction as part of Direction Setter.

The inter-correlations among the factors given in table 4 show that there is high and significant correlation of Excellence Centric factor of Organizational Culture with Visionary Strategist(0.592), Excellence Seeker(0.535), Enabler(0.504) and Direction Setter(0.478) factors of Leaders Characteristics. Similar high and significant correlations were observed for Experimenting factor with Enabler(0.534), Visionary Strategist(0.451) and for Stakeholders Focus with Enabler(0.582) and Visionary Strategist (0.452). This indicates that Leaders Characteristics is related to Organizational Culture and Organizational Innovation.


Table 4: Means, SD, Inter-Correlations among the factors for Leaders Characteristics and Organizational Culture (Singh and Bhandarker, 2011)

N= 525; * significant at 0.05 level ; ** significant at 0.01 level


Conceptual Model

Basis the discussion of the literature on the subjects of leadership and innovation and the study of leaders characteristics and organizational culture in Indian context done by Singh and Bhandarker, 2011 a conceptual model is being presented in figure 1. Leaders Characteristics

Individual Creativity

Organizational Culture

Organizational Innovation

Figure 1 : Conceptual Model : Impact of Leaders Characteristics and Organizational Culture on Individual Creativity and Organizational Innovation.

Basis the discussion of the literature on the subjects of leadership and innovation and the study of leaders characteristics and organizational culture in Indian context done by Singh and Bhandarker, 2011 a conceptual model is being presented in figure 1. The relationship between Leaders characteristics and Organizational Culture has been studied and established by the study conducted described earlier in this paper. The relation that these have on Individual Creativity and Organizational Innovation has been implied in the themes obtained from the literature review. The empirical substantiation of the same in Indian Business context is possibly an area of further research.


The paper establishes that the themes obtained from earlier research conducted in developed economies to study the impact that Leaders Characteristics have on Individual Creativity

and Organizational Innovation are applicable in Indian context. There are both qualitative data with rich information and quantitatively verified support to this. The model which has been proposed includes this and builds upon further to provide understanding on how the various construct impact Organizational Innovation, which is important for both academicians and practicing managers.

References Major reference: In Search of Change Maestros (2011), Singh, P., Bhandarker, A., Sage

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Isaksen, S.G. and Laver, K.J. (2002), "The climate for creativity and change in teams", Creativity and Innovation Management, Vol. 11, pp. 74-86. Jung, D. I.,(2001), Transformational and transactional leadership and their effects on creativity in groups, Creativity Research Journal, Vol. 13, pp. 185-197 Keller, R.T. (1992), "Transformational leadership and the performance of research and development project groups", Journal of Management, Vol. 18, pp. 489-501. Lee J.(2008), Effects of leadership and leader member exchange on innovativeness, Journal of Managerial Psychology, pp.670-687 Mumford, M.D. and Gustafson, S.B. (1988), "Creativity syndrome; Integration, application and innovation", Psychological Bulletin, Vol. 103, pp. 27-43. Mumford, M.D., Scott, G.M., Gaddis, B.P. and Strange, J.M. (2002), "Leading creative people: orchestrating expertise and relationships", The Leadership Quarterly, Vol. 13, pp. 705-750. Nunnally J. C.,(1978), Psychometric Theory, 2nd edn., McGraw-Hill: New York Redmond, M.R., Mumford, M.D. and Teach, R. (1993), Putting creativity to work: effects of leader behaviour on subordinate creativity, Organisational Behaviour and HumnaDecision Processes, Vol. 55, pp. 120-51. Scott, S.G. and Bruce, R.A. (1994), "Determinants of innovative behaviour: a path model of individual innovation in the workplace", Academy of Management Journal, Vol. 37, pp. 580-607 Taggar, S., (2002), Individual creativity and group ability to utilize individual creative resources: A multilevel model, Academy of Management Journal, Vol. 45(2), pp. 315330 Woodman R.W., Sawyer J.E., Griffin R.W. (1993), Toward a Theory of Organizational Creativity, The Academy of Management Review, Vol. 18(2), pp. 293-321.


Appendix A : Rotated Component Matrix of Leaders Characterisitcs


Appendix A : Rotated Component Matrix of Leaders Characteristics (contd.)


Appendix B : Rotated Component Matrix of Organizational Culture


Appendix B : Rotated Component Matrix of Organizational Culture (contd.)