Leadership and Innovation Strategies

This assignment delves into various research studies and articles that examine the relationship between leadership and innovation. It includes a collection of papers from prestigious journals such as the Journal of Organizational Behavior, European Journal of Innovation Management, and others. The topics covered range from transformational leadership and product innovation to balanced diplomacy and authentic leadership. The summary provides an overview of the key findings and implications for management practices.

A study on the role of leadership in promoting innovations- Case of Microsoft under Satya
Nadella
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Abstract
Leadership efficiency is highly significant for every organisation to boost their market
performance. The current study aims to conduct a detailed research on the significance of
leadership on innovations by considering the case of Microsoft. Additionally, the objectives of
the study also include understanding the dimensions that impact innovation in the electronic
industry and to assess the role of leadership on innovations. The leadership of Satya Nadella, the
CEO of Microsoft will be also examined in the study. The inferences gathered through the
literature examination indicates that organisational culture, resources, research and development,
leadership efficiency and organisational structure are the major factors influencing the leadership
efficiency to promote innovations in an organisation. Besides, the literature also shows that
leadership is highly important for improving the innovation in electronic industry. The current
study adopted the case study method by adopting secondary research method. In addition to this,
the descriptive method was utilised to research on the topic.
The case study inferences indicate that leadership is highly significant for the development of
every industry, especially electronic industry. While examining the case of Microsoft, it is
evident that research and development tactics, leadership efficiency, cultural factors were
significant drivers of the innovative development of the firm. The leadership efficiency of Satya
Nadella was also beneficial for the development of Microsoft. As recommendations, employee
training for emphasising work-life harmony for innovation and employee grievances and their
considerations for enhancing innovative productivity were recommended.
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Contents
Chapter 1: Introduction....................................................................................................................6
1.1 Introduction............................................................................................................................6
1.2 Research Background............................................................................................................6
1.3 Problem Statement.................................................................................................................6
1.4 Research aim, Objectives and Questions...............................................................................7
1.5 Research scope and limitations..............................................................................................7
1.6 Research structure..................................................................................................................8
Chapter 2: Literature Review...........................................................................................................9
2.1 Introduction............................................................................................................................9
2.2 Leadership..............................................................................................................................9
2.3 Leadership Theories...............................................................................................................9
2.4 Factors influencing Innovation............................................................................................11
2.5 Role of leadership in promoting innovation........................................................................12
2.6 Link between previous studies and current studies.............................................................13
2.7 Conceptual framework.........................................................................................................14
2.8 Summary..............................................................................................................................14
Chapter 3: Research Methodology................................................................................................16
3.1 Research philosophy............................................................................................................16
3.2 Research approach...............................................................................................................16
3.3 Research design...................................................................................................................16
3.4 Research strategy.................................................................................................................17
3.5 Data collection.....................................................................................................................17
3.6 Limitations and challenges..................................................................................................18
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Chapter 4: Data Analysis...............................................................................................................19
4.1 Introduction..........................................................................................................................19
4.2 Data Analysis.......................................................................................................................19
4.3 Case study............................................................................................................................19
4.3.1 Importance of leadership in the electronic industry with reference to case of Microsoft
...............................................................................................................................................19
4.3.2 Factors influencing innovation in the electronic industry: the case of Microsoft........20
4.3.3 Leadership effectiveness of Satya Nadella on promoting innovations in Microsoft....21
4.4 Case study analysis..............................................................................................................22
4.5 Judgement of findings..........................................................................................................24
Chapter 5: Conclusion and Recommendation...............................................................................26
5.1 Conclusion...........................................................................................................................26
5.2 Recommendations................................................................................................................26
5.3 Recommendation for future research...................................................................................27
References......................................................................................................................................29
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List of figures
Figure 2.1: Conceptual Framework…………………………………………………………..14
Figure 4.3.1: R&D investment by companies in the electronic industries…………………….19
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Chapter 1: Introduction
1.1 Introduction
The current chapter will describe the research aim, objectives and question of the recent research
study. Moreover, the current chapter also explains the research background and problem
statement that linked to the present research topic. In addition to that, the researcher will mention
a brief description of the investigation topic.
1.2 Research Background
The main variables of the present chapter are leadership and innovation. From the report of
Northouse (2018), it was analysed that leadership is the art of encouraging a unit of the
individual in order to perform towards accomplishing common objectives. In addition to that, in
the business context, leadership instructs the employees as well as staff with a precise tactic to
accomplish the necessities of the enterprise. Besides that, innovation is the process of
transferring a new concept or invention into service or product in which it manufactures value
for which clients will pay money (Aghion et al., 2019). Moreover, Elrehail et al. (2018)
described that leaders have a high influence on innovation because the leader can impact the
enhancement of structures as well as values that influence the character of individual towards
innovation as well as learning. Anyhow the current study is mainly focusing on the significance
of leadership and its impacts on promoting innovation by concentrating more on the case of
Microsoft.
