The Impact of Leadership Style on New Product Development Success in Automobile Industrial Companies in the Southern Region of India: An Empirical Study

Abstract

Introduction: The success of new product development (NPD) in the automobile industry is influenced by various factors, with leadership style playing a critical role. Leadership impacts team dynamics, stakeholder engagement, and overall project execution. This study examines the relationship between leadership styles and NPD success, focusing on four prominent automobile manufacturing companies in Southern India.

Objectives: To analyze the impact of different leadership styles on NPD success in the automobile industry. To evaluate how leadership styles contribute to team coordination, stakeholder management, and project performance. To identify the most effective leadership style(s) in achieving NPD success within private automobile firms in Southern India.

Methods: This empirical study employs a structured survey to collect data from professionals engaged in NPD processes across selected companies. Structural Equation Modeling (SEM) is utilized to validate hypotheses and test the robustness of the proposed model. The analysis is conducted using JAMOVI 2.6.23 software, ensuring statistical rigor.

Results: The findings reveal that leadership styles significantly influence NPD success, with transformational leadership showing the strongest positive impact. Leaders who foster team consistency, engage stakeholders effectively, and manage dynamic relationships contribute to higher project success rates. Transactional leadership also plays a role, particularly in structured environments, while laissez-faire leadership has a minimal or negative impact on NPD performance.

Conclusions: Leadership style is a strategic asset that enhances collaboration, team commitment, and project outcomes. Organizations that nurture leadership capabilities aligned with regional business dynamics can improve their NPD success rates. This study provides insights for both scholars and practitioners, emphasizing the need for leadership development programs tailored to the unique challenges of the automobile industry in Southern India.