Fueling exploitative and exploratory innovation with paternalistic leadership – do intrinsic motivation and environmental dynamism moderate the relationship?

A. de Costa and Vathsala Wickramasinghe ()
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A. de Costa: University of Moratuwa
Vathsala Wickramasinghe: University of Moratuwa

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Abstract: The objectives of the study were to investigate 1) whether paternalistic leadership affects exploitative and exploratory innovation, and 2) whether intrinsic motivation and environmental dynamism moderate the direct effects of paternalistic leadership on exploitative and exploratory innovation. The study was conducted in Sri Lanka by taking a sample of respondents from the information technology sector. The results indicate a notable distinction between the factors driving exploitative and exploratory innovation. Both types of innovations are significantly affected by paternalistic leadership. However, it has a positive influence on exploitation while it has a negative influence on exploration. Intrinsic motivation significantly predicts only the exploratory innovation, while environmental dynamism significantly predicts only the exploitative innovation. This divergence can be explained by the inherent differences in the nature of these two types of innovation. Overall, this research advances theoretical understanding and provides practical guidance.

Keywords: Employee motivation; Leadership and innovation; Innovation performance; Innovation management; Leadership styles; Environmental dynamism; Intrinsic motivation; Exploratory innovation; Exploitative innovation; Paternalistic leadership (search for similar items in EconPapers)
Date: 2026-01
Note: View the original document on HAL open archive server: https://hal.science/hal-05479919v1
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Published in Management Science Letters, 2026, 16 (1), pp.75 - 86. ⟨10.5267/j.msl.2025.7.001⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05479919

DOI: 10.5267/j.msl.2025.7.001

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