We Are Intechopen, The World'S Leading Publisher of Open Access Books Built by Scientists, For Scientists
We Are Intechopen, The World'S Leading Publisher of Open Access Books Built by Scientists, For Scientists
We Are Intechopen, The World'S Leading Publisher of Open Access Books Built by Scientists, For Scientists
6,400
Open access books available
174,000
International authors and editors
190M Downloads
154
Countries delivered to
TOP 1%
most cited scientists
12.2%
Contributors from top 500 universities
Abstract
Since time immemorial, people have steered clear of change because of its
complexity and the need to adapt to completely different mindsets. Any kind of
change is difficult to accept because it demands that people leave behind the ideas
and concepts, they trust and substitute them for something that is new but uncom-
fortable to them. The question then is not about turning up with something novel,
but about persuading people to accept that change. This requires building trust
and collaboration, as no change or innovation would be successful without joint
action or collusion. The present century is one of adventure, excitement, and many
challenges. Financial insecurities, social embarrassments, and a need to jump out of
comfort zones are major factors driving a need for change and have decreased the
adoption time for people. This has major implications on society because now more
than ever, consumers are willing to put a premium on innovation. And innovation is
the starting point for a revolution. Thus, it is essential to understand what exactly is
meant by innovation?
Before moving on further, let us explore what innovative thinking is. One way
it can be defined is as a “potentially powerful influence on organizational perfor-
mance”. More importantly, to introduce innovation within an organization, there
1
Leadership in a Changing World - A Multidimensional Perspective
is a need to look for people who believe in something, who are willing to cooperate,
and who are passionate. Innovation leadership is thus the ability to inspire produc-
tive action in yourself and others during times of creation, invention, uncertainty,
ambiguity, and risk [1]. It is a necessary competency for organizations that hope to
develop truly innovative products and services [2]. Often, innovation is confused
with invention and the generation of new ideas. Like invention is the conception
of a new product, innovation is about making the existing product function bet-
ter. Like they teach you in design strategy classes in MBA, the invention is the first
boat ever pushed out to sea: it may be profound or fill a significant void in history.
However, is it consequential? Can it be easily accessed by people in day-to-day life?
Even though a prodigious new discovery in a lab might be a wonderful invention,
yet if it does not create value in the market, if people do not trust it, it is not an
innovation. Coming up with advanced tech products every year to gain profit is
of no use if its usefulness to society is nil. Innovation is thinking out of the box.
And how do you know if something you created is of use to someone? How do you
stay relevant as an organization? That is where innovation leadership comes into
play. Because as they say, “From the idea to the invention, concept to creation......
Execution is the key”.
Ever wanted to augment your creative potential to tackle the escalating tech-
nological as well as social challenges that we are facing today? Ever wanted to
equip your team or employees to take “leaps of faith “ that would enable them to
overcome these complex obstacles and create a better product for society? That is
what innovative leaders’ practice. Even though innumerable definitions of innova-
tion leadership exist, still one that explains it all is the fact that innovation leaders
help people translate their ideas into reality. Innovation is not just doing something
new for the sake of it, but to add value or solve a problem within an existing system
or organization. George Cuoros defines innovation as a way of thinking to create
new and better things. Innovation can result from either “invention” (all new) or
“repetition” (change of what already exists), but if it does not correspond to the
idea of “new and better”, it is not innovative [3].
The words that come to your mind when you hear about the word “leader-
ship” include mentor, vision, support, manager, ethics, influence, etc. “A leader
is someone who builds their team, mentors them, and then advocates for them,”
[4]. What then is meant by innovation in leadership? Innovation leadership
involves synthesizing different leadership styles in organizations to influence
employees to produce creative ideas, products, services, and solutions. These
innovators who use their creative capacity enough to advance, help us to make big
strides and lead us to a new age of betterment. One of the things that every great
innovator has is that not one of them accepts the status quo. Innovative leaders
cultivate an environment where ideas can be developed, and better yet where
they can blossom. They are visionaries who lead by example and more impor-
tantly foster collaboration, creating a culture of trust and venturousness where
those under them are not afraid of trying out new ideas, as they know the leader
has their back. In his memoir, “The Long Walk to Freedom,” Nelson Mandela
compared the roles of leader and shepherd as follows: “I piloted from behind.”
