Organizational innovation and leadership styles in healthcare with the mediating role of organizational culture

Innovation in healthcare organizations is essential to provide high-quality patient care. The theories of leadership and innovation have established a strong relationship between leadership styles and organizational innovation. The study examined the relationship between leadership styles and organizational innovation in the healthcare sector as perceived by medical doctors. The mediating effect of organizational culture on relationships was also tested.

This applied study employed a cross-sectional survey design and data was collected using an online and standard questionnaire. A proportionate stratified random sampling technique was used to draw a sample from the population that consisted of medical doctors working full-time for the five largest public sector hospitals in Lahore, Pakistan. Data analysis was conducted by descriptive and inferential statistics (Structural Equation Modeling (SEM) and confirmatory factor analysis) using SPSS and Smart-PLS software.

The results suggested that there are significant and positive relationships between leadership styles and organizational innovation (p = 0.000, p = 0.030). The indirect path analysis of mediation revealed that organizational culture mediated the relationship between the three leadership styles and organizational innovation (p<0.001). However, the direct effect of transformational leadership and ambidextrous leadership on organizational innovation became insignificant (p>0.05) after incorporating organizational culture as a mediator, proving its impact on innovation.

This study provides evidence of the significance of paying attention to the leadership style of healthcare supervisors as it potentially has an impact on administrative and technological innovation. The study provides empirical evidence to healthcare managers and policymakers on the essential traits of healthcare supervisors who can promote innovation. The study also provides evidence of the importance of a supportive workplace culture that promotes innovative behaviors among medical doctors.