Effect of Visionary Leadership on Team Innovation: Understanding Mediating Roles of Team Cohesion, Team Knowledge Collaboration and Team Bound-ary Management

Abstract

This study is important as it seeks to fill the existing gap in the existing literature on the interactions between visionary leadership and team innovation in the context of the palm oil industry which is confronted with the challenge of achieving profitability while operating in an environmentally sus-tainable manner. The study sets out to investigate the impact of visionary leadership on the innova-tion exhibited by the teams while focusing on team cohesion, team knowledge collaboration and team boundary management as the mediating variables. A quantitative explanatory design was adopted and data was collected from 280 respondents in nine palm oil factories in Rokan Hulu Re-gency, Riau Province, Indonesia. Databases include Structural Equation Modeling (SEM) Managed to achieve data processing and analysis of the relationships among the variables. The results show that anyway, visionary leadership is a strong contributor to team innovation, both directly and indi-rectly, through its principles such as teamwork, boundary management, and even collaboration. From these findings, it is critical to highlight that visionary leadership is key in enhancing the team work environment and the team collaboration potention which in the long run triggers innovation. Such management practices should focus on how to develop leadership that drives sharing of knowledge and boundary management as this improves the innovation capabilities of the firm.