1.3 Problem Statement
The significant aim of the present study is to analyse the role of leadership in promoting
innovation in the organisation. Moreover, leadership have an efficient role in boosting the
innovation of the organisation. Bratton (2020) stated that leadership is an inevitable factor that
makes the performance of the employees more efficient as well as innovative way. Further, the
present study is mainly concentrating on the case study of Microsoft under Satya Nadella. While
analysing the case of Microsoft, due to the lack of innovation, Microsoft outpaced by
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competitors during the leadership of Steve Ballmer. But, Satya Nadella moves towards more
innovative products such as "mobile first, cloud first" instead of traditional desktop and software.
Furthermore Satya Nadella makes the Microsoft Company more profitable through his
innovative thinking and good leadership style. Alongside, it is identified that enthusiasm,
genuine and positive attitude of Satya Nadella has helped the company in achieving success.
Based on Satya Nadella, every leader should have three things, namely success, clarity and
energy. This positive attitude of Satya Nadella has helped Microsoft to attain heights when
compared to the leadership of Steve Ballmer. The change brought by Satya Nadella during recent
years in revenue, innovation and profit will be analysed through this study for tracing out the
importance of leadership in the electronic industry. Moreover, this study is developed to identify
how Microsoft Company has achieved better success during the leadership of Satya Nadella.
1.4 Research aim, Objectives and Questions
Aim
The significant aim of the recent study is to analyse the role of leadership in promoting
innovation by focusing more on the case study of Microsoft under Satya Nadella.
Objectives
 To evaluate the significance of leadership in the electronic industry
 To assess the dimensions that impact innovation in the electronic industry.
 To evaluate the role of leadership on promoting innovations in Microsoft
 To provide with sufficient recommendations on improving leadership through innovation
at Microsoft
Questions
 What is the significance of leadership in the electronic industry?
 What are the factors that impact innovation in the electronic industry?
 How does the role of leadership impact on promoting innovations in Microsoft?
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 What are the major recommendations to be facilitated by Microsoft on improving
leadership through innovation at Microsoft?
1.5 Research scope and limitations
Leadership have a significant role in enhancing the innovative culture of the organisational,
especially in the electronic industry. Hence the study helps to understand the major role of
leadership on enhancing the innovation in the firm. Further, the major limitation encountered by
the researcher while conducting the recent study was the absence of primary data (current study
selected secondary data) because it reduces the accuracy of the present investigation.
1.6 Research structure
1.7 Summary
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The current chapter provided a brief description regarding the recent investigation also discussed
the aims objectives, structure along with the rationale and background of the present research
study.
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Chapter 2: Literature Review
2.1 Introduction
The current chapter is mainly discourses the relevance and pros and cons of the research
variables such as leadership and innovation. Moreover, a recent study will describe the major
factors that influence innovation in the electronic industry. In addition to that, the present study
will outline the conceptual framework by attaining significant themes of the current study.
Besides that, the link between the present and existing studies in connection research topic also
explains in the current chapter. Apart from that, for attaining precise data, the researchers focus
more on the case study of Microsoft under SatyaNadella.
2.2 Leadership
According to the viewpoint of Rosenbach (2018), it was disclosed that leadership mentions to the
way in which the management of the enterprise builds in terms of the organisational culture.
Moreover, in the business context, leadership is the capability of the firm’s management in order
to build as well as accomplish stimulating, relevant objectives, take relevant decision and make
precise achievement when required and motivate others to complete at the greatest level. As per
the opinion of Northouse (2019), it was analysed that leadership provide various benefits to the
organisation such as motivate employees for progressively attaining the important goals and
hence increases the productivity and sales of the company. On the other hand, Rahim et al.
(2016) describe that leadership cause some negative impacts on the business context of the firm
such as the leaders take time away from performing tasks and raise a smash of personalities.
Likewise, Woo (2019) opposes that in some instances, the leaders make the decision making the
process slow, and they demotivate employees by taking decisions that not comfortable for the
entire employees of the firm. Apart from that, the main characteristics of the Leadership are
Empathy, Reliability, Creativity, effective feedback, patience, active listening, effective feedback
and positivity (Leithwood, 2019). However, leadership have an efficient role in enhancing and
declining the overall performance of the organisation.
