Leadership Styles and Open Innovation in Higher Education: A Theoretical Review of Employee Absorptive Capacity and Performance in Colleges of Education in Ghana

Purpose: The aim of this study is to investigate the impact of transformational, transactional, and distributed leadership styles on open innovation and institutional performance in Colleges of Education in Ghana. The study will consider employee absorptive capacity as a mediating variable in the relationship between leadership styles on engagement in innovation and the outcomes of innovation. Methodology: A systematic literature review was undertaken of peer-reviewed literature published from 2020 to 2024. Databases searched included Scopus, Web of Science, Google Scholar, ERIC and African Journals Online. The literature review focused on leadership, innovation, and absorptive capacity in Sub-Sahara Africa specifically around teacher education. Findings: While transformational leadership promotes innovation by articulating a vision, encouraging staff agency, and cherishing experimentation, transactional leadership assures compliance with policies and rules while establishing boundaries for the organizational structure. Additionally, distributed leadership fosters collaboration and sharing of information and knowledge across organizational silos. Absorptive capacity emerged as a significant mediator between leadership and performance; however, barriers such as resource limitations and institutional inertia prevented the ideal situation. Unique Contribution to Theory, Practice, and Policy: The review offers a multi-theoretical perspective, including leadership theory, open innovation, and absorptive capacity in a Sub-Saharan context. It recommends hybrid leadership strategies according to institutional realities, and it provides policy implications such as encouraging flexible governance, executive leadership training, and investment in knowledge infrastructure to promote educational innovation in Ghana.