The Impact of Leadership Styles on Employee Innovative Performance: The Mediating Role of Innovative Behaviour in Saudi Manufacturing SMEs

Authors

  • Saad Alharbi School of Business and Economics, Universiti Putra Malaysia
  • Zuraina Binti Dato Mansor School of Business and Economics, Universiti Putra Malaysia
  • Yee Choy Leong School of Business and Economics, Universiti Putra Malaysia

DOI:

https://doi.org/10.14738/assrj.1207.19083

Keywords:

Leadership Styles, Employee Innovative Performance, Innovative, SMEs

Abstract

This study investigates the differential effects of leadership styles on employee innovative performance within Saudi Arabia’s manufacturing SMEs, emphasizing the mediating role of employee innovative behaviour. Drawing on Path-Goal Theory, Cognitive Evaluation Theory, and Diffusion of Innovation Theory, the study examines the direct and indirect relationships between four leadership styles—transformational, autonomy-based, laissez-faire, and inclusive—and innovation outcomes. A quantitative methodology was adopted, utilizing structured survey responses from 374 leaders and managers across various regions. Data were analyzed using Structural Equation Modeling. Findings reveal that inclusive and transformational leadership significantly enhance innovative performance through their impact on employee innovative behaviour. In contrast, autonomy and laissez-faire styles show limited influence. The mediating role of innovative behaviour proves critical in translating leadership into performance outcomes. This study contributes theoretical insights into leadership and innovation and offers practical guidance for SMEs aiming to boost innovation in emerging markets.

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Published

2025-07-07

How to Cite

Alharbi, S., Dato Mansor, Z., & Leong, Y. C. (2025). The Impact of Leadership Styles on Employee Innovative Performance: The Mediating Role of Innovative Behaviour in Saudi Manufacturing SMEs. Advances in Social Sciences Research Journal, 12(07), 53–69. https://doi.org/10.14738/assrj.1207.19083

Issue

Vol. 12 No. 07 (2025): Advances in Social Sciences Research Journal

Section

Articles

License

Copyright (c) 2025 Saad Alharbi, Zuraina Binti Dato Mansor, Yee Choy Leong

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