Impact of Servant Leadership, Transformational Leadership and Cultural Intelligence on Firm Innovativeness through Climate for Inclusion

Abstract

The purpose of this study is to investigate the effects of servant leadership (SL), transformational leadership (TL), and cultural intelligence (CQ) on firm innovativeness (FI). Especially it explores the mediating role of climate for inclusion (CI) between the relationships. Data collected from manufacturing companies in Pakistan and use a sample of 115 employees for analyzes of this study. A confirmatory factor analysis/ Reflective Measurement Model was applied to construct validity. The hypothesis was tested with the help of smart PLS. The relationship between servant leadership, transformational leadership, cultural intelligence, firm innovativeness, and climate for inclusion is debated in the existing literature. But the debate is characterized by a lack of climate for inclusion as a mediating variable because in previous researches climate for inclusion used an independent or dependent variable only. Additionally, this is one of the first studies that empirically investigate the relationship between two leadership style (servant leadership, transformational leadership) and cultural intelligence with firm innovativeness in the presence of a worth able mediator climate for inclusion. Through structural model, technique results show that servant leadership and transformational leadership have a remarkable influence on FI but cultural intelligence was not found to be significantly related to FI. The results further demonstrated that SL and TL have a positive and significant impact on FI under an intervening effect of CI. Furthermore, this study concluded that TL has more impact on FI as compared to SL. There are also some interesting observations that other researchers have not achieved before.