“A Qualitative Exploration of Leaders' Roles in Fostering a

Culture of Innovation between the top management and

middle management in the Dutch banking sector.”

Student : Leidy Gabriela Atmidjojo Parra

Student number : 2585340
Work group : WC-05
Course : Research in Business Administration – Strategy &
Organization (Assignment 1) – Qualitative track
Course coordinator : Mr. David Kroon
Date : 03 March 2024
Word count : 3229
Introduction to Research Problem and Research Question

The contemporary banking sector operates within a dynamic and rapidly changing environment,
characterized by technological advancements, regulatory reforms, and evolving customer expectations.
In response to these challenges, fostering a culture of innovation has become imperative for banking
institutions to maintain competitiveness and ensure long-term sustainability (Santos-Vijande et al., 2013;
van der Meer et al., 2014). Central to fostering such a culture is effective leadership, which plays a
pivotal role in shaping organizational practices, fostering employee engagement, and driving innovation
(Avolio et al., 2009).

However, while numerous studies have explored the relationship between leadership and innovation in
various industries, there exists a notable gap in the literature concerning the specific leadership styles
and their impact on innovation culture within the Dutch banking sector. Although some research has
addressed leadership and innovation in banking (e.g., Ofori & Aryeetey, 2018; Chien et al., 2020), the
majority of studies have focused on broader organizational contexts or specific leadership styles without
adequately considering the unique characteristics of the Dutch banking sector.

Furthermore, existing studies often lack a comprehensive examination of the interplay between
leadership styles at different hierarchical levels (e.g., top management and middle management) and
their influence on innovation culture within banking institutions. While transformational leadership has
been widely studied and recognized for its positive impact on innovation (Bass & Riggio, 2006; Wang et
al., 2019), the specific characteristics and effectiveness of transformational leadership within the Dutch
banking context remain underexplored.

Similarly, transactional leadership, which emphasizes contingent rewards, management by exception,

and laissez-faire behaviors (Bass & Avolio, 1994), may have differential effects on innovation depending
on contextual factors (Judge & Piccolo, 2004; Wang et al., 2005). However, limited research has
examined the characteristics of transactional leadership and its implications for innovation culture within
Dutch banks.
Moreover, while the literature acknowledges the importance of an innovative culture for organizational
success (Anderson et al., 2014; Chen & Nadkarni, 2017), there is limited empirical research on the
specific characteristics of such a culture within Dutch banking organizations. An innovative culture
encompasses aspects such as openness to new ideas, willingness to take risks, collaboration, and agility
(Damanpour & Schneider, 2006; Sarros et al., 2011), which may manifest differently within the cultural
and regulatory context of Dutch banks.

Therefore, this study aims to address these gaps by investigating the following research question: "What
are the leadership styles undertaken by leaders between top management and middle management in
the Dutch banking sector concerning fostering a culture of innovation?”

By exploring the characteristics of transformational and transactional leadership styles, as well as the
underlying factors contributing to an innovative culture, this research seeks to provide valuable insights
into the leadership practices that effectively promote innovation in Dutch banking organizations.

Critical Review of Academic Articles

Article 1: "Transformational Leadership and Performance Across Criteria and Levels: A Meta-Analytic
Review of 25 Years of Research" by Wang et al. (2019)

Wang et al. (2019) conducted a comprehensive meta-analytic review of transformational leadership

research spanning 25 years to examine its relationship with various performance outcomes across
different organizational levels. The study provides valuable insights into the effectiveness of
transformational leadership in driving organizational performance, which is crucial for understanding its
relevance in fostering a culture of innovation within the Dutch banking sector.

The findings of Wang et al. (2019) suggest a positive and significant relationship between
transformational leadership and performance across multiple criteria and levels. Specifically,
transformational leadership was associated with higher levels of employee satisfaction, organizational
commitment, and job performance. Moreover, the study highlights the importance of considering
contextual factors, such as organizational level and cultural context, in understanding the effectiveness
of transformational leadership.

Article 2: "Building a Climate for Innovation Through Transformational Leadership and Organizational
Culture" by Sarros et al. (2011)
Sarros et al. (2011) explore the role of transformational leadership and organizational culture in fostering
a climate for innovation within organizations. The study emphasizes the importance of leadership
behaviors and organizational practices in creating an environment conducive to innovation, which aligns
with the research focus on leadership styles in the Dutch banking sector concerning innovation culture.