2.3 Leadership Theories
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Transactional leadership theory
Transactional leadership theory is the emphasis more on building a clear structure of rewards and
punishments for diverse performances within every relationship. Besides, this theory is mainly
adopted in international agreements, corporate environments and military operations (Antonakis
and House, 2014). Further, transactional leadership theory involves directing and motivating
teammates mainly through appealing to their self-interest (McCleskey, (2014). As studied by
Laohavichien (2009) based on the rewards, the transactional theory is highly effective in
encouraging in becoming an efficient and productive team member.
In contrast, Pieterse et al. (2010) opined that transactional leadership theory limits the amount of
creativity and innovation that is attainable. Transactional leaders are unyielding and rigid. At the
same time, this leadership reduces the production process of individual and limits innovation
which results in de-motivating and discouraging employees from performing effectively and
achieving success (Khan, 2017).
Transformational leadership theory
Transformational leadership theory is the emphasis more on how leaders can make a positive and
valuable change in their teammates Harms and Credé (2010). Birasnav (2014) opine that
transformational leaders are highly enthusiastic, energetic and passionate, and also they are an
outstanding role model, and their followers emulate several of their actions. However, Rowold
(2014) opines that the transformational leadership theory is highly challenging to be taught or
trained due to the facts that it is a culture of diverse leadership theories. Additionally, when this
leadership is adopted in an organisation, it can result in reducing prioritisation and task focus of
employees which will result in delayed or missing projects or tasks (Choi et al., 2016). It is also
clear that the adoption of this leadership can reduce the commitment of employees towards the
organisation and as a result accomplishment of tasks is not possible. Thus adoption of
transformational leadership theory cannot always deliver success for the organisation and based
on situations the organisations have to alter leadership styles or bring changes in existing
leadership style.
Authentic leadership theory
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Authentic leadership theory is a management style in which leaders act more sincerely and
genuinely that is real to who they are as an individual (Ladkin and Taylor, 2010). The
fundamental characteristics of the authentic leaders are that they are emphasised more on
delivering long term results, and also they are more committed and disciplined to their own
growth and improvement. Wong and Laschinger (2013) contradict that the authentic leadership
theory does not have a unified and coherent theory, with various researchers mentioning their
flavour to what it means to be an authentic leader. Likewise, authentic leadership theory
promotes organisations to focus on positive elements by reducing motivation and increasing
defensiveness. This approach towards employees will result in reducing employee commitment
and responsibility towards the organisation. In certain occasions it will adversely result in
decreasing the performance of employees and affects the success of the company. Thus, the clear
assessment of the advantages and the assessing of authenticity can be very difficult.
2.4 Factors influencing Innovation
There are diverse factors which are influential in promoting innovations (Dahnil, 2014). These
factors are discussed below:
Leadership: According to HUANG and CHEN (2010), leadership is a key factor in determining
creativity and innovation in commercial organisations. Typically, leadership style is perceived to
be a significant individual feature that effects innovation. Lee et al. (2012) mentioned that firms
requiring innovation want an effective imagination and excellent communication capabilities in
their leadership. When leadership is effective and strong, organisational looks to always lead to
the innovation dimension as well.
Research and Development: Research and Development play a significant role in the innovation
process. It is specifically investment in future capabilities and technology, which is transformed
into new processes, products and services (Edquist, 2010).
Organisational culture
As per the observation of Valle et al. (2010), organisational culture plays a crucially affects the
individual as well as organisational process and outcomes. Moreover, innovative organisations
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may have the same cultures. As per the observation of Ozgen et al. (2014), organisational culture
encourages experimentation. In addition, organisational cultures accept mistakes and are ready to
reward successes as well as failures. Valle et al. (2010) point out that, in the marketplace,
employers are encouraged moreover rewarded for experimenting with new products.
Resources: As per the observation of Kaya et al. (2013), human resource management can
improve the motivation and commitment of employees which positively reflects on innovation.
In addition, if firms need to improve their level of innovation, they must recognise the value of
their employees.
Organisational structure: As per the observation of Cosh et al. (2012), organisational structure
is the key factor in the process of innovation. For successful resource and latest technology
utilisation, the organisations need to innovate a pre-condition structure. Moreover, Effective
decision and organisational structure can provide significant success to innovation.
Other factors that are affecting innovation are Integration of all employees, Collaboration and
alliances.
