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performance and innovation

According to Drucker (1999), innovation should be viewed and implemented as an opportunity that results in the creation of a new or different product or service. Furthermore, an innovation can be an idea, practice, process, or product that transforms a new problem solving idea into an application. According to Sinek (2014), innovation can take many forms thus, we can speak of product innovation (that regards the improvement of an old product or the development of a new one) and process innovation (that consist in replacing an old technology with a new one). Incremental innovation refers to adding new characteristics to the products’ existing elements in order to increase their efficiency with the impact on prices. Lastly, radical innovation refers to the effect of an idea materialized in an invention (Krause, Gebert & Kearney, 2007). In the past decade many scholars have linked participative leadership with innovation. According to Krause, Gebert and Kearney (2007) there is a positive correlation between participative leadership and innovation. Somech (2006) also observed a positive correlation between participative leadership with team innovation. According to Vasishth (2013), quantitative research detected a positive correlation between participative leadership and individual innovation. Gong, Huang and Farh (2009) indicated that participative leadership was positively related to R&D performance. Researchjournali’s Journal of Management Vol. 4 | No. 5 July | 2016 ISSN 2347-8217 6 www.researchjournali.com 3. RESEARCH METHODOLOGY 3.1 PARTICIPANTS The study population was made up of the 13 companies that won COYA during the years 2010 to 2013. These companies were; Crown Paints, Blow Plast, Nation Media Group, Mabati Rolling Mills, Barclays Bank Ltd, Gulf Bank, Githunguri Dairy, Toyota East Africa, Kenya Wildlife Services, Nairobi Bottlers, Pan Africa Life, BRITAM and Jubilee Insurance. A census was used to survey the 84 senior managers who report directly to the CEOs of the 13 companies.