Understanding the Interplay of Organizational Climate and Leadership in Construction Innovation

Innovation can create value for an organization and its stakeholders. In developing an innovation blueprint in complex contexts, such as construction, previous studies have alleged that transformational leadership is an important determinant of innovation. This study aims to investigate the role of innovation climate and learning transfer climate on the relationships between leadership and innovation in the construction sector. A questionnaire survey was conducted with 158 returns from 500 respondents (client developers, construction consultants, and contractors in China). The findings reveal that (1) support for innovation (innovation climate factor) moderates the effects of intellectual stimulation, individualized consideration (transformational leadership factor), and contingent rewards (transactional leadership factor) on innovation, and (2) performance self-efficacy (learning transfer climate factor) moderates the effects of intellectual stimulation (transformational leadership factor) and contingent rewards (transactional leadership factor) on innovation. This study reveals the intertwining relationships between leadership, climates, and innovation and lays a platform for further longitudinal, qualitative studies. Managerial implications are discussed; different leadership and management climates need to be strategically adopted and nurtured in dynamic organizational environments. (C) 2017 American Society of Civil Engineers.