Catalysts of change: leadership's role in fueling intrapreneurship and innovation – insights from Pakistani start-ups case studies

Abstract

This study investigates how leadership shapes intrapreneurship and innovation in Pakistani start-ups. Drawing on upper echelons theory (UET), it explores how founders' values and leadership practices appear to shape employee-driven innovation in a resource-constrained and culturally distinctive context. A qualitative multiple-case study was conducted across ten start-ups operating in diverse industries. Data were collected through 30 semi-structured interviews with founders and employees and analyzed using Braun and Clarke's thematic analysis, supported by NVivo. Four leadership behaviors emerged as key enablers of intrapreneurship and innovation: (1) benevolent paternalism that cultivates trust and psychological safety, (2) symbolic reduction of hierarchy through open communication and empowerment, (3) a collective orientation that frames innovation as a shared mission and (4) a frugal innovation mindset that reframes resource constraints as opportunities. These practices shape organizational conditions, including psychological safety, voice legitimacy, collective identity, and resource reinterpretation, thereby encouraging employees to initiate and develop intrapreneurial ideas despite contextual constraints. The findings offer actionable insights for start-up founders, incubators, and policymakers seeking to strengthen entrepreneurial ecosystems in emerging economies by fostering leadership practices that promote trust, empowerment and resourceful innovation. This study extends UET to early-stage ventures in an emerging economy, demonstrating how culturally embedded leadership practices translate founder values into employee intrapreneurial behavior and innovation under scarcity. By linking leadership behaviors to organizational conditions that enable intrapreneurship, the study contributes to leadership and innovation research in resource-constrained contexts.