[5]. Innovation leaders basically commit to making organizations work for the
greater good and innovation leadership takes its inspiration from a vast array of
sources. This chapter will explore the various theories that have dictated innova-
tion leaders over the years, how creativity begets conception of new ideas, look at
case studies to understand strategies that have helped in the evolution of certain
companies, and sum it all up with the best practices that should be promoted to
create innovative leaders.
2
Innovation Leadership in the 21st Century
DOI: http://dx.doi.org/10.5772/intechopen.101932
This theory has been around since 1970 when Martin Evans developed it while
Robert House improved it in 1971. The Path-Goal model emphasizes the importance
of the leader’s ability to interpret followers’ needs accurately and to respond flexibly
to the requirements of a situation [6].
The basic argument that this theory offers is that it is the chief responsibility of
the leader to motivate the followers to conclude their tasks, and the leader does that
by removing any obstacles in their path. To reiterate it, if the followers are moti-
vated enough to attain a sense of fulfillment after they accomplish a task, and if all
the negating factors in their way get cleared, they could take these tasks to comple-
tion. In the most simplistic terms, Path-Goal theory is about “how leaders motivate
their followers to accomplish goals” [7].
Why is it called the Path-Goal Theory? Because it emphasizes the fact that lead-
ers should change their leadership styles to their subordinates or adopt a path based
on the situations, they face to achieve a goal. It is molded on the Expectancy Theory
of Motivation. Breaking it down for the layman, when will your employees or your
team be motivated enough to work towards a task? First, when they believe that
the goals, they have received are attainable (Expectancy). Second, when there is a
promise of a reward (Instrumentality). And third, if that reward holds any value
for them (Valence).
Therefore, in the Path-Goal theory, leaders go about looking for ways to moti-
vate their teams to achieve their objectives, eliminate any roadblocks or ambiguities
in their way and make sure that the fruit these efforts bear is desirable. It is similar
to the way a parent removes obstacles from a child’s path so that he can attain excel-
lence in the best environment possible.
Now, depending on the situation a leader faces and the kind of employee or
teammate he has under him, there are four kinds of behaviors that he may need
to adapt to increase productivity and thus the possibility of innovation within his
organization. It would also improve job satisfaction and performance. According to
(House and Mitchell 1974, p. 83), this approach has focused on “directive, support-
ive, participative, and achievement-oriented leadership behaviors” [8].
3
Leadership in a Changing World - A Multidimensional Perspective
and juggles ideas in a way that each member has an active involvement in the
decision-making process.
• When a team member joins the group and the leader gauges how skilled he is,
the manager is still forming an initial assessment of the team member, just like
in real life when we meet someone new for the first time. This stage is called
Role Taking.
• Based on his assessment of the team, he will divide them into two groups, one
that forms his inner circle i.e., people close to him who proved their loyalty or
trust. And another group is the outer circle, which has not formed as strong
bonds as the inner group. This stage is called Role Making
They based this theory on the assumption that each individual is different and
thus has different communication needs. Or in other words, that every member of
the team is unique and must be treated differently. The findings of a study pub-
lished in the International Journal of Organizational Leadership demonstrated that
there exists a significant and positive relationship between LMX and organizational
change management [13].
4
Innovation Leadership in the 21st Century
DOI: http://dx.doi.org/10.5772/intechopen.101932
A proper understanding of these theories thus helps foster the right environ-
ment for innovation by providing a general direction on necessary leadership
functions.
And innovation climate (top management support, resource supply) mediates
the relationship between transformational leadership and organizational innova-
tion because effective leadership should build a supportive climate for innovation
[14]. Organizational innovation is the implementation of a method that has not
been used before in the organization, it results from the strategic decision that
management has taken [15].
