From disruption to innovation: The importance of the supply chain leadership style for driving logistics innovation in the face of geopolitical disruptions

The intricate global supply chains and logistics operations have been acutely vulnerable to recent geopolitical conflicts and resulting disruptions. Meanwhile, research shows that the choice of an appropriate leadership style is pivotal for organisations striving to thrive in dynamic business environments and foster innovation. However, the current literature lacks a theory-driven empirical model that delves into the complex interplay between geopolitical disruptions and logistics innovation, as well as the influence of different leadership styles on this interplay. We address this knowledge gap by cross-pollinating logistics management and leadership literature. Drawing upon the strategic contingency theory and analysing 247 responses from manufacturing and distributing firms, our research reveals a multitude of compelling findings. Specifically, we ascertain that geopolitical disruptions exert a significant detrimental impact on logistics innovation performance. At the same time, we uncover the substantial mitigating effects of crises, participative, and transformational supply chain leadership styles on the negative influence of geopolitical disruptions on logistics innovation performance. That is, firms with supply chain leaders exhibiting higher levels of these three leadership styles experience a diminished negative impact compared to their counterparts. Interestingly, contrary to our initial expectations, the directive leadership style does not demonstrate any discernible effect in alleviating the adverse consequences of geopolitical disruptions on firms' logistics innovation performance. These findings contribute to a deeper understanding of the intricate dynamics at play and provide valuable insights for organisations seeking to navigate and overcome the challenges posed by geopolitical disruptions in their pursuit of logistics innovation.