Innovation plays an increasingly important role in the survival and growth of all organisations irrespective of public or private enterprises. Nevertheless, most studies focus on technological innovation while there is a lack of studies examining organisational innovation relating to organisational methods. Therefore, expanding and replicating past research, this conceptual paper aims to provide a framework through which to understand and predict such influencing factors as leadership styles and employee creativity on organisational innovation as well as the interrelationships among those constructs in public enterprises in Vietnam. Specifically, by looking into research conducted in the area of organisational innovation, this study proposes a conceptual framework that can be utilised by managerial practitioners to boost organisational innovation, thereby improves the overall organisational growth and sustainable development. From the literature-based analysis, a comprehensive framework was respectively developed, illustrating the linkages between transformational leadership, transactional leadership and its dimensions on the components of organisational innovation that is being mediated by employee creativity. Moreover, the study may contribute to the literature on leadership, creativity and innovation along with enlightening the management to recognise which leadership style will effectively suit public enterprises in tandem with promoting employee creativity to foster organisational innovation.
Keywords: leadership, leadership style, employee creativity, organisational innovation