A MODEL ON THE RELATIONSHIP BETWEEN TRANSFORMATIONAL LEADERSHIP, TRANSACTIONAL LEADERSHIP, ENTREPRENEURIAL LEADERSHIP, AND THE INNOVATION PROCESS

To enhance competitiveness, organisations should excel in adopting new business processes and ensuring the successful implementation of innovative projects. This study examined the impact of transformational, transactional, and entrepreneurial leadership styles on the innovation process, with a focus on employee innovative behaviour and the climate for innovation as mediating factors. A total of 303 participants from three organisations in the financial services sector (banking and insurance) in Namibia took part in the study. The findings suggest that employing transactional and entrepreneurial leadership styles proves beneficial for fostering innovation within organisations. Specifically, entrepreneurial leadership demonstrates positive effects on both employees’ innovative behaviour and the establishment of an innovation-friendly climate. The study reveals that a conducive climate for innovation significantly contributes to overall innovation. Moreover, the results indicate that only the climate for innovation serves as a significant mediator in the relationship between transactional leadership and the innovation process, as well as between entrepreneurial leadership and the innovation process.