The master's thesis explores the role of leadership in fostering employee innovation, with a
focus on understanding how leaders create conditions for innovative behavior in practice. The
theoretical part provides an overview of key leadership theories, including trait, behavioral,
contingency, as well as contemporary models such as transformational, transactional, and
charismatic leadership. Particular emphasis is placed on the relationship between leadership
style and the development of an innovative work environment. The thesis also examines
individual, organizational, and environmental factors influencing innovativeness, along with
the innovation process itself—from idea generation to implementation. The empirical part is
based on a case study of a selected company, using a combination of internal data analysis and
semi-structured interviews with managers. The findings reveal that leadership support, the
creation of a psychologically safe environment, and the implementation of systems that
recognize and reward innovative initiatives are essential for fostering employee innovation. The
thesis contributes to a deeper understanding of leadership challenges in practice and offers
recommendations for leadership practices that enhance organizational innovation capacity.
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