ENVIRONMENTAL UNCERTAINTY AND THE EFFECTS OF THEORY X AND THEORY Y LEADERSHIP STYLES ON AMBIDEXTROUS INNOVATION

Abstract

This paper explores leadership-innovation ambidexterity relationship from the perspective of McGregor’s Theory X and Y when faced with environmental uncertainty and further investigates which leadership attitude is more inclined to exploitative or explorative innovation and what the effect of perceived environmental uncertainty is. A two-page questionnaire was delivered to the owners and managers of 200 registered chandelier makers and lighting firms. The general finding of our study is that regardless of environmental uncertainty, among the ones we surveyed, the majority demonstrated Theory Y attitudes 50.9% . Again, 78.18% of the participants of the study perceived their business environment as highly uncertain. We found support to our assumption that perceived environmental uncertainty will result in a greater tendency to exhibit Theory X attitude by the Theory X managers/owners. Unexpectedly, similar results were also observed for Theory Y managers/owners under the same circumstances in which they are inclined to give up some of their Theory Y attitudes. The important point here is that their Theory Y point of view, not their attitude, still holds, and that change in attitude is due to the fear to “losing everything”.

Keywords

• Theory X and Theory Y, SMEs, Innovations, Uncertainty, Ambidextrous Innovations.

ENVIRONMENTAL UNCERTAINTY AND THE EFFECTS OF THEORY X AND THEORY Y LEADERSHIP STYLES ON AMBIDEXTROUS INNOVATION

Abstract

References

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