Now that we clearly understand innovation, leadership, and the roots behind
these concepts, let us ponder on the significance of “creativity” for promoting
innovation.
Although almost identical on face value, creativity and innovation hold different
connotations in real life. While every innovation involves creativity, not all forms
of creativity lead to innovation. And understanding the clear distinction between
these ideas helps leaders flourish in their organizations. One of my favorite analo-
gies to make this easier to understand is the invention of pasta. Creativity involves
coming up with an entirely new dish or recipe of the Italian pasta. Whereas innova-
tion is modifying what is already known about pasta to make it more appealing
to the market. Like changing the shape of the pasta, or making it more colorful to
attract children.
It is safe to assume that there is truly a connection between creativity, leader-
ship, and innovation? The use of Apple products has been rampant in the past few
decades, and iPhone has emerged as one of the greatest inventions in recent years,
especially among youth. He was a man who did not accept conventional wisdom
about cell phones that existed and challenged it. He did not respect it and struggled
to work around ways of turning that invention into innovation through his creative
ideas. When thinking about tablets, smartphones, and laptops, it’s almost inevitable
that Apple and its companion Steve Jobs will appear. But instead of seeing Jobs as
the inventor, it’s better to see him differently because Walter Isaacson’s biography
calls him a “tweeker.” [16, 17]. His creative flair led him to go out of his comfort
zone, challenge the existing deficiencies and lead to the creation of a new innova-
tive product.
Rajendra Prasad, who is a common name in the field of fashion and architecture,
believes that the gap between being a fashion symbol and taking the entire fashion
industry by storm lies in the realm of creativity. It lies in the ability of ordinary
people to do extraordinary things and lies in the minds of the out-of-the-box think-
ers who take the first courageous leap into the unknown and bring back something
spectacular. These people are nothing short of leaders, who, through their creative
mindsets, give birth to amazing innovations. In the process of creative entrepre-
neurship, apart from using creativity to build a business, these entrepreneurs also
need to strike a balance between creative ideas, creativity, and entrepreneurship,
which is achieved through the management and leadership behavior of creative
entrepreneurs [18]. A creative leader hears something in one place, hears something
else in another place, and somehow assembles it to come up with an innovation.
That is how creativity, leadership, and innovation gel so well together.
To sum it up, creativity leads to innovation, and innovation gives birth to leader-
ship. There is a basic formula to becoming a leader or starting entrepreneurship. It
is a function of two major things- an initial idea and a willingness and creativity to
5
Leadership in a Changing World - A Multidimensional Perspective
engage in and sell that idea. Also, heroic creativity and leadership feature strongly
in the careers of creative workers, optimizing well-being, satisfaction, and career
coping strategies.
Having come to this point in the discussion, let us rewind to what we started this
discussion with. The notion that it is the people and their cooperation that leads
to the best kinds of innovations. Combine that with a creative mindset and the
right direction, and you get innovative leaders to lead the team forward. Ever then
wondered why some companies or organizations succeed at doing this while others
fail. From research over countless years and by many researchers, it all boils down
to having the right strategy. And not only that but also being able to implement that
strategy.
Many models of promoting innovation leadership in organizations have come
into play in recent times. There are varied opinions regarding the same. Some belief
in implementing an innovation culture by motivating your teammates to seek
advancement. But this wastes resources and is based on a dependence on skillful
people who can leave the team anytime. Another model that some companies use is
of hiring what they call an “inventor” or innovation consultant, who propose ideas
that are then taken to realization. This again means relying on external sources
for the successful leadership of your organization. To give a better frame of refer-
ence, some corporations use mixed tactics that include open and closed innovation
approaches.
The most important question to ask for the leaders while devising an appropri-
ate strategy is related to their expectations from their organization and themselves
in the future. How do they want to reinvent their team? Is the plan of action they
have aligned with their goals for the company? If yes, a strategic model for innova-
tion leadership is then nothing more than a roadmap for a team’s coveted future.
