Abstract:

Innovation represents the innovations and changes made in order to increase the profits of. Some managers have the idea that innovation practices will bring negative effects to the business. This study explores the relationship between the perception that managers will have a negative impact on the business as a result of innovation practices and the transformative and interactive leadership styles they apply. For the purpose of the study, 108 small and medium-sized enterprises (KOBI) owners and managers operating in and around Bursa have been conducted field research. The data obtained using the survey technique in the field research was evaluated by correlation and identificative statistical analysis. The research found that there was a reverse relationship between the transformative leadership style and the uncertainty that innovation will bring and the negative perceptions of innovation that it will face with customer resistance. The interactive leadership style has come to the conclusion that it increases the perception of position risk, the idea that innovation will bring additional costs, the negative perception of innovation that it will face customer resistance and staff resistance.

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