Impact of Leadership on Innovation

This assignment investigates how leadership influences innovation within companies. It utilizes a questionnaire to gauge employee perceptions on leadership's role in encouraging innovation, providing feedback, and fostering a creative work environment. Students analyze the responses to understand the impact of different leadership styles on organizational innovation.

RESEARCH PROJECT

Table of Contents
CHAPTER 1 INTRODUCTION.....................................................................................................1
1.1 Background...........................................................................................................................1
1.2 Rationale...............................................................................................................................1
1.3 Aims and objectives..............................................................................................................2
1.4 Research questions................................................................................................................2
CHAPTER 2 LITERATURE REVIEW..........................................................................................3
2.1 Concept of Leadership and innovation.................................................................................3
2.2 Importance of leader in innovation process..........................................................................3
2.3 Functions of leader in Aston Martin.....................................................................................4
CHAPTER 3 RESEARCH METHODOLOGY..............................................................................5
3.1 Research philosophy.............................................................................................................5
3.2 Research approach................................................................................................................5
3.3 Data collection......................................................................................................................5
3.4 Data analysis.........................................................................................................................6
3.5 Sampling...............................................................................................................................6
3.6 Ethical consideration.............................................................................................................6
3.7 Limitations............................................................................................................................6
CHAPTER 4 DATA ANALYSIS...................................................................................................7
4.1 Data analysis- Questionnaire.................................................................................................7
CHAPTER 5 CONCLUSION AND RECOMMENDATIONS....................................................12
5.1 Conclusion...........................................................................................................................12
5.2 Recommendations...............................................................................................................12
REFERENCES..............................................................................................................................13
APPENDICES...............................................................................................................................14

CHAPTER 1 INTRODUCTION
1.1 Background
The leadership is an important skill which is required in every field of organisation.
Through efficient leadership, a firm can manage diversities and keep all the activities of a
company in right direction. In present time, the role of leadership has taken a new form
according to which they have lot more responsibilities towards the organisation which makes
their role in any company significant. In modern era, it is very essential for organisations to
adopt the innovation concept with an increased focus so that they can make their company
successful in market (Capozzi, 2010). For this, it is necessary for the firm to be able to cope with
changes occurring in market on frequent basis. The continuous monitoring of market and taking
quick decisions for adapting various changes, it is vital for company to be lead by a skilled and
efficient leader who can lead and manage the change in effectual way. Through innovation, an
enterprise can easily move on the track of success. Here the role of a leader is to be ready and
make its prepared for operating in a challenging and unpredictable situations. Besides this, it is
necessary to be ready for taking different risks in business so that possibilities of success can be
increased (Makri and Scandura, 2010).
The present research project is based on making an investigation on role of a leader in
managing innovation within business. For this purpose, Aston Martin which is an auto mobile
company of Britain has been taken for furt6her discussion. This organisation firmly believes on
continuous innovations which is the key of getting success in market. The leadership and
innovation in the said company helped it in making its place in market among leading auto
mobile companies. In present report the leadership and innovation will be studied in deeper way
to make a sense of both in any firm.
1.2 Rationale
The present topic of leadership and innovation is a most contemporary topic which needs
to be studied in a detailed manner (Porter-O'Grady and Malloch, 2011). Every company is in
search of a leader who can manage the organisation in a best way along with making innovations
to keep its position at top in market. By conducting a research on this topic will help in
understanding the relation between both and its necessity in the present time. The research will
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also help in getting a detailed insight of leadership effectiveness in company so that research
aspirants and scholars can also use this approach for study purpose.
1.3 Aims and objectives
'To analyse the role of leadership in managing innovation: A case study of Aston Martin, UK.'
Objectives
 To understand the concept of leadership and innovation.
 To analyse the importance of leader in inducing innovation
 To investigate various functions leader perform for innovation in Aston Martin
 To recommend the ways through which effectiveness of leadership in nnovation can be
enhanced.
1.4 Research questions
 What is leadership and innovation?
 What is the importance of leadership in inducing innovation?
 What functions are performed by a leader for innovations in Aston Martin?
 What are the ways through which effectiveness of leadership in innovation can be
encouraged?
