Abstract:

Leadership is defined as a multilevel interactive process between a leader and a follower, that occurs in a particular situation, where a leader target a specific purpose, and together reach this goal (Yammarino, 2013). It is considered as one of the most influential predictors of innovation (Mumford, Scott, Gaddes and Strange, 2002; Raisch and Birkinshaw, 2008), since it supports organizational learning and performance (Argyris, 1993). In fact, the complex nature of the innovation process, the fast pace of change, market volatility, perpetual technological change, are factors forcing firms to be innovative and to continually explore to the quest of new opportunities and to exploit as they arise. It appears that it is vital for firms to exploit and explore simultaneously (Chen and Katila, 2008). March (1991), associates exploitation to: refinement, choice, production, efficiency, selection, execution and implementation. Its core activities lies on improvements, the expansion of existing skills, technologies and paradigms, its returns are positive, predictable and short term. As for exploration,  it is about: search, variability, risk taking, experimentation, flexibility, discovery and innovation. Its essence lies on experimentation and the search of new alternatives, its returns are uncertain, distant in time and often negative. This simultaneous approach of having exploitation and exploration at the same level, is referred to as ambidexterity which is “the term used to describe the active management of these poles” (Good and Michel, 2013, p. 435).