Participatory leadership culture. Participatory leadership culture refers to the overall
atmosphere of the organization that supports and motivates innovation, and leadership
that facilitates innovation. The ability to lead, direct, and support the creation and
sustaining of innovation behaviors is important for a firm (Bessant, 2003). Therefore, it is
important that managers invest time in increasing the personnel’s opportunities to
participate in development activities (Lampikoski and Emden, 1999), as well as strike
a balance that allows the employees to act on good ideas (Dobni, 2008). Today, leadership
is seen as a skill to direct the employees’ energy toward the right direction instead of
giving orders and instructions (Lampikoski and Emden, 1999). The management style is
connected to the culture of the firm, which plays an important role in motivating the
employees. Innovation capability requires a collaborative, open culture, and incentives
that reward challenging current actions (Skarzynski and Gibson, 2008).