The findings of Sarros et al. (2011) suggest that transformational leadership behaviors, such as vision
articulation, intellectual stimulation, and individualized consideration, are positively associated with
innovative behavior among employees. Moreover, the study highlights the influence of organizational
culture, particularly factors such as openness to new ideas, risk-taking, and collaboration, in shaping
innovation outcomes.

Article 3: "Moderating Role of Follower Characteristics with Transformational Leadership and Follower
Work Engagement" by Zhu et al. (2016)

Zhu et al. (2016) examine the moderating role of follower characteristics in the relationship between
transformational leadership and follower work engagement. The study adds a nuanced understanding of
how individual differences among followers may influence the effectiveness of transformational
leadership behaviors, which is relevant for understanding leadership dynamics in the Dutch banking
sector concerning innovation.

The findings of Zhu et al. (2016) suggest that follower characteristics, such as personality traits and
demographic factors, may moderate the relationship between transformational leadership and follower
work engagement. Specifically, followers with higher levels of self-efficacy and proactive personality
were found to respond more positively to transformational leadership behaviors, leading to higher levels
of work engagement.

Integration and Comparison of Literature

Integrating the findings of these three articles provides valuable insights into the leadership styles
undertaken by leaders between top management and middle management in the Dutch banking sector
concerning fostering a culture of innovation. Firstly, the meta-analytic review by Wang et al. (2019)
establishes the effectiveness of transformational leadership in driving organizational performance,
including innovation-related outcomes. This underscores the importance of transformational leadership
behaviors, such as vision articulation and intellectual stimulation, in promoting innovation within
banking organizations.
Additionally, the study by Sarros et al. (2011) highlights the role of organizational culture in shaping
innovation climate, suggesting that transformational leadership behaviors may interact with
organizational culture to influence innovation outcomes. Therefore, leaders in the Dutch banking sector
need to not only exhibit transformational leadership behaviors but also cultivate an organizational
culture that values creativity, risk-taking, and collaboration.

Furthermore, the research by Zhu et al. (2016) emphasizes the importance of considering follower
characteristics in understanding the effectiveness of transformational leadership. Leaders in the Dutch
banking sector must recognize the individual differences among their followers and tailor their
leadership approaches accordingly to foster a culture of innovation effectively.

Relevance of Own Research

The critical review of these academic articles underscores the relevance and significance of the proposed
research on leadership styles in the Dutch banking sector concerning fostering a culture of innovation. By
building on the existing literature and addressing gaps identified in previous research, the study aims to
provide empirical insights into the specific leadership practices that contribute to innovation within
Dutch banking organizations. Moreover, by considering contextual factors such as organizational culture
and follower characteristics, the research seeks to offer practical recommendations for banking
practitioners and organizational leaders striving to cultivate an innovation-oriented culture in their
institutions.

In conclusion, the critical review highlights the importance of transformational leadership behaviors,
organizational culture, and follower characteristics in driving innovation within organizations. By
integrating and comparing the findings of relevant academic articles, the study establishes the
theoretical and practical significance of examining leadership styles in the Dutch banking sector
concerning fostering a culture of innovation.
Research Method/Design Justification

The chosen research method and design for this study are essential to ensure the robustness and validity
of the findings regarding the leadership styles undertaken by leaders between top management and
middle management in the Dutch banking sector concerning fostering a culture of innovation.

Qualitative Research Approach:

A qualitative research approach is deemed most appropriate for this study due to its suitability for
exploring complex phenomena, such as leadership styles and organizational culture, in-depth.
Qualitative methods allow for a comprehensive examination of the attitudes, behaviors, and perceptions
of individuals within the organizational context (Creswell & Poth, 2017). Given the multifaceted nature of
leadership and innovation culture, qualitative research offers the flexibility to capture rich, nuanced data
that quantitative approaches may overlook.

Semi-Structured Interviews:

Semi-structured interviews will serve as the primary data collection method for this study. This approach
enables the researcher to gather detailed insights from key stakeholders within Dutch banking
organizations, including leaders at different management levels, employees, and HR professionals. Semi-
structured interviews provide the flexibility to explore emergent themes and probe participants'
responses in-depth, facilitating a comprehensive understanding of the research topic (Gibbs, 2018).

