Discussion
This study was undertaken with the aim to understand how different leadership styles affect open service innovation outcomes. The first finding of this study shows that a paternalistic leadership style is positively related to open service innovation. Extant research suggests that paternalistic leaders facilitate the process of adaptation and knowledge sharing in a secure working environment (Farh and Cheng, 2000). As an important attribute of open service innovation, a secure and supportive environment developed by a paternalistic leader can help in creating innovation (Chesbrough, 2011; Saputri and Mulyaningsih, 2016). In line with this, Tian and Sanchez (2017) suggested that a paternalistic leadership style might support the innovative and knowledge sharing behavior of the employees. Fu et al. (2013) also confirmed the influential role of authoritarian and benevolence characteristics of paternalistic leadership on innovative practices. The second finding confirmed the positive role of a democratic leadership style on open service innovation. This is logical since organizations require a free flow of knowledge from inside and outside of the organization to succeed in open service innovation (Chesbrough, 2003b). It is argued that democratic leaders encourage employee participation in decision-making process which creates a conducive working environment for knowledge exploration and exploitation.