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CHAPTER 2 LITERATURE REVIEW
2.1 Concept of Leadership and innovation
The creativity and innovation can be understood as the potential of anything to do a work
in a different manner. This refers to applying a new tool or method for performing any task
which is a major driver of organisation's success in present era. The leadership on other hand is a
skill which helps in leading a team or group of persons in an effective manner so that a teamwork
can be achieved. According to Hoch, (2013), combination of the effective role of a leader and an
innovative organisation can be a best match which can aid in producing the results in most
profitable way. The leader plays an important role in managing innovativeness of company in a
right direction. In modern era, it is clear that for a successful survival of the business, it is
essential to be creative and innovative in performance. This is why, nowadays, the leaders like to
form a team of employees who are quite creative and innovative. The firms are planning various
strategies which can help in fostering the innovativeness among their workers. The products and
services are also presented in a creative and differential manner so that maximum profit can be
attained. This is also a key for making a brand successful in market which helps in getting more
profitability and more recognisable among customers (Porter-O'Grady and Malloch, 2010). In
this objective, a leader also plays an important role by managing its team in appropriate way and
giving them required guidance so that all of them can utilise their skills in a best possible way.
2.2 Importance of leader in innovation process
In any organisation, there are lot of things which are crucial to achieve overall success of
business like proper organisational structure, efficient and latest technologies, a right culture and
similar other tools of management. In the views of Bledow, Frese and Mueller, (2011). 21st
century is based on making innovations and bring creativity among customers to get maximum
success. In this regard it is a fact that this innovation and creativity is not a thing which comes
spontaneously. There is a need of a leader who can drive the changes and foster the creativity
within organization. They play an important role in changing various common things of a
business into creative ones so that an enterprise can attain competitive advantage over rival
firms. The leaders are responsible to bring effectiveness in the company which can lead to the
path of success. They implement various strategies and aspects that can help in making their
organisation competitive and innovative. For this purpose, the leader use to encourage their team
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members and guide them in entire process. According to Jean-Marie and Normore, (2010), it is
vital for a firm to put a greatly skilled leader at a right place so that innovativeness of an
organisation can be managed. As per this need, it is necessary to apply a right leadership model
at the workplace so that the leaders can have enough power and authority to develop a strategy
that can support innovation and drive encouragement among workers for creativity. It has been
discovered that in many instances, the organisations fail to develop the innovative aspects
because of lack of leadership with creativity.
2.3 Functions of leader in Aston Martin
The leadership is a skill which is not possessed by everyone. It is a potential which helps
in getting all the work done in an effective manner along with management of a team spirit
(Michaelis, Stegmaier and Sonntag, 2010). It is necessary for a company to apply a right
leadership approach to gain benefits of innovation. As per this fact, the most suitable leadership
that can fully support the concept of creativity is collaborative leadership. The stated firm of
Aston Martin is also in favour of such leadership approaches who aids in leveraging the
innovation and creativity in the firm so as to develop the company in market. The organisation is
continuously making innovations in sports car with development of those features which can
match the needs of current generation. As a result, it has developed its place in market as a leader
in sports car that gives all those features which are innovative and also attractive. The
collaborative approach of a leader in this firm gives enough space to all its employees for making
their decisions on their own and share their ideas with the leader so as to gain right guidance
(Davis and Eisenhardt, 2011). The leaders have an open communication with teams so that all of
them can share their thoughts and creative ideas which can help in making development. Besides
this, leaders give encouragement to the ideas and foster more creativity by giving appreciation
and rewards for giving useful ideas. Because of all these support and efforts, the company has
become successful in launching its various innovative versions of car in modern times.
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CHAPTER 3 RESEARCH METHODOLOGY
3.1 Research philosophy
The research philosophy refers to the ideas and basic assumptions that are followed in
any research process. This assumption act as a foundation on which entire research is advanced.
This philosophy is of two types Positivism and Interpretivism where positivism is based on
making research through quantifiable terms so that any assumption can be proved on the logical
base. It does not follow any moral decisions but the rational decisions (Forzano, 2011). On other
hand the interpretivism is based on making a study on qualitative basis to make an inquiry over
basic assumptions. For this purpose, the human interest in study is integrated to get the results in
logical ways. In present study, Interpretivism approach is followed for accomplishing the aims
and objectives of study. This will help in taking assumptions for study and proving them on a
logical base.
3.2 Research approach
The research approach is a way which is undertaken by the researcher in conducted for
completing the study. This approach is followed for keeping it as a guideline to design the shape
of research. There are two approaches of research which are Inductive and Deductive (Goddard
and Melville, 2004). The Inductive approach of study is based on adopting a study method in
which the data is collected and a new theory is generated after its analysis. While in deductive
approach, it attempts to make a study over already established theory so that a result can be
matched with it by testifying. The present study is based on deductive approach according to
which the relation between leadership and innovation is studied and proved.
3.3 Data collection
The data collection is a procedure through which the researcher make efforts to collects
the raw data and convert it into a understandable manner. For this purpose, two approaches are
there primary data collection and secondary data collection (Jackson, 2010). As per the primary
data collection, the researcher himself collects the data through questionnaire, focussed groups,
surveys or observations. While in secondary data collection, books, journals, online sources and
previous articles are referred. In the current study, both methods have been applied for collection
of data.