2.5 Role of leadership in promoting innovation
As studied by Neumeier et al. (2017), leadership has a strong effect on promoting innovation. An
effective leader must motivate, encourage and inspire the workforce to be more innovative and
creative. Promoting new ideas and innovation should be on every leader’s scorecards. Most of
the workforce should be motivated to look at their daily activities through an innovative lens, and
they should be rewarded and acknowledged for new innovative ideas (Lee et al., 2012). HUANG
and CHEN (2010) opine that innovation is starting with those individuals who touch the trade
across department and functional areas.
In most of the organisations, the workforces follow the diverse phases and strategies of their
leaders if their leader is creative and innovative then they will try to be also creative and
innovative, and if their leader is indolent, then they will also be indolent (Buabeng-Andoh,
2012). In the case of Apple and Google, it was evidenced that the firm would not be innovative
and successful without strong and effective organisational culture (García-Morales et al., 2012).
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According to Kissi et al. (2013), leaders who need innovation are maniacal about comprehending
the consumers, and their preferences, sensitive and desires.
As studied by Lundvall et al. (2009), innovation is the fundamental factor to the growth and
competitive benefits, and effective leader knows that innovation must come from various
sources, both externally and internally. Further, the leader should also identify that dialogue is a
fundamental factor to innovation, and they would be cultivating, encouraging and role modelling
shared thinking (Černe et al., 2013). A good leader is creative visionaries who have broad ideas,
and significantly, can encourage people around them to turn those ideas into reality (Aarons and
Sommerfeld, 2012). As noted by Ryan and Tipu (2013), leaders who value innovation and
progress gives the workforce the time, space and opportunities to ideate and dream. Moreover,
they also make a reward system, whether it is verbal or financial, for identifying the innovative
opportunities and building ideas to tackle them.
As studied by Donate et al. (2015), the innovative leader wants to be capable to communicate
with their workforce about their vision and make enthusiasm for it. They also encourage the co-
creation of innovation and challenge their workforce to look outside their firm, and outside the
firm and sector for innovative ideas that they have worked elsewhere. Jansen et al. (2009)
mentioned that leadership deliberates a leadership style that aids to capitalise and stimulate
workforce creative potential. It was evidenced that the fundamental purpose of the management
leadership style is to improve an organisation’s capabilities to innovate and to allow trade
innovations.
2.6 Link between previous studies and current studies
Though there are various research studies on leadership and significance, the inadequacy is
marked in the case of technological and electronic companies. Hoch (2013) conducted a study on
innovation and shared leadership. The purpose of the Hoch (2013) study was to analyse the
relationship between shared relationships, innovative behaviour and collective within team
leadership, along with antecedents of shared leadership in terms of vertical transformational
leadership, team composition and empowering leadership. Further, various types’ leadership
theories, remarkably transformational leadership positively affects the organisation's innovation
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as studied by Gumusluoğlu and Ilsev (2009). However, the previous research studies have not
deliberated which exact factors affect innovation in an organisation. Based on this context, the
current research aims to analyses the role of leadership in promoting innovation by focusing
more on the case of Microsoft under SatyaNadella.
2.7 Conceptual framework
Figure 2.1: Conceptual Framework
Source: Created by the author
From reviewing the previous literature studies, the relationship between innovation and
leadership has been clearly conceptualised, as shown in the above figure. It was evidenced that,
the innovation is improved by offering effective leadership, research and development,
resources, organisational culture and organisational structure. Nevertheless, all the factors do not
offer equal effects on innovation as comprehend from previous research studies. Thus, the
present research study will analyse the role of leadership in promoting innovation by focusing
more on the case study of Microsoft under SatyaNadella.
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2.8 Summary
The current chapter critically explained the relevant variables like innovation and leadership and
also discussed the impact of leadership on promoting innovation in the electronic industry. In
addition to that conceptual framework specified in the current chapter provided the information
of significant variables and also stated the relation existing among them.
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Chapter 3: Research Methodology
3.1 Research philosophy
Research philosophy is necessary for developing research because relevant data related to the
research topic is collected, evaluated and utilised based on research philosophy. Researchers
mainly utilise interpretivism philosophy and positivism philosophy while developing research
studies. Interpretivism philosophy is utilised for those research studies in which research adopts a
particular role while analysing the phenomenon. Alharahsheh and Pius (2020) pointed out that
adoption of interpretivism philosophy can create bias and mainly includes personal values and
viewpoints which cannot be generalised and hence is not suitable for this study.
In contrast, Bonell et al. (2018) opined that positivism philosophy is more suitable for those
studies that use quantitative data and has a well-defined structure. Moreover, positivism
philosophy helps in acquiring experience of the phenomenon and its relations. Henceforth,
positivism philosophy is more valid for the study on the role of leadership in promoting
innovations. Thus the researcher has utilised positivism philosophy for conducting this research
study.
