Importance Of Managerial Leadership

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According to Renko et al. (2015), entrepreneurial leadership is discussed as an extraordinary style of leadership that can be exist in an enterprise or organization with any size, type, or age. Moreover, people should recognize that entrepreneurs can combine with leadership functions such as providing vision, innovation or creativity to the development of a new strategy product or service (Fernald et al., 2005). In his important investigation of the relationship between entrepreneurship and leadership, Fernald et al. (2005) also said that leader has to be entrepreneurial as well. In general, leadership influences the activities of an enterprise or organization to achieve their goals (Renko et al., 2015) as well as leadership is a vital…show more content…
Surie and Ashley (2008) define good leadership as the capability to maintain innovation and creativity in rapidly changing and uncertain environments. It is believed that leadership is a significant success factor in organizations, be they small or large, formal or informal (Fozzia et al., 2016). According Slocum and Hellriegel (2008) divided leadership into four styles: Transaction leadership, Leader-member exchange, Authentic leadership and Transformation leadership. First and foremost, Transactional leadership is a managerial style of leadership that focuses on the exchange of rewards with inferiors for tasks or targets provided by them (Parolini et al., 2009). In other words, Levine and Hogg (2010) state that leaders exchange with followers to implement things done, establish an expectation goals and targets and providing recognition and rewards for task completion. Leader-Member exchange, the second style, is the discussion and exchange about benefits, their relationships, information or ideas between leaders and followers (Levine and Hogg, 2010). Furthermore, Hollander (1993) holds the view that people in relationships who participate in the exchange must provide satisfactory outcomes for the…show more content…
Therefore, for Chen et al. (2014), corporate entrepreneurship may have a significant influence on the relationship between an enterprise’s transformational leadership and its product innovation performance. Galloway et al. (2015) describes four basis kind of transformational leadership: idealized influence, inspirational motivation, intellectual stimulation and individual consideration. Firstly, idealized influence, where the leader becomes a role model with diligence and elegance for subordinates (Chen et al., 2014). Through this characteristic, they can mobilize the belief, rust and respect of their followers to increase credibility in product innovation performance or creative strategy (Gumusluoğlu and Ilsev, 2009). Second, inspiring motivation is that people are inspired by their leader (Galloway et al., 2015). Through this, the vision or mission of the firm may be described clearly by transformational CEOs (Chen et al., 2014) . A great example is that leaders can perform a vital role of product innovation by enhancing potential energy motivation of subordinates achieve this, resulting in them making more effort to perform well tasks as well as stimulate their creativity (Mumford et

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