Leadership and Organizational Learning: The Determinants of Innovation Speed and Innovation Quality in Vietnamese Firms

Abstract

The purpose of this study is to explore the influences of transformational leadership on organizational learning and how it relates to innovation speed and innovation quality. The paper uses structural equations modeling (SEM) to investigate the correlation between the constructs based on analyzing the empirical data collected from 250 small and medium firms in Vietnam. The results support positive and significant effects of transformational leadership on organizational learning and two aspects of innovation namely innovation speed and innovation quality. It also confirms that organizational learning acts as a mediator between transformational leadership and two types of innovation. The findings, therefore, provide clearer understanding of the relationship between transformation leadership, organizational learning and aspects of innovation. It provides managers the useful knowledge and specific pathway to enhance firm’s innovation capability to effectively response to the rapid changes of business environment.