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2019 | OriginalPaper | Chapter

12. Role of Leadership Style on Corporate Entrepreneurship and Firm Innovativeness: Learnings from Start-ups in Emerging Markets

Authors : Rajeev Verma, Jyoti Verma

Published in: Business Governance and Society

Publisher: Springer International Publishing

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Abstract

Contemporary research on start-up firms primarily focuses on business growth and its contribution into the mainstream business economies. Research featuring leadership impact of business promotors on firm-level outcomes, particularly corporate entrepreneurship and firm innovativeness, have been unexplored. This is partially because the underlying mechanism remains largely unexplored in the context of start-ups. However, the way start-up promotors think is having an influence on firms’ strategies and outcomes. We examine how two distinct leadership styles, transformational and transactional, each influence firm innovativeness and corporate entrepreneurship. In our research, we propose that decentralization of decision-making and risk-taking ability of start-up promotors mediates the relationship between leadership style and firm innovativeness and corporate entrepreneurship. Using a sample of 109 start-ups registered under the government’s Startup India programme, we studied these relationships. Our results suggest that the transformational leadership style is strongly related to corporate entrepreneurship and influences firm innovativeness, whereas transactional leadership encourages centralized and risk-averse decision making.

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previous chapter Emotional Intelligence in the Workplace: A Comparative Study of Male and Female Bank Employees in the Public Sector
next chapter Analysis of Factors of Advantages and Disadvantages in the Business Scenario of Northeast India: The Entrepreneur’s Perspective
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Metadata
Title
Role of Leadership Style on Corporate Entrepreneurship and Firm Innovativeness: Learnings from Start-ups in Emerging Markets
Authors
Rajeev Verma
Jyoti Verma
Copyright Year
2019
Publisher
Springer International Publishing
Book
Business Governance and Society

Print ISBN: 978-3-319-94612-2

Electronic ISBN: 978-3-319-94613-9

Copyright Year: 2019

DOI
https://doi.org/10.1007/978-3-319-94613-9_12