3.2 Research approach
Research approaches are mainly used for planning a step by step procedure for collecting
relevant information, analysing and interpreting data for addressing the nature of the research
problem. This research study is developed to analyse the role of leadership in promoting
innovations. For this study, a proper plan and procedure are necessary for collecting, analysing
and interpreting data. Therefore, the researcher has adopted the deductive approach for this
study. Marei et al. (2017) posited that the deductive approach helps in analysing the phenomenon
in a structured and objective manner. At the same time, the inductive approach was not adopted
for this study because it is flexible and incorrect observations can result in incorrect conclusions
(Liu, 2016). Henceforth, the most reliable research approach for this study is the deductive
approach because it helped in explaining the relationship between variables and concepts
quantitatively (Antwi and Hamza, 2015).
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3.3 Research design
The adoption of appropriate research design for the study will help in reducing time and helps in
systematically developing the study. Alongside, helps in documenting different activities
performed while the research study is executed. The researcher has utilised a descriptive research
design for developing this research study because the study includes case study strategy and
deductive approach. Malhotra and Dash (2016) stated that descriptive research design would
help in investigating variables of the study by using different qualitative and quantitative
techniques. At the same time, more relevant and quality researches can be developed by using
descriptive research design (Atmowardoyo, 2018). Hence, the researcher has selected descriptive
research design for this study on the role of leadership in promoting innovations.
3.4 Research strategy
The research strategy is adopted for planning how the research will be performed for addressing
the proposed research questions. Mainly researchers utilise, survey, interview or case study for
developing research studies. This study has utilised positivism philosophy, deductive approach
and descriptive analysis and thus the most appropriate strategy for this study is case study
research strategy. Alongside, Palinkas et al. (2015) explained that interview strategy is adopted
while analysing qualitative data while this study is developed based on quantitative data.
Likewise, survey strategies in cases produces inaccurate and honest information and are more
suitable for high representative and qualitative studies (Creswell and Poth, 2016).
In contrast, case-study strategy is more appropriate for analysing real-life incidents and for
assessing multiple or single case studies (Smith, 2018). This study is developed by analysing the
role of leadership in promoting innovations by examining the case of Microsoft under Satya
Nadella. Henceforth, most suitable and relevant research strategy for performing this study is a
case study strategy rather than opting interview or survey strategy.
3.5 Data collection
An appropriate data collection method is necessary for acquiring relevant data and completing
the research study. Relevant information for developing a research study is necessary for
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enhancing the trustworthiness and relevance of research. Primary data collection methods like
interviews, surveys and experiments are used for collecting qualitative data for research studies
(Rahman, 2017). In contrast, secondary data collection methods like case study are used for
those research studies that deal with quantitative data (Dunn et al., 2015). Alongside, adoption of
secondary data will help in reducing cost and time and helps in collecting unbiased data while
primary sources can produce biased information in certain cases. Therefore, the researcher has
utilised the secondary data collection method for collecting unbiased and accurate information
related to the research study.
3.6 Limitations and challenges
The major limitation of the study was secondary data from certain sources were paid and which
was beyond the budget set of the researcher. Alongside, the researcher faced significant
challenges while dealing with the study because a single leader was taken for conducting the
research. If the researcher could have adopted a comparative study by taking different leadership
style leaders, the relevance and reliability of the study could have increased. Moreover, the
adoption of secondary data alone was also an important challenge faced by the researcher while
developing this research study. Henceforth, the researcher could have focussed on adopting both
secondary and primary data collection methods for increasing reliability and validity.
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Chapter 4: Data Analysis
4.1 Introduction
The data presentation and evaluation regarding Microsoft and Nadella will be made in this
chapter. Besides, the data accumulated would be analysed through the case study method.
Likewise, the summation of the results would be made along with comprehending the pattern
from the data.
4.2 Data Analysis
The impact of Nadella’s leadership on promoting innovations was comprehended through the use
of secondary data, which was acquired from several sources. Besides, internal data sources
included Microsoft website, Microsoft reports and so on. Likewise, external sources included
newspaper clippings, articles, and so on. In addition, the findings would be contrasted against the
points highlighted in the literature review.