Strategic innovation takes the road less traveled – it challenges an organization to
look beyond its established business boundaries and mental models and to partici-
pate in an open-minded, creative exploration of the realm of possibilities [19, 20].
Here, I will give you a basic structure on how organizations should choose the
best strategy. First of all, start with making sure you are selecting the leadership
styles or practices that you are more equipped to execute than your counterparts.
One relatively solid framework for making those strategic choices and choosing
those behaviors is the strategy choice cascade [21]. It is described in the strategy
book titled Playing to Win by. Former P & G CEO Lafley and Roger L. Martin, Dean
of the Rotman School of Management at the University of Toronto.
One of AG Lafley’s specific suggestions is that organizations build and develop
an entire list of strategic decision-makers who know what it takes to attract and
connect with participation and a more conscious structure. Innovation is one of
the most difficult to align with strategy. It’s chaotic in nature, and its team-oriented
approach sometimes pushes the boundaries, challenging a variety of established
positions and becoming seemingly contradictory. Achieving alignment requires
some better options that repeatedly trace back to innovation activities and strategic
needs [22].
This requires a selection cascade model. In this model, understanding flows
through coordinated cascade decisions. Its purpose is first to give the “decision-
maker” the opportunity to make individual decisions so that they can move it
upstream again by stimulating and facilitating different levels of common sense or
best judgment. Roger Martin and Hillary Clinton proposed “the art of integrated
6
Innovation Leadership in the 21st Century
DOI: http://dx.doi.org/10.5772/intechopen.101932
thinking [23]. To sum it all up, just as in battles, businesses or governments, simi-
larly a good strategy put to work is what separates a successful innovation leader-
ship from a poor one. This makes strategic leadership one of the most important
components of innovation in the 21st century.
The days of brainstorming on whiteboards and sticky notes are long gone.
Innovation in leadership looks slightly different in this century, especially when
we talk about digitalization. But what exactly is digital transformation? “It is the
integration of digital technology into all areas of a business, fundamentally chang-
ing how you operate and deliver value to the customer “. This transformation has
also come about as a cultural change that requires companies to constantly challenge
the present state of affairs, and observe and gracefully accept failure. Since users are
now at the center of every digital experience, it has now become all the more impor-
tant to develop leaders that cultivate a work culture that rewards innovation which
in turn drives efficiency and thus better delivery of services to the users. Rapid
growth in mobile connectivity and remarkable strides in the cloud has reduced
the costs incurred in establishing global platforms since it has become simpler to
dismantle technological barriers. In fact, as research by the MIT Sloan School of
Management shows, 14 out of the top 30 brands by market capitalization in 2013
were platform-oriented companies. These organizations thrive on digitalization in
innovation leadership [24].
Also, businesses are now being measured by the outcomes of the services they
deliver which has increased the importance of selling results that appeal to the
customer. A rising enterprising culture means that hundreds of start-ups have
emerged that have overshadowed the traditional markets that could not keep up
with digitalization [25]. Include a list of Uber, Twitch, Tesla, Hired, Clinkle, Beyond
Verbal, Vayable, GitHub, WhatsApp, Airbnb, Matternet, Snapchat, Homejoy,
Waze, and more. These startups can scale much faster than traditional analog
companies. It took 20 years for Fortune 500 company to reach an average market
capitalization of $ 1 billion, but Google achieved that in 8 years, and companies
such as Uber, Snapchat, and Xiaomi achieved it within 3 years [26]. What is the
reason behind this tremendous growth? Maybe because these enterprises have
the foundational stability and the 360-degree vision to enter and dominate as-yet
unidentified niche markets which will forever remain shut to the slower moving,
more traditional stalwarts of the industry.
To put this concept into perspective, as Zeike et al. (2019) mention, we
measure the holistic vision of digital leadership as an overlap between digital
literacy (i.e., computer literacy, ICT literacy, digital competence, etc.) and digital
leadership itself. In simpler terms, leadership capabilities are the ways in which
managers are driving change [27].
