Both product innovation and organizational leadership are related to organizational development. Organizational leadership does not only serve as a predictor of strategy formulation but provides the necessary strategic fit between a company’s strategy and the business environment to achieve organizational development.
Organizational leadership is exercised through top management influences over the effective distribution and utilization of resources to achieve organizational development. Leadership offers strategic direction that gives traction to strategy implementation.
Leaders influence organizational performance directly through their characteristics and behaviors and indirectly through the strategic choices they make. It is important to foster the strategic fit of the company and the environment to create the need to have a competitive advantage.
The organizational leadership role played in the strategic success of innovation is explained by factors such as culture within the leadership power that is exercised. Leaders must establish a positive relationship between innovation and performance.
Thomas, A., Odoom, R. K., Acheampong, G., & Tweneboah-Koduah Ernest. (2017). Innovation and organizational development: The role of organizational leadership. African Journal of Economic and Management Studies, 8(3), 338-351.