Innovation Leadership in the 21st Century

*Fatimah AlAhmari*

### **Abstract**

It is a well-known fact that innovation is hard to execute without convincing people of new ideas. It is not something that can come about without collaborations. How then do we create an atmosphere where creativity and ideas lead to innovations within the organizations? The answer lies in innovation leadership. Innovation leadership is a conception and manner that consolidates different leadership styles to motivate people to generate creative ideas, outcomes, and services. This chapter will assist you in understanding who an innovation leader is. It will help you explore different theories of innovation leadership like the Path-Goal theory and Leader-Member Exchange theory, followed by different strategies that innovation leaders have adopted over the years. This will shed light on some of the leadership styles that have emerged commonly in entrepreneurs and how it has helped them build their empire, for instance, directive, supportive, and participative leadership. The chapter will end on the best practice recommendations that research has proven are the most effective for being an effective leader and bringing about innovation in your organization.

**Keywords:** leadership, innovation, model, creativity, strategy, 21st century

### **1. Introduction and need for innovation leaders**

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 uncomfortable 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 performance". More importantly, to introduce innovation within an organization, there

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 productive 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 better. 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 technological 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 innovation 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 "leadership" 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 importantly 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 innovation 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.

## **1.1 Innovation leadership theory**

We believe innovation leadership provides particularly powerful lessons to those wanting to address the big challenges of developmental reforms within their organizations. We can define leadership as the ability to influence a group towards the achievement of its goals. In management terms, if you achieve the aim of an organization, through its members by the use of your authority, then that is called leadership. There are various theories prevalent today that dictate how leadership should look like. It is essential to really understand these theories to meet our organizational goals and groom leaders within organizations.

#### *1.1.1 Path-goal theory*

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 motivated 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 completion. 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 leaders 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 motivate 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 excellence 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, supportive, participative, and achievement-oriented leadership behaviors" [8].


and juggles ideas in a way that each member has an active involvement in the decision-making process.

• Achievement-oriented- A style where the main focus is on the attainment of the goal.

Thus Path-Goal theory is instrumental in dictating the responsibility that a leader has towards the organization and the users [9]. But how do leaders then decide which style to follow?

For example, if your followers have known how to approach a situation and are skilled, but they are not confident about their approach, then in this state you adopt a participative style, engage in an open discussion with them, get them to talk, discuss ideas and guide them on a clear path.

On the other hand, if your followers are unskilled, not in control of the situation, completely naive, then it's time to adapt the directive leadership style. Apple's culture of fairness to the employee was nurtured by Steve Jobs. As the leader, he adopted the participative style and understood that he needed to work with highly motivated employees. He did not only act as a leader but he offered guidance to the employees giving them a sense of direction [10].

### *1.1.2 Leader-member exchange theory (LMX)*

The Leader–Member Exchange (LMX) literature is hardly at its infancy, but the field is still under progressive development [11]. This theory suggests that leaders automatically develop a relationship with each of their subordinates, and the strength of these relationships strongly influences the productivity within the organization. It encompasses two-way communication between the leader and the team member. The more trust, loyalty, and support present in this bond, the better the performance of the team members will be.

A study done in 2017 found that this theory fully mediates the relationship between abusive supervision and intrinsic motivation; intrinsic motivation partially mediates the relationship between LMX and creativity, and LMX and intrinsic motivation sequentially mediate the relationship between abusive supervision and individual creativity [12]. There are three stages through which this leader-subordinate relation passes-


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 published in the International Journal of Organizational Leadership demonstrated that there exists a significant and positive relationship between LMX and organizational change management [13].

A proper understanding of these theories thus helps foster the right environment 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 innovation 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].

### *1.1.3 Creativity, leadership, and innovation- what is the connection?*

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 analogies 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 innovation 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, leadership, 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 innovative 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 thinkers 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 entrepreneurship, 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 leadership. 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

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.