Sampling Strategy:

A purposive sampling strategy will be employed to select participants who possess relevant expertise
and experience in leadership and innovation within the Dutch banking sector. The sample will include
leaders from both top management and middle management levels, representing a diverse range of
banking institutions to ensure the representation of various organizational contexts and perspectives.
The sample size will be determined based on data saturation, where new information ceases to emerge
from additional interviews, ensuring the richness and depth of the data (Saunders et al., 2018).

Data Analysis:

Thematic analysis will be used to analyze the qualitative data obtained from semi-structured interviews.
Thematic analysis is a systematic approach to identifying, analyzing, and interpreting patterns or themes
within the data, allowing for the exploration of recurring concepts and relationships (Braun & Clarke,
2006). The data analysis process will involve coding, categorizing, and interpreting the interview
transcripts to identify key themes related to leadership styles, innovation culture, and their interplay
within Dutch banking organizations.

Ethical Considerations:

Ethical considerations will be paramount throughout the research process to ensure the protection of
participants' rights and confidentiality. Informed consent will be obtained from all participants, and
measures will be implemented to safeguard their anonymity and privacy. Additionally, ethical guidelines
regarding data handling, storage, and dissemination will be strictly adhered to in accordance with
institutional and disciplinary standards (Bryman & Bell, 2019).

Overall, the chosen research method and design are well-suited to achieve the study's objectives by
providing a comprehensive exploration of leadership styles and their influence on innovation culture in
the Dutch banking sector.

Research Philosophy

For this research project on exploring the leadership styles undertaken by leaders between top
management and middle management in the Dutch banking sector concerning fostering a culture of
innovation, the research philosophy adopted is interpretivism.
Interpretivism:

Interpretivism is chosen as the underlying research philosophy due to its alignment with the exploratory
nature of the study, which seeks to understand and interpret the subjective meanings and experiences of
individuals within their social context (Denzin & Lincoln, 2018). In this research, the focus is on gaining
insights into the perceptions, attitudes, and behaviors of leaders and employees within Dutch banking
organizations regarding leadership styles and innovation culture.

Key Features of Interpretivism:

1. Subjective Reality: Interpretivism acknowledges that individuals construct their own subjective
realities based on their interpretations and experiences (Guba & Lincoln, 1994). Therefore, the research
aims to capture the diverse perspectives and interpretations of participants regarding leadership and
innovation within the banking sector.

2. Qualitative Inquiry: Interpretivism emphasizes qualitative inquiry methods, such as interviews and
observations, to explore the complexities of human behavior and social phenomena (Creswell &
Creswell, 2017). In this study, qualitative data collection methods, particularly semi-structured
interviews, will be employed to delve into the nuances of leadership styles and their impact on
innovation culture.

3. Contextual Understanding: Interpretivism emphasizes the importance of understanding phenomena

within their specific social and cultural contexts (Bryman, 2016). Accordingly, this research project will
consider the unique organizational dynamics, industry norms, and cultural factors shaping leadership
practices and innovation culture within Dutch banking organizations.

Implications for Research Design:

The choice of interpretivism as the research philosophy informs several aspects of the research design.
Firstly, it guides the selection of qualitative research methods, allowing for a holistic exploration of
leadership styles and innovation culture from the perspectives of participants. Secondly, it underscores
the importance of reflexivity and researcher subjectivity, encouraging the researcher to acknowledge
their own biases and assumptions throughout the research process (Finlay & Gough, 2003). Lastly, it
emphasizes the iterative nature of the research process, whereby data collection and analysis inform
each other, leading to a deeper understanding of the research phenomenon (Bryman, 2016).
In summary, adopting interpretivism as the research philosophy provides a framework for exploring the
complex interplay between leadership styles and innovation culture within the Dutch banking sector,
facilitating a nuanced understanding of the research phenomenon.

Conclusion:
- Thank you once again for your participation in this interview. Your insights are valuable for advancing
our understanding of leadership and innovation in the banking sector. If you have any further thoughts
or comments, please feel free to share them.

