A conceptual framework for the role of leadership in financial innovation adoption in the Australian banking industry

Despite being known as one of the most innovative countries in the world, innovation in Australia has remained stagnant since the 1990s. The main objective of this study is to analyse and evaluate the role of leadership in financial innovation adoption in the Australian banking industry. Specifically, this study focuses on exploring the drivers of innovation, testing the skill and knowledge of leaders to adopt an innovation, the impact of different leadership styles on innovation, and based on the nature of innovation propose the suitable leadership framework for Australian banks using a conceptual framework. The findings of this study are expected to allow Australian banks in evaluating their leaders’ role and formulate relevant strategies to ensure successful innovation adoption. It is projected that the findings will be robust for the businesses as the internal and external shareholders working with leaders to enhance organizational performance can befit from the insight provided in this study. Moreover, this study is projected to assist in charting directions for business leaders in the context of effective leadership practices necessary for improving employees’ retention, profitability, and growth which will ultimately contribute to business practices. The findings will help in providing a better understanding of leadership practices required for leaders’ professional growth which may create more job opportunities. The leaders may learn the ethical and sustainable leadership practices to meet the social expectations through compact strategies which may contribute to social change.