The relationship between leadership, management innovation, and service performance: a study among electronic leadership, transformational leadership, and transactional leadership

This research is guided by the upper echelons theory and extends prior work on how different leadership styles affect management innovation and an organization’s service performance by investigating the direct and indirect effects of electronic, transformational, and transactional leadership styles on service performance, mediated by management innovation, in the context of accounting firms in Thailand. Analysis of data collected via a questionnaire from 594 professional accountants during the COVID-19 pandemic indicates that all three leadership styles have a positive effect on management innovation. However, the effect of electronic leadership on service performance was fully mediated by management innovation, whereas transformational and transactional leadership had a direct impact on service performance. This study suggests that electronic leadership is not an independent leadership style. It provides a means for transformational and transactional leadership to influence followers. We discuss the need for management innovations that utilize effective leadership styles.