Connection to Literature Review and Research Question:

- These interview questions are designed to explore various aspects related to leadership, innovation
culture, collaboration, and trust within Dutch banking organizations. The responses obtained will be
analyzed in connection with the existing literature on leadership styles and innovation to address the
research question regarding the role of leadership in fostering innovation in the Dutch banking sector.

Sampling Approach and Justification

For this research project examining the leadership styles undertaken by leaders between top
management and middle management in the Dutch banking sector concerning fostering a culture of
innovation, a purposive sampling approach will be employed.

Justification:

1. Relevance: Purposive sampling allows for the selection of participants who possess relevant expertise
and experience in the research topic (Creswell & Creswell, 2017). Given the specific focus of this study
on leadership and innovation within the Dutch banking sector, it is essential to include individuals who
have direct involvement or insight into these areas.
2. Representation: Through purposive sampling, participants will be selected to ensure representation
from various levels of leadership within Dutch banking organizations, including top management, middle
management, and other relevant stakeholders such as HR professionals. This approach ensures diversity
in perspectives and experiences, enhancing the richness and depth of the data collected (Saunders et al.,
2018).

3. Expertise: By targeting individuals with expertise and experience in leadership and innovation within
the banking sector, the research can access valuable insights and nuanced understanding of the research
phenomenon. This expertise is crucial for gaining comprehensive insights into the dynamics of leadership
and innovation culture in Dutch banks (Bryman & Bell, 2019).

4. Efficiency: Purposive sampling allows for the efficient selection of participants based on
predetermined criteria, such as their role within the organization and their level of experience. This
targeted approach saves time and resources compared to random sampling methods, while still ensuring
the relevance and validity of the data collected (Creswell & Creswell, 2017).

Overall, the purposive sampling approach is well-suited to the objectives of this research project, as it
enables the selection of participants who can provide meaningful insights into the leadership styles and
their impact on innovation culture within the Dutch banking sector.

Validation Procedures

Ensuring the credibility, dependability, conformability, and transferability of the research findings is
essential for maintaining the rigor and trustworthiness of the study. The following validation procedures
will be implemented:

1. Credibility:

- Triangulation: Multiple data sources, such as interviews with leaders at different management levels
and document analysis of organizational policies, will be used to corroborate findings and enhance
credibility (Creswell & Creswell, 2017).

- Member checking: Participants will be provided with summaries or transcripts of their interviews to
review for accuracy and validity, allowing them to confirm or challenge the researcher's interpretations
(Guba & Lincoln, 1994).
2. Dependability:

- Audit trail: Detailed documentation of the research process, including data collection procedures,
coding schemes, and analytical decisions, will be maintained to facilitate transparency and
reproducibility (Bryman & Bell, 2019).

- Peer debriefing: Regular discussions with peers or colleagues who have expertise in qualitative
research methods will be conducted to critically review the research process and findings, thereby
enhancing dependability (Creswell & Creswell, 2017).

3. Conformability:

- Reflexivity: The researcher will maintain reflexivity by continuously reflecting on their own biases,
assumptions, and preconceptions throughout the research process, ensuring that these factors do not
unduly influence data collection and analysis (Finlay & Gough, 2003).

- Bracketing: The researcher will acknowledge and set aside their own personal beliefs or experiences
related to the research topic to prevent them from influencing the interpretation of the data (Creswell &
Creswell, 2017).

4. Transferability:

- Thick description: Detailed descriptions of the research context, participant characteristics, and data
collection procedures will be provided to enable readers to assess the transferability of the findings to
other settings or populations (Saunders et al., 2018).

- Contextualization: The unique contextual factors influencing the research findings, such as the
organizational culture and industry-specific dynamics of the Dutch banking sector, will be clearly
articulated to enhance the transferability of the results (Creswell & Creswell, 2017).

By implementing these validation procedures, the research aims to enhance the credibility,
dependability, conformability, and transferability of the findings, thereby ensuring the robustness and
trustworthiness of the study.
Limitations of the Research Design

Despite the rigorous validation procedures implemented in this research design, several limitations exist
that may impact the interpretation and generalizability of the findings. These limitations include:

1. Subjectivity in Qualitative Data Interpretation: Qualitative research relies heavily on the interpretation
of data by the researcher, which introduces the potential for subjectivity and bias (Creswell & Creswell,
2017). Despite efforts to maintain reflexivity and minimize researcher bias, interpretations may still be
influenced by individual perspectives and preconceptions.