4.3 Case study
4.3.1 Importance of leadership in the electronic industry with reference to case of Microsoft
Leadership is an effective tool utilised by organisations for managing different actions and
activities for attaining targeted goals and objectives. At the same time, leadership is an important
element for organisations for achieving success and motivating employees for showcasing better
performance (Donate and de Pablo, 2015). It is observed from the case of Microsoft that Satya
Nadella followed positive leadership and believed that the only way to flourish the working
culture of Microsoft it is necessary to adopt positive leadership (Dhillon and Gupta, 2015). The
adoption of positive leadership will help in motivating, inspiring and attaining the trust of
employees for achieving success. Alongside, Birasnav and Bienstock (2019) pointed out that
adoption of leadership helps in motivating employees for showcasing high-level performance
through developing strong employee relations. Alongside, Leithwood (2019) opined that while
selecting an appropriate leadership style in electronic industry various characteristics of
leadership like active listening, effective feedback, creativity, positivity, empathy, patience, and
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reliability have to be considered. Moreover, leadership is an essential factor for success of any
business organisations and hence, leadership is important in the development and success of the
electronic industry.
4.3.2 Factors influencing innovation in the electronic industry: the case of Microsoft
Microsoft CEO Nadella’s approach towards innovation is highly associated with technological
integration, where the increased investment for R&D is made by most of the companies in the
electronic industry. Microsoft has provided high importance to R&D investment, where the
company invested $19.3 billion, which is comparatively 23.84 million higher than 2019 (Liu,
2020). On the other hand, while considering the overall companies in this industry, the high
incitements by tech companies indicate improved growth (Stephens, 2017).
Figure 4.3.1: R&D investment by companies in the electronic industries
Source: Stephens (2017)
The futuristic view of Nadella has assisted the company is changing its existing organisational
culture Microsoft had, where the change from its traditional structure was shifted to an
innovative perspective. The strategic transformation of the company’s management initiated
from developing a collaborative cultural development, where a negative review on employees
where collected, through which each issue was resolved through grouping people with similar
skills (Vaz, 2019). The transformational modification Nadella performed in the company
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furthermore assisted in enhancing it’s could service efficiency, which was attained by shifting
the focus on the company’s mobile ambitions (Neiger, 2020).
Thus, the leadership structure of Nadella assisted the company in enhancing its market value
through effective resource management that delivered an estimated revenue of $300 billion and
attained the status of cloud-powerhouse compared to its biggest competitor in cloud technology-
Amazon (business insider, 2020).
On the other hand, the changes integrated by Nadella in re-managing the company structure
through eliminating the internal competition among the employees that reduced the possibility of
higher productivity encouraged the collaborative culture that was channelled for digital
innovation in cloud technology development. The reports of Li (2020) states the integration of
new R&D group to Bing and information platform teams through which the innovative Artificial
Intelligence system was developed. Therefore, accurate transformational leadership can be
delineated from the steps of Satya Nadella through which the company development have been
enormous in the electronic industry.
4.3.3 Leadership effectiveness of Satya Nadella on promoting innovations in Microsoft
As mentioned earlier, the leadership of Satya Nadella as the CEO of Microsoft played an
exceptional role in developing, boosting and triggering the organisational performance to the
next level (Knowledge, 2018). One of the significant factors that impact the leadership quality of
Satya Nadella is the positive, risk-taking and no compromise trait (Mint, 2020). The recent report
of HBR (2019) portrays that Satya Nadella initiated social networking for creating a community
for workers in the organisation using Yammer channel. The community is created to boost
employee performance and creative thinking is the major topic discussed through this channel
(HBR, 2019). The employee intention to think innovatively and creatively will be bolstered
through these community channels created through online platform. India Today (2020) reported
that Microsoft had undertaken work from home option until November 2020 due to pandemic
issue; however, Satya Nadella opinion is against the extension on WFH. The report also makes it
clear that the CEO of Microsoft strictly comment on the work from home stating that the remote
working reduces the social interaction, commitment and energy of workforce (Times of India,
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2020). However, the response of the CEO made the majority of workers panic as they preferred
to commit work from home option due to the higher rate of the global pandemic outbreak (Times
of India, 2020).
According to Banchariya (2020), Microsoft CEO has given prior importance for learning
advanced technologies and also to make their workers updated with new solutions in the market.
Tech-led learning was appraised as the foundation for successfully creating new products and
solutions in the market. On the other hand, HBR (2019) Daily Pulse is a method which is
implemented in the firm for understanding the perspectives of employees on the organisation.
The employees can mention any grievances and concerns which they are facing in the
organisation. Satya Nadella, CEO of Microsoft, believes that proper culture for employees
should be designed to bolster their creativity level (HBR, 2019). Knowledge (2018) reported that
Satya Nadella is a fast decision-maker which is the major factor that helped in creating better
innovations in the firm.
