Exploring Innovation-Driven Leadership : An Empirical Study in the Aerospace and Defense Industry

Abstract: Background: The Aerospace and Defense industry requires continuous innovation and adaptation. Ambidextrous leadership, which balances exploration and exploitation, plays a crucial role in driving innovative work behavior. Understanding this relationship is important for navigating industry complexities and staying competitive in rapidly changing market conditions. Purpose: The purpose of this study is to explore the influence of ambidextrous leadership on aerospace and defense firms’ innovation at the individual level. It also deepens the understanding of conditions to improve innovation by examining the moderating role of collaborative climate.  Methodology: This study uses a quantitative research design, specifically structural equation modeling (SEM). Data was collected through a survey questionnaire, with eighty-one valid responses from professionals in the industry. Results and analysis: The study found that open leadership behavior was positively related to innovative work behavior. This means that leaders who show open leadership behaviors, such as being supportive and collaborative, have a greater impact on inspiring and encouraging innovative thinking and behavior among their employees. However, the study did not find a significant relationship between closed leadership behavior and innovative work behavior. This is surprising, as closed leadership behaviors, such as being directive and controlling, have been shown to be positively related to innovation in other studies. One explanation for this finding is that the aerospace and defense industry is a highly regulated industry with strict safety standards. In this context, leaders may be more focused on ensuring that existing products and processes are safe and dependable, rather than encouraging employees to take risks and experiment with innovative ideas. The study also found that collaborative climate was positively related to innovative work behavior. This means a work environment that supports collaboration and teamwork can foster innovation by encouraging employees to share ideas and work together to solve problems. However, the study did not find that a collaborative climate moderated the relationship between open leadership behavior and innovative work behavior. This suggests open leadership behavior positively impacts innovative work behavior regardless of the level of collaborative climate in the workplace. Recommendations for future research: Future research should address the limitations of this study by employing larger samples, objective measures, and exploring additional moderating variables such as organizational size and innovative climate. Longitudinal studies are needed to understand the sustained impact of open leadership behaviors and collaborative climates on innovative work behavior over time. By doing so, we can enhance our understanding of leadership's role in promoting innovation and develop practical recommendations for organizations across diverse industries and contexts.