Exploring the Impact of Leadership on Encouraging Innovative Behaviours: An Employee’s Perspective

Innovation is crucial in the current business environment amidst uncertainties and heightened competition. The study explored how employees perceive their leaders' behaviour regarding innovations in the service sector. An in-depth interview technique has been employed as part of a qualitative research approach to identifying leaders' behaviours likely to enhance or discourage employees' innovative behaviour. Eight participants with extensive experience in the service sector were selected from various sectors, including consultancy, financial services, and the telecommunications industry in Malaysia. Thematic analysis was used to identify leaders' behaviours that encourage or discourage employees' innovative behaviour at work. The study observed 15 different leader behaviours related to employees' innovative behaviour. Eight behaviours directly drive innovation, five behaviours are indirectly related, and two behaviours hinder employee innovation. The study found that employees' perceptions of innovative role modelling, empowerment, recognition, consultation, development, identifying innovation champions, and rewards positively influence innovation. In contrast, constant monitoring and high workload pressure are seen as obstacles to innovative behaviour. The study contributes to the existing literature by comparing the inventory of leaders' behaviours. It reveals that employees view Corporate Social Responsibility (CSR) positively in terms of innovation, suggesting that further research could explore the magnitude and significance of CSR in various contexts. This study highlights the importance of organisational leaders gaining insight into their employees' perspectives to cultivate idea generation and implementation. When leaders understand their employees' attitudes towards creativity and innovation, they can adjust their leadership style and behaviour to foster a work environment that encourages creativity and innovation.