Satya Nadella has understood the significance of relying on the innovation to uplift the
organisational performance and also the concept of “learn-it-all” was initiated after Nadella took
charge of the company (Knowledge, 2018). Knowledge learning and enhancing concept is key to
the innovation culture of the firm (Knowledge, 2018). The attitude of Nadella is also a
significant aspect which helps in delve into innovations for business development. Nadella also
initiated many innovative programs with some of the entrepreneurs in India to come up into the
frontline for innovative business development (INC, 2020). The leadership trait and efficiency of
Satya Nadella are deemed to be efficient and effective for the productive and innovative
development of Microsoft. Based on the study of CNBC (2020), Satya Nadella has supported the
work-life harmony concept, unlike other CEO of Microsoft. Therefore, the leadership of Satya
Nadella is highly efficient for improving the business performance of the firm through the
innovation platform. The leadership trait of Satya Nadella is highly effective for building
innovations in the firm.
4.4 Case study analysis
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The critical evaluation of the different factors that have a significant impact on the innovative
factors in the electronic industry considering the case of Microsoft indicates the high integrity
towards R&D management where Microsoft have considered a high priority under Nadella. The
literature has pointed out the importance of R&D that emphasise on new process and services,
which in the case of Microsoft was the cloud computing facilitates and capabilities for
simultaneously managing mobile and other services (Edquist, 2010). On the other hand, the
reports of Ozgen et al. (2014) have emphasised on the acceptance of mistakes by the employees,
which is essential for managing organisational culture. However, in the case of Microsoft, the
entire cultural change was aided with transformational leadership through which the employee
management system that aided in grouping people for effective benefits was achieved. Therefore,
this contradiction can be stated as one of the efficiencies Satya Nadella had in his leadership and
innovative integration capabilities.
Employee value recognition is stated as an important major resource in the studies of Kaya et al.
(2013), through which the effective management of positivity reflection on employees’
capability is stated to be productive for innovation. However, at Microsoft, employee negatives
were emphasised and listed through which their drawbacks was focused on rectifying internal
issues of the competitive environment in the company.
The case study of Donate and de Pablo (2015) pointed out that innovativeness of Microsoft could
be seen in their leadership efficacy. The leadership goals are important for bringing innovations
and technological accomplishments into the firm. The case study indicates that Satya Nadella is
having a positive attitude towards the need for innovative development in the workplace and
hence, the working culture was remodified to fit the needs to employees to think innovatively
(Dhillon and Gupta, 2015). Based on the study of Rosenbach (2018), it is clear that the
favourable organisational culture is a significant booster that uplifts the innovations in the firm.
Besides, the case study of Birasnav and Bienstock (2019) pinpointed out that adoption of
leadership style will be beneficial for improving the adherence of the employees towards
innovations in the firm. The case study reveals the significance of leadership efficacy in building
productive innovations. Woo (2019) in literature, noted that leadership decision-making skills,
efficiency are some of the key factors that help in enhancing the innovation of the firm. The
24

inferences make it clear that innovation is a key parameter which is influenced by the capabilities
and potential of leaders.
The literature review shows that the progress of employees is also related to employee
motivation in the organisation (Northouse, 2019). Employee motivation is the major factor that
leverages the productivity of the firm by enhancing the innovation of employees. The no
compromising nature of Satya Nadella would inspire and motivate the performance of the
employees, which contributes to the higher level of innovations in the workplace (HBR, 2019).
In addition to this, the Daily Pulse review, which provides space for employees to provide their
concerns and opinion on the workplace helps to share any issues which they encounter for
presenting the innovative idea. In the literature review, Leithwood (2019) noted that feedback
collecting nature is one of the significant factors that improve the quality of leadership in an
organisation. The case study also portrays that Satya Nadella is highly concerned with the
response and feedback of workers for enhancing and improving the organisational culture for
making it suitable for the workforce. The report of CNBC (2020) also shows that work-life
harmony should also be provided for employees for developing their attitude towards
innovations. Besides, as a leader, Satya Nadella is showing high interest to move forward and
search for new and potential ground in the market.
4.5 Judgement of findings
The case study pointed out that leadership insignificant for the development of organisations
trading under the electronic industry. In addition to this, the nature of considering feedback,
nature of creating a positive environment and confidence are some of the major dimensions that
elevates the performance of the leaders in an organisation. Besides, Satya Nadella, CEO of
Microsoft, also possess such traits which are highly significant for blooming the business
performance (Dhillon and Gupta, 2015). In addition to this, the literature review also portrays
that leadership is significant for the exceptional performance of the firm, especially for
nourishing the business through innovative pathways (Neumeier et al., 2017).
