The purpose of this paper is to examine how innovative leadership (INL) drives innovation performance (INP) in banks.
This study develops and investigates a research model by assessing the viewpoints of 260 chief executive officers (CEOs) from the branches of 21 quality-certified banks, leveraging the Smart partial least squares technique.
INL had a positive and significant impact on INP. Total quality management (TQM) partially and significantly mediated the association between INL and INP. Technological turbulence, government regulation (GOV), market dynamism (MKD) and industry competitiveness (CMP) positively and significantly moderated the INL–TQM association.
INP causal linkages and variations may be better understood with longitudinal investigations, hence the need for further studies in this area. External influences may affect industries or contexts differently, requiring further research into various industries.
In an industry with fast-paced and ever-changing industrial technology, strict government laws, a higher level of MKD and increased competition, firms must hire or groom innovative CEOs to promote the adoption of new and creative quality enhancement strategies that meet clients’ short- and long-term needs.
To the best of the authors’ knowledge, this paper is the first to show how TQM can serve as a pathway for innovative leaders to follow. It is an inaugural attempt to explain the specific environmental dynamics that are necessary for the INL–TQM association to thrive.
