Global Journal of Business Management

ISSN 2736-1721

Global Journal of Business Management ISSN 6731-4538 Vol. 3 (12), pp. 001-011, December, 2009. © International Scholars Journals

Full Length Research Paper

The effects of leadership styles and organizational culture on firm’s innovativeness

Ethem Duygulu1* and Emir Özeren2

1University, Faculty of Economics and Administrative Sciences, Department of Business Administration, http://kisi.deu.edu.tr/ethem.duygulu/. Buca-Izmir, Turkey.

2Ya ar University, Faculty of Economics and Administrative Sciences, Department of Business Administration, No: 35-37 35500 Bornova, Đzmir, Turkey.

Accepted 20 August, 2009

Abstract

The ultimate objective of this study is to show the effects of leadership styles and organizational culture on firm’s innovativeness. The study has been conducted over six different firms with a total sample size of 113 employees in order to investigate empirically the joint impact of particular leadership styles (employee orientation, production orientation, change centered leadership) and organizational culture typologies (market, hierarchy, adhocracy ,clan) on firm’s innovativeness within Turkish business context. The most significant finding of the study is that adhocracy culture has been found as a common variable for all firms within the sample in explaining innovativeness. On the other side, based on firm level analysis, it has been shown that for construction and chemical firms market culture, for steel and iron firm employee oriented leadership, for pharmaceutical firm hierarchy and change centered leadership and finally for aviation firm adhocracy culture have been found to explain firm’s innovativeness. Considering the departmental analysis, for production department market, hierarchy and change centered leadership, for marketing department adhocracy culture are determined as common variables in explaining innovativeness within the firm.

Key word: Leadership, organizational culture, firm’s innovativeness, change centered leadership.