The conceptual framework has drawn insight into the major factors that stimulates the leadership
efficiency for innovative development in the workplace. The conceptual framework has
25

highlighted the significance of research and development for improving the business
performance of the firm by adhering to innovative development (Edquist, 2010). While
examining the case of Microsoft, the company has provided an extensive platform for innovative
development by enhancing R&D.
While examining the case of Microsoft, the company has designed a Yammer channel for
ensuring the connectivity of all employees with the organisation, which helps in improving their
capabilities for innovations. Huang and Chen (2010) pointed out that the connection of
departments should be ensured by the leaders for innovative development. The conceptual
framework shows the connection between leadership efficacy for improving innovations in
business practises. Besides, Rowold (2014) noted that the culture of the organisation also
contributes to leadership efficiency for innovative business development. In the case of
Microsoft, a positive environment was created for leveraging the innovation amid their
employees.
26

Chapter 5: Conclusion and Recommendation
5.1 Conclusion
The primary objective of the study is to examine the significance of leadership in the electronic
industry. The study of Donate and de Pablo (2015) pointed on the leadership quality of
motivating employees for innovative development. The case study also indicated that Leithwood
(2019) should also be capable of apt leadership style, which will be suitable for the electronic
industry. The literature review similarly pointed out that leadership is highly necessary to
improve the innovations in cutting-edge technological sectors such as electronic industry.
Therefore, it is clear that leadership skills are highly significant for the performance excellence
of the firm by adhering to innovative development.
The second objective of the firm is to explore the dimensions that impact innovation in the
electronic industry. While examining the case study, it is clear that R&D investment of Microsoft
is very high. Besides, the organisational culture is designed for accomplishing the objectives of
the firm. The organisational culture and higher research and development positively impact the
leadership for enhancing innovations in business. Therefore, the second objective of the major
dimensions that contributes to the innovation in business was studied.
The third objective of the current research was to understand the role of leadership in promoting
innovations in Microsoft. The case study revealed that the Satya Nadella, CEO of Microsoft had
given high priority for the employee development for creating better innovative business. In
addition to this, Satya Nadella has deemed activities such as Daily Pulse for checking the interest
of employees of the organisation (Times of India, 2020). The employee’s development was
emphasised by adhering to “Tech-led learning and learn-it-all” principles. Besides, Nadella
always looks for a better partnership that drives innovations into the firm. Thus, it is clear that
Satya Nadella’s leadership is a significant factor that helped in the innovative development of the
firm.
5.2 Recommendations
27

 Employee grievances and their considerations for enhancing innovative productivity
Microsoft, under the leadership of Satya Nadella, provides high priority for company standards,
while employees are trained for following the established imports. While such an approach
indicates accurate productivity advantages for organisations in the electronic industry, the
operational efficiencies can be anticipated to have an adverse impact on the company. Better
priority for employee grievances is an effective option for reducing the impact on the employees
through which the internal issues and management adversities can be reduced. Financial and
work environmental suitability can be effectively used for enhancing the innovative structure of
the company.
While considering the case of Microsoft, the company CEO have indicated their reduced interest
in employee privileges such as work from homes option in the name of reduces productivity.
However, if the employees are not accurately managed, considering their situations, the impact
on innovation development will critically affect the overall productivity. This factor is applicable
for industry standards, where innovation enhancement is the main priority.
 Employee training for emphasising work-life harmony for innovation
Work-life balance is one of the most discussed topics in the electronic industry, through which
precise employee management is structured for innovative advantages. However, while
identifying the case of Microsoft, the CEO prefers harmony instead of balance among the work
and personal life. However, such a concept can be unacceptable for some employees, preferably
for women that have families. The importance of leadership accuracy is one of the main facts
that can be used for situations that demand employee management for higher potential.
Therefore, through integrating effective employee training practises and guidance for employees
that will assist them in integrating work-life harmony in their life, a constant innovative
development can be anticipated in the electronic industry.
Both the recommendations have been presented with the foundation of results identified through
the critical evaluation of Microsoft’s case. The effectiveness of these recommendations can be,
however, integrated into organisations in the electronic industry that targets innovative
development as their core preference in competitive strategy.
28

5.3 Recommendation for future research
The possibility of research development in the current subject is vast and multi-dimensional
considering company management, future development and risk management. Therefore, the
importance of accurate data collection is a significant factor that has to be considered for
developing a critical research outcome. In this context, the important factor that can be
recommended for the future development of the current research is the inclusion of primary data
collection strategies, through which authentic and more realistic information on the electronic
industry can be attained. Inclusion of survey or Interview strategy will be assistive for
developing a comprehensive research outcome that is more reliable compared to case study
analysis.
29

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