Impact of Managerial Mindset on Innovation Performance

Abstract

The purpose of this explanatory thesis is to study how managerial mindset relates to the innovation performance. The research results are aimed to contribute to a profound understanding of this relationship, and what mindset management can adopt in order to enhance the innovation performance. Mindset is an individual’s belief about the malleability or fixedness of human intellect and abilities. Thus, holding either of the two mindsets can be a critical factor affecting innovation performance of a company. A quantitative survey was designed to assess the managerial mindset and their respective innovation performance followed by the conclusive data analysis and conclusions. The originality and value that this thesis adds, is to examine the impact of managerial mindset on innovation performance as well as the moderating effects of transformational leadership to this relation. The results indicate a positive significant impact of growth mindset of managers on innovation performance. The opposite impact holds true for fixed mindset which can be moderated when transformational leadership is adopted by the managers. The mindset of these middle managers in terms of fixed and growth mindset, is predictive of how they will influence the innovation activities going on in their company. Future researchers can extend this study to other industries and different management levels along with taking into consideration the impact of different geographies or cultures.