Entrepreneurial Leadership and Employee Innovative Behaviour in Software Industry

Abstract

The study is focused on the effect of entrepreneurial leadership on employee innovative behaviour while using organisational change, employee commitment, and commitment towards change as a mediator. The study used structured questionnaires to gather data through convenience sampling technique from 213 respondents (response rate equals 61.7 percent). The data collected was then analysed by structural equation modelling technique using SPSS-AMOS to examine the relationships. It was found that innovation, being the core competency of the software houses is the most important factor for employees. Employee innovative behaviour helps organisations to survive in this dynamic business environment and is encouraged by top management. It was noted that an entrepreneurial leader has a significant and positive relationship with the innovative behaviour of the employee. Also, an entrepreneurial leader had a positive and significant relation with organisational change, employee commitment, and employee commitment towards change, hence, change is essential for these types of organisations. Entrepreneurial leaders create an environment to support change and innovation and to overcome the internal and external issues of the organisation. The implications of this study are two-fold, i.e. organisation perspective, which states that teach and train process should be followed by leaders too and leaders’ perspective, that deals with skill development to support change, motivate and encouraging employees so that they can perform better and update their skills.