I will end this on a case study of the leading aerospace company in the world and
how it was transformed for the digital age. Boeing is sitting in the gold mine of the
data. A single trip on one of the company’s 787 Dreamliners can generate up to 1 tera-
byte of data. It takes hundreds of planes and tens of thousands of trips a year ... well,
you understand what’s important. However, to use all this data to improve features
such as product development and value-added services for customers, a 102-year-old
company needed to redefine its an approach to software [28]. Bill Boeing created the
company in 1916 with the clear philosophy “build something better “. Niki Allen,
a 14-year veteran of the aerospace company lead the effort to transform Boeing’s
approach towards digitalization. To execute this, Allen developed a “master plan”
7
Leadership in a Changing World - A Multidimensional Perspective
that was based on the Three Es: Engagement, Excellence, and Enablement. Her
approach is illuminating to other organizational executives embarking on digital
transformation journeys at their enterprises and sheds light on how innovation
leadership in a digital world looks like [29].
8
Innovation Leadership in the 21st Century
DOI: http://dx.doi.org/10.5772/intechopen.101932
9
Leadership in a Changing World - A Multidimensional Perspective
pushing boundaries and challenging the status quo. His team members must be
encouraged to show their vulnerabilities, to reveal what they know or think, and
to accept their mistakes and willing to correct them. There should be elimination
of a hierarchy system that leads to an atmosphere of fear within the organization.
Inculcating these practices can bring about positive changes towards innovation.
Conflict of interest
Author details
Fatimah AlAhmari
King Faisal Specialist Hospital and Research Center, Riyadh, Saudi Arabia
© 2022 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms
of the Creative Commons Attribution License (http://creativecommons.org/licenses/
by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,
provided the original work is properly cited.
10
Innovation Leadership in the 21st Century
DOI: http://dx.doi.org/10.5772/intechopen.101932
References
[1] Gliddon D, Rothwell W. Innovation CA: Sage; 2016. p. 494. Available from:
Leadership. 1st ed. Routledge; 2020. https://journalhosting.ucalgary.ca/
DOI: 10.4324/9781315178219 index.php/cjeap/article/view/42995
[4] Hoey JK. Build Your Dream Network: [11] Meng Y, Tan J, Li J. Abusive
Forging Powerful Connections in a supervision by academic supervisors
Hyper-connected World. Tarcher and postgraduate research students’
Perigee; 2018. https://www. creativity: The mediating role of
phoenixbooks.biz/book/9780143111498 leader–member exchange and intrinsic
motivation. International Journal of
[5] Ioannis. The Leadership Style of The Leadership in Education. 2017;20(5):
Future. The People Development 605-617. DOI: 10.1080/13603124.2017.
Magazine. 2019. Available from: https:// 1304576
peopledevelopmentmagazine.
com/2019/10/16/leadership-style-of-the- [12] Arif M, Zahid S, Kashif U,
future/ Sindhu MI. Role of leader-member
exchange relationship in organizational
[6] Developing Leadership Skills. change management: Mediating role of
Available from: http://oer2go.org/mods/ organizational culture. International
en-boundless/www.boundless.com/ Journal of Organizational Leadership.
management/textbooks/boundless- 2017;6(1):32-41. DOI: 10.33844/
management-textbook/leadership-9/ ijol.2017.60339
developing-leadership-skills-74/
developing-leadership-skills-365-3463/ [13] Uddin MA, Fan L, Das AK. A study
index.htmlContent and user of the impact of transformational
contributions on this site are licensed leadership, organizational learning,
under CC BY-SA 4.0 with attribution and knowledge management on
required organizational innovation. Management
Dynamics. 2017;16(2):43-45
[7] Anderson P. What is Path-Goal
Theory? PSYCH 485 blog. 2016. [14] Meroño-Cerdán AL, López-
Available from: https://sites.psu.edu/ Nicolás C, Molina-Castillo. Risk
leadership/2016/06/29/what-is- aversion, innovation and performance
path-goal-theory/ in family firms. Economics of
Innovation and New Technology.