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3.4 Data analysis
The collected data is analysed through various tools and techniques so that a meaningful
result can be generated. This can be done through either qualitative or quantitative method of
analysis (Johnson and Christensen, 2008). In qualitative analysis, data is analysed through
thematic assessment while in quantitative one, the statistical tool of SPSS is implemented. In the
present analysis, data has been analysed through qualitative method according to which thematic
analysis is done.
3.5 Sampling
The sampling is an important step where the researcher makes a large size of population
into small one so that a study can be executed in easy manner (Forzano, 2011). In present
research the sampling has been done on the basis of purposive sampling where 10 managers of
Aston Martin have been contacted for filling the questionnaire.
3.6 Ethical consideration
The research is necessary to be undertaken as per the ethical consideration according to
which the data must be collected with a complete consent of respondents (Goddard and Melville,
2004). Besides this, in current study, it has been kept in consideration that all collected data is
kept in confidential manner. Moreover, all the data collected is based on reliable sources.
3.7 Limitations
To face various limitations in the research study is quite common. In current research
process, the major limitations was faced in contacting the managers of mentioned organisation
(Jackson, 2010). As a result, it has affected the study to some extent. While another limitation is
faced in time constraint because of which the adequate number of respondents have not been
considered.
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CHAPTER 4 DATA ANALYSIS
4.1 Data analysis- Questionnaire
Theme1: Leadership has an important role in encouraging the innovation in company.
1) Do you think that leadership has an important role in encouraging the
innovation in company? Frequency Percentage
Definitely 5 50
Rarely 3 30
Definitely not 2 20
Definitely Rarely Definitely not
0
5
10
15
20
25
30
35
40
45
50
Do you think that leadership has an important role in encouraging the innovation in company?
Percentage
Findings and analysis: The above theme shows the responses of managers at Aston martin
according to which it is clear that they are agree about role of leadership in the innovation at
company. The responses show that 50% of managers agree that there is an important role of
leadership in innovation. About 30% of them have said that the role of leaders is only sometimes
helpful in innovation practice. While as per the responses, 20% of managers completely disagree
about the role of leadership in innovations.
Theme 2: Employees give their ideas and suggestions based on innovative measures.
2) In your organization, employees give their ideas and suggestions based
on innovative measures? Frequency Percentage
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Yes 4 40
No 2 20
Sometimes 4 40
Yes
No
Sometimes
0 5 10 15 20 25 30 35 40
In your organization, employees give their ideas and suggestions based on innovative measures?
Percentage
Findings and analysis: As per the responses, it is clear that 40% of managers are agree that the
employees take active participation in giving their ideas and suggestions to the company so that
it can be used for better innovation practices. While, 40% of managers have agreed that workers
take part in this suggestion giving only for sometimes. About 20% of managers have told that
they do not find any worker's participation in giving any useful idea for making innovation in
organisation.
Theme 3: Encouraging employees for giving creative ideas help the company in making
innovation in products.
3) Do you think that encouraging employees for giving creative ideas help
the company in making innovation in products? Frequency Percentage
Strongly agree 3 30
Agree 3 30
Neutral 2 20
Disagree 1 10
Strongly disagree 1 10
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30
30
20
10
10
Do you think that encouraging employees for giving creative ideas help the company in making innovation in products?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Findings and analysis: The above theme has presented the responses of managers according to
which about 6% of managers agree that by encouraging the workers for giving creative ideas in
the company, they have been proved useful in making innovative products. About 20% managers
in this notion are neutral while 20% of them are completely disagree about it and does not
consider any useful role of workers in giving ideas that can help in making innovation in
products.
Theme 4: Handling various issues and giving solutions is the major function of leadership in
driving innovation at a wider level.
4) What is the major function of leadership in driving innovation at a wider
level? Frequency Percentage
Providing guidance 3 30
Creating an innovative work environment 2 20
Handling various issues and giving solutions 4 40
Decentralizing the decision making power 1 10
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Providing guidance
Creating an innovative work environment
Handling various issues and giving solutions
Decentralizing the decision making power
0 5 10 15 20 25 30 35 40
30
20
40
10
What is the major function of leadership in driving innovation at a wider level?
Percentage
Findings and analysis: The above theme has represented that about 40% managers are in favour
of handling issues of employees and giving them solutions is the most helpful function of
leadership in driving innovation. While on other hand, about 30% of managers have agreed that
providing guidance in work is a better way. Similarly, 10% managers find decentralisation of
power and authority for decision making a better way to drive innovation. While 20% managers
agree that by creating the innovative environment at workplace, firm can drive innovation in
company.
