AN ASSESSMENT OF THE ROLE OF INNOVATION LEADERSHIP IN ORGANIZATIONAL CHANGE AMONG FINTECH COMPANIES IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the Study

The function of leadership is crucial in facilitating and overseeing organizational change by fostering a conducive environment for change adoption. In the present era, characterized by a strong focus on technology, the principles governing company growth and achievement have undergone significant and rapid transformations. Organizations must adapt and innovate in response to a dynamic environment. However, the utmost importance lies in leadership planning and innovation. Innovation, in essence, refers to the process of altering established methods in order to generate valuable new creations (McKeown, 2018). It can also be seen as a modification in the product or services that includes the development of features and capabilities, as well as the introduction of completely new concepts that have never been seen before (Benner & Tushman, 2023). Likewise, innovation can be defined as the process of enhancing an organization's performance and facilitating its sustainable success. On the other hand, innovation leadership in organization involves the identification of novel approaches to address various challenges, which might enable an organization to offer a shared resource for innovation and change (Vadim Koteliikov, 2004).  Organizational changes refer to the process of organizations undergoing or having experienced transformation. It can be used to describe their story of achievement, any kind of experience, or failure (Hage, 2019). In addition, it refers to a series of events that lead to a movement in the direction and/or processes of an organization, ultimately impacting the way it operates (Hage, 2019). Organizational change becomes necessary when management experiences unhappiness with the prevailing state of affairs. Beyond that, organizational changes can be either deliberate or unforeseen, but in either scenario, they are highly significant and occasionally become critical to manage in companies. Fintech companies operate in an environment characterized by technological disruption, changing regulatory frameworks, and shifting customer preferences.However, innovation leaders provide direction and purpose to organizational change initiatives, guiding the company towards sustainable success and achieving goals and objectives.Furthermore, the leaders encourage experimentation, risk-taking, and knowledge sharing among employees, creating an environment where creativity flourishes. According to Whitney and Schau (2018) innovation leadership styles foster cross-functional collaboration and communication, breaking down silos and encouraging diverse perspectives from employees.

 Researchers have examined the concept of innovation from various perspectives, such as technology, economics, social and global environments, politics, customers, market trends, organizational culture, behaviour, and organizational change. There are multiple approaches to understanding innovation from an organizational standpoint (Fagerberg et al, 2004). In their article "Nurturing Organizational Innovation During Change," Khazanchi, Slay, and Rothenberg argue that organizational change can result in organizational innovation. They suggest that successful organizational change enhances an organization's level of personal creativity, which serves as a fundamental element for fostering organizational innovation (Khazanchi, Slay, & Rothenberg, 2006). In organizations, innovative leaders take on leadership roles to foster micro-innovation domains, which are also referred to as creative energy domains (Gratton, 2007). Consequently, this cultivates enthusiasm and vitality among fellow employees, potentially resulting in creativity.  In a metaphorical sense, innovative leaders can be seen as the agents of change in small-scale innovation areas, initiating substantial progress and driving the system towards innovation and organizational entrepreneurship. According to Gratton (2007), innovative leaders are agents that stimulate change, referred to as "hot spots". Taylor & La Barre (2007) characterize them as "mavericks", while Collins (2001) refers to them as a "flywheel". However, the inventive approach of leaders can be beneficial in cultivating an innovative culture within an organization, ultimately leading to innovations for that organization. Therefore, a survey will be conducted in order to assess the role of innovation leadership in organizational change among fintech companies in Cameroon.

1.2 Statement of the Problem

There are indications suggesting that the traditional hierarchical structure within organizations is eroding, giving way to the growing significance of competence networks at local, regional, and global levels. These networks are assuming responsibility for product and service design, manufacturing, and distribution. Additionally, decision-making processes appear to be undergoing significant streamlining, with many decisions now being made directly at the operational level, closer to customers. In what is termed as a front-line organization, decision-making authority is decentralized, placing it in the hands of those closest to customers. Ideally, there should be seamless interaction between the expertise of fintech  employees and customer needs. This trend is likely to diminish the importance of an organization's internal experiences and emphasize the value derived from direct customer interactions. Furthermore, scholars also highlight that the innovative leadership approach can increase the chances of success for a leader to get the vision (Bass, 2018). Under the light of scientific articles and journals it can be seen that vision and innovative approach are two of those important characteristics of leadership which can make the leader more effective to address the issue of organizational change. Hence, it is in the light of these that the study seeks to assess the role of innovation leadership in organizational change among fintech companies in Cameroon.

 1.3  Objectives of the Study

The main purpose of this study is to assess the role of innovation leadership in organizational change among fintech companies in Cameroon. Specifically, the study will;

To examine how innovation leadership influences organizational change processes in fintech companies in Cameroon.

To assess the impact of innovation leadership on the successful implementation of organizational change initiatives in the fintech companies in Cameroon.

To investigate the challenges associated with integrating innovation leadership into organizational change in fintech companies in Cameroon.

1.4  Research Questions

The following questions have been prepared for the study:

How does innovation leadership influence organizational change processes in fintech companies in Cameroon?

What is the impact of innovation leadership on the successful implementation of organizational change initiatives in fintech companies in Cameroon?

What are the challenges associated with integrating innovation leadership into organizational change in fintech companies in Cameroon?

1.5 Research Hypotheses

H0:There is no significant relationship between innovation leadership and organizational change among fintech companies in Cameroon.

Ha: There is a significant relationship between innovation leadership and organizational change among fintech companies in Cameroon.

1.6 Significance of the Study

The study will help fintech companies in Cameroon adapt to rapidly changing market conditions, implement new technologies, and stay competitive. Additionally, the findings will provide managers and executives  insights into effective leadership strategies for driving organizational change and fostering innovation.Moreover, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the role of innovation leadership in organizational change among fintech companies in Cameroon.

1.6 Scope of the study   

The scope of this study is boarded on the role of innovation leadership in organizational change among fintech companies in Cameroon. Empirically, this study will To examine how innovation leadership influences organizational change processes in fintech companies, assess the impact of innovation leadership on the successful implementation of organizational change initiatives in the fintech companies and investigate the challenges associated with integrating innovation leadership into organizational change in fintech companies.

Geographically, the study will be delimited to some selected fintech in Yaounde, Cameroon.

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Leadership: the process of influencing and guiding individuals or groups towards the achievement of goals or objectives.

Innovation: is defined as the application of new ideas, processes, products, or procedures that benefit the individual, the group, or the society (West and Farr, 2018).

Innovation leadership: involves the ability of leaders to foster a culture of creativity, experimentation, and continuous improvement within an organization.

Organizational change: the process of implementing planned alterations to an organization's structure, processes, culture, or strategies with the aim of improving its effectiveness, adaptability, or competitiveness.