[8] Northouse PG. Leadership: Theory 2018;27(2):189-203. DOI: 10.1080/
and Practice. 7th ed. Thousand Oaks, 10438599.2017.1325569
11
Leadership in a Changing World - A Multidimensional Perspective
[15] Chu M. The Steve Jobs Method of School Press; 2017. http://www-2.
Innovation: Why You Should Stop rotman.utoronto.ca/rogermartin/
Making Things From Scratch. Jumpstart Becominganintegrativethinker.pdf
your Dream Life; 2019. Available from:
https://medium.com/jumpstart-your- [24] Brown S. How to Master Two
dream-life/the-steve-jobs-method- Different Digital Transformations. Ideas
of-innovation-why-you-should-stop- Made to Matter; 2020. Available from:
making-things-from-scratch-26c6f https://mitsloan.mit.edu/ideas-made-
583a031 to-matter/how-to-master-two-different-
digital-transformations
[16] Dios AD, Kong L. Handbook on the
Geographies of Creativity. 1st ed. [25] Companies with Better Digital
ElgarOnline; 2020. DOI: 10.4337/ Business Models HaveHigher Fnancial
9781785361647 Performance, Center for Information
System Research, MIT Sloan
[17] OECD. Innovating Education Management. Research Briefing. July
and Educating for Innovation: The 2013;13(7)
Power of Digital Technologies and
Skills. Paris: OECD Publishing; 2016. [26] Nauwijn B. New Way of Digital
DOI: 10.1787/9789264265097-en Business Models. TJIP; 2017. Available
from: https://www.tjip.com/en/
[18] Dani R. When ideas trump interests: publications/new-way-of-digital-
Preferences, worldviews, and policy business-models
innovations. Journal of Economic
Perspectives. 2014;28(1):189-208 [27] Zeike S, Bradbury K, Lindert L,
Pfaff H. Digital leadership skills and
[19] Mueller J, Melwani S, Goncalo JA. associations with psychological well-
The bias against creativity: Why people being. International Journal of
desire but reject creative ideas. Environmental Research and Public
Psychological Science. 2011;23(1):13-17. Health. 2019;16(14):2628. DOI: 10.3390/
DOI: 10.1177/0956797611421018 ijerph16142628
[20] Dearlove D. The Chief Strategy [28] Shivdas S, Shepardson D. U.S. FAA
Officer Playbook. Thinkers50 Limited; Confirms Boeing Halt to 787 Dreamliner
2018. DOI: 10.1787/9789264265097-en Deliveries. Reuters; 2021. Available
from: https://tanzu.vmware.com/
[21] Taylor A. Strategy Implementation: content/blog/boeing-and-the-three-e-s-
How To Cascade Your Strategic Plan. of-digital-transformation
Strategy Management Consulting;
2019. Available from: https://www. [29] Kelly J. Boeing and the Three Es of
smestrategy.net/blog/how-to-cascade- Digital Transformation. Vmware Tanzu;
your-strategic-plan 2018. Available from: https://tanzu.
vmware.com/content/blog/boeing-
[22] Scene. Scenes from An Interview- and-the-three-e-s-of-digital-
AG Lafley. Sarasota Scene Magazine; transformation
2021. Available from: http://www.
scenesarasota.com/magazine/ [30] Watkinson J. Who Inspired the
clean-scenes-interview-ag-lafley/ Founders of Pixar? Innovation at Work;
2014. Available from: https://
[23] Martin R. The Opposable Mind: innovationatwork.wordpress.
How Successful Leaders Win Through com/2014/10/01/who-inspired-the-
Integrative Thinking. Harvard Business founders-pixar/
12
Innovation Leadership in the 21st Century
DOI: http://dx.doi.org/10.5772/intechopen.101932
13