Theme 5: efficient leadership has proved to be of profitable for Aston Martin.
5) Does the efficient leadership has proved to be of profitable for your
firm? Frequency Percentage
Yes 6 60
No 2 20
Can't say 2 20
10

Yes
No
Can't say
0 10 20 30 40 50 60
60
20
20
Does the efficient leadership has proved to be of profitable for your firm?
Percentage
Findings and analysis: The above theme has discussed about the role of leadership in getting
success through innovative practices. As per this, about 60% managers have agreed that through
efficient leadership the company has applied good innovative practices and gained profitability.
About 20% managers have agreed that they cannot say anything surely while 20% of managers
out of 10, have told that there is no role of leadership in getting the profitability by firm.
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CHAPTER 5 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
The present research has been conducted on analysing the role of leader in the innovation
application in the business. As per the research, the chosen company is Aston Martin according
to which it has been assessed that how company employs leadership style to gain innovativeness
in its different functions. The leader plays an important role in managing innovativeness of
company in a right direction. In modern era, it is clear that for a successful survival of the
business, it is essential to be creative and innovative in performance. The stated firm of Aston
Martin is also in favour of such leadership approaches who aids in leveraging the innovation and
creativity in the firm so as to develop the company in market. For this, it is necessary for the
firm to be able to cope with changes occurring in market on frequent basis. It has been
articulated that with the efficient leadership the firms can effectively manage the innovation
practices in their functions.
5.2 Recommendations
The above research and study has articulated the important role of leadership in
enhancing creativity. While there are some recommendations which must be adopted. It is
necessary to develop the adoption of shared and collaborative type of leadership so that the firms
can get better advantage of innovation. Besides this, employees will also feel encouraged and
motivated to give their cooperation in giving ideas and suggestions. Moreover, the leaders must
create an environment which can foster creativity among workers.
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REFERENCES
Journals and Books
Bledow, R., Frese, M. and Mueller, V., 2011. Ambidextrous leadership for innovation: The
influence of culture. In Advances in global leadership (pp. 41-69). Emerald Group
Publishing Limited.
Capozzi, M.M., 2010. Leadership and innovation. Development Outreach.12(1). pp. 25-28.
Davis, J.P. and Eisenhardt, K.M., 2011. Rotating leadership and collaborative innovation:
Recombination processes in symbiotic relationships.Administrative Science Quarterly.
56(2).
Forzano, L.B., 2011. Research Methods for the Behavioral Sciences. Cengage Learning. p. 158.
Goddard, W. and Melville, S., 2004. Research Methodology: An Introduction. Juta and Company
Ltd.
Hoch, J.E., 2013. Shared leadership and innovation: The role of vertical leadership and employee
integrity. Journal of Business and Psychology. 28(2). pp.159-174.
Jackson, S., 2010. Research Methods: A Modular Approach. USA: Cengage Learning.
Jean-Marie, G. and Normore, A. eds., 2010. Educational leadership preparation: Innovation and
interdisciplinary approaches to the Ed. D. and graduate education. Springer.
Johnson, B. and Christensen, L., 2008. Educational research: Quantitative, qualitative, and
mixed approaches. Thousand Oaks, CA: Sage Publications.
Makri, M. and Scandura, T.A., 2010. Exploring the effects of creative CEO leadership on
innovation in high-technology firms. The Leadership Quarterly. 21(1). pp.75-88.
Michaelis, B., Stegmaier, R. and Sonntag, K., 2010. Shedding light on followers' innovation
implementation behavior: The role of transformational leadership, commitment to change,
and climate for initiative. Journal of Managerial Psychology. 25(4). pp. 408-429.
Porter-O'Grady, T. and Malloch, K., 2010. Innovation leadership: creating the landscape of
healthcare. Jones & Bartlett Learning.
Porter-O'Grady, T. and Malloch, K., 2011. Quantum leadership: Advancing innovation,
transforming health care. Burlington, MA: Jones & Bartlett Learning.

APPENDICES
Questionnaire
Name
Age
Designation
1) Do you think that leadership has an important role in encouraging the innovation in
company?
 Definitely
 Rarely
 Definitely not
2) In your organization, employees give their ideas and suggestions based on innovative
measures?
 Yes
 No
 Sometimes
3) Do you think that encouraging employees for giving creative ideas help the company in
making innovation in products?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
4) What is the major function of leadership in driving innovation at a wider level?
 Providing guidance
 Creating an innovative work environment
 Handling various issues and giving solutions
 Decentralizing the decision making power
5) Does the efficient leadership has proved to be of profitable for your firm?
 Yes
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 No
 Can't say
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