Journal of Management and Business Solutions 3092-7226 1 Serial Number 4 2023 10 01 Understanding the Influence of Leadership Styles on Employee Innovation and Creativity in Knowledge-Based Industries Understanding the Influence of Leadership Styles on Employee Innovation and Creativity in Knowledge-Based Industries 20 28 EN Journal Article 2023 08 05 <p>This study aims to explore how different leadership styles influence employee innovation and creativity within knowledge-based industries (KBIs), focusing on the perceptions and experiences of employees in Tehran-based organizations. A qualitative research design was employed, using a phenomenological approach to capture the lived experiences of knowledge workers. Data were collected through semi-structured interviews with 24 participants from various KBIs in Tehran, selected through purposive sampling. Interviews were conducted until theoretical saturation was reached. Each session lasted between 45 and 70 minutes. All interviews were transcribed verbatim and analyzed thematically using NVivo 12 software. The analysis involved open coding, grouping into subthemes, and development of major themes to identify patterns in how leadership behavior influences innovation and creative engagement. Three overarching themes were identified: (1) Leadership Approaches and Perceived Impact, (2) Fostering Employee Innovation and Creativity, and (3) Barriers to Creativity in Leadership Context. Transformational and adaptive leadership styles were reported as strong enablers of creativity, associated with psychological safety, autonomy, and motivation. Conversely, authoritarian, laissez-faire, and fear-based leadership styles were linked with reduced innovation due to rigidity, ambiguity, and punitive responses to failure. Key mediators such as recognition, communication, resource allocation, and risk tolerance significantly shaped the influence of leadership on innovation. Barriers included micromanagement, bureaucratic hurdles, and inconsistent feedback. Leadership styles play a critical role in enabling or inhibiting innovation in knowledge-based environments. Organizations should foster adaptive and transformational leadership capacities while minimizing rigid or passive managerial behaviors. Cultivating a supportive, communicative, and resource-rich climate is essential to unlocking employee creativity and sustaining innovation in knowledge-driven sectors.</p> https://www.journalmbs.com/index.php/jmbs/article/download/27/21