2. Sample Size and Generalizability: The use of purposive sampling, while appropriate for capturing
diverse perspectives within the Dutch banking sector, may limit the generalizability of the findings to
other contexts or populations (Bryman & Bell, 2019). The relatively small sample size and specific focus
on Dutch banking organizations may restrict the transferability of the results to broader settings.

3. Time and Resource Constraints: Qualitative research methods, such as interviews and thematic
analysis, can be time-consuming and resource-intensive (Creswell & Creswell, 2017). Limited time and
resources may constrain the depth of data collection and analysis, potentially affecting the richness and
comprehensiveness of the findings.

Mitigation Through Alternative Research Approach

While qualitative research provides valuable insights into the complexities of leadership styles and
innovation culture, supplementing the findings with a quantitative research approach can mitigate some
of the limitations mentioned above.

1. Quantitative Surveys for Generalizability: Conducting surveys with a larger sample size across multiple
banking sectors and geographical regions can enhance the generalizability of the findings (Bryman &
Bell, 2019). Quantitative surveys allow for the collection of standardized data on leadership styles and
innovation practices, facilitating statistical analysis and comparison across different contexts.
2. Statistical Analysis for Objectivity: Quantitative research enables statistical analysis to identify
patterns, trends, and correlations within the data, reducing the influence of individual bias in
interpretation (Creswell & Creswell, 2017). By employing statistical techniques such as regression
analysis, the relationship between leadership styles and innovation outcomes can be quantitatively
assessed.

3. Cost-Effectiveness and Efficiency: Quantitative research methods, particularly surveys administered

online, are often more cost-effective and efficient in terms of data collection and analysis compared to
qualitative approaches (Bryman & Bell, 2019). By leveraging online survey platforms and automated data
analysis tools, researchers can maximize resource utilization and minimize time constraints.

Conclusion

While qualitative research offers valuable insights into the intricacies of leadership and innovation within
the Dutch banking sector, it is essential to acknowledge the inherent limitations of this research design.
By complementing qualitative findings with quantitative data, researchers can enhance the
generalizability, objectivity, and efficiency of the study, thereby providing a more comprehensive
understanding of the research phenomenon.
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leadership. Sage Publications.

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 Appendix

Interview protocol

Introduction:

- Hello, my name is Leidy Parra, and I am conducting research on leadership styles and innovation culture
in the Dutch banking sector.

-Thank you for taking the time to participate in this interview.

- The purpose of this interview is to gain insights into the leadership practices and organizational culture
within Dutch banking organizations concerning fostering a culture of innovation.

- I would like to request your permission to record this interview for accuracy and reference purposes.

- Please be assured that all information provided will be anonymized to ensure confidentiality.

Questions:

General:

1. How long have you been working in the Dutch banking sector, and what roles have you held during
this time?

Leadership:

2. Can you describe the leadership style(s) that you have observed or experienced within your
organization, particularly among leaders between top management and middle management levels?

3. How do you perceive these leadership styles influencing the culture of innovation within your
organization?

Fostering Innovation:

4. In your opinion, what are the key components of an innovative culture within Dutch banking
organizations?

5. How do you think leadership behaviors contribute to fostering or inhibiting innovation within your
organization?
Collaboration:

6. How would you describe the level of collaboration among different departments and teams within
your organization?

7. Are there any specific collaboration practices or initiatives that you believe have been successful in
promoting innovation?

Top Management: (These questions are only for Top Management)

8. What role do you think top management plays in driving innovation within the organization?

9. Have you observed any specific actions or initiatives undertaken by top management to support
innovation efforts?

Middle Management: (These questions are only for Middle Management)

10. How do you perceive the role of middle management in fostering innovation within your
organization?

11. Are there any challenges or barriers that middle managers face in promoting innovation at their
level?

Trust, Commitment, and Support:

12. Do you feel a sense of trust and commitment among team members towards achieving innovation
goals?

13. How do you think leaders can better support their teams in fostering a culture of innovation?

14. Can you provide examples of instances where you felt supported or unsupported in your efforts to
innovate within the organization?