A Statistical Model to Assess the Mediating Role of Organizational innovation on the relationship Between Leadership Practices and Organisational Performance: The Case of Saudi Arabian Universities
Although, numerous studies have shown that leadership practices played a significant role improving organisational performance, however, these studies were limited in addressing questions of why this relationship holds. To address this empirical gap in the literature, we utilized a sample of 256 private firms in Saudi Arabia Manufacturing and Service industry to examine whether organizational innovation mediated the effects of leadership practices on organizational performance. Results from Partial Least Square (PLS) path modeling showed that leadership practices were positively and significantly related to organizational performance. However, we found that the relationship between leadership practices and organizational performance was not mediated by organizational innovation. Implications for research and practice of our findings are discussed.