Abstract
In this study, we examine the influence of different leadership styles(transformational
leadership and transactional leadership) on innovation in case of using management
control systems (diagnostics control system and interactive control system). Specifically,
in this study, there are three hypotheses: (1)MCS influences innovation, (2)management
leadership influences the relationship between MCS and innovation, and
(3)management leadership influences innovation. To test their hypotheses, we conducted
the questionnaire survey(n=411) targeting employees belonging to Japanese general
companies. As the result of the linear multiple regression analysis based on the survey,
we found that there had been direct influences of management leadership and indirect
influences mediated by the management control system in the innovation process.