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Combining theoretical insights from both the leadership and innovation literature, we examine the role of cross-level leadership fit or similarity in leadership styles at the firm and unit levels and its relationship with innovation outcomes at the unit level. Hypotheses are formed indicating that transformational leaders enable exploration and transactional leaders facilitate exploitation. Results from a multifirm, multiunit, multisource study indicate that exploration is enhanced when transformational leaders are present at both the firm and unit levels, whereas exploitation is enhanced when transactional leaders are present at both the firm and unit levels. Results suggest that leadership similarity is an important multilevel antecedent to unit-level outcomes. Further, high-performance work systems serve as situational enhancers that strengthen the effects of cross-level leadership fit on unit-level innovation outcomes.
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Messersmith et al. (2017) studied this question.
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