IJIMT 2016 Vol.7(5): 206-212 ISSN: 2010-0248
doi: 10.18178/ijimt.2016.7.5.674

Does Leadership Matter in Innovation and New Business Venturing? Testing the Mediating Effect of Absorptive Capacity

Loo-See Beh and Imran Shafique
Abstract— This study aims to investigate whether leadership matters in promoting innovation and new business venturing. Using survey questionnaire, data is collected from the manufacturing SMEs of Pakistan. Structural equation modeling (SEM) technique is used for analysis. The results demonstrate that transformational leadership has positive influence on innovation, new business venturing and corporate entrepreneurship Absorptive capacity also has a mediating effect between transformational leadership with innovation and new business venturing.

Index Terms— Transformational leadership, absorptive capacity, innovation, new business venturing, corporate entrepreneurship.

The authors are from Faculty of Economics & Administration, University of Malaya, Kuala Lumpur, Malaysia (e-mail: lucybeh@um.edu.my, shafiqueimran@hotmail.com).

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Cite: Loo-See Beh and Imran Shafique, " Does Leadership Matter in Innovation and New Business Venturing? Testing the Mediating Effect of Absorptive Capacity," International Journal of Innovation, Management and Technology vol. 7, no. 5, pp. 206-212, 2016.

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