HOW INNOVATIVENESS MEDIATES THE EFFECTS OF ORGANIZATIONAL CULTURE AND LEADERSHIP ON PERFORMANCE

This study explores how innovativeness mediates the effects of organizational culture and leadership on performance. Survey data are collected from 288 middle and top managers in the Jordanian airline industry. Validity and reliability analyses are performed, and direct and indirect effects are tested using structural equation modeling. Innovativeness positively and significantly mediates the effects of organizational culture and leadership on performance. Organizational culture, in turn, may contribute to innovativeness and performance, depending on the effectiveness of the organization's leadership style. A bureaucratic culture does not statistically or significantly correlate with the perceived organizational performance, but it does positively and significantly affect the perceived market performance. This study is one of the first investigations that connects innovativeness to culture and leadership, and provides empirical evidence on the topic.