Entrepreneurial leadership and performance of small and medium sized enterprises: a structural equation modelling approach

Abubakar, Lawan Shamsu; Zainol, Fakhrul Anwar; Daud, Wan Norhayate Binti Wan

doi:10.1504/jibed.2018.091220

Cited by 8 publications

(10 citation statements)

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“…52 Studies by Renko, El Tarabishy, et al 25 and Gupta et al 41 offered a comprehensive EL construct, arguing that this leadership influences and directs the synergetic performance of group members toward accomplishing those organizational goals that relate to recognizing and exploiting contingencies, which ultimately influence the success of EL. Drawing from the notion of "cast enactment" in EL theory proposed by Gupta et al 41 large numbers of the studies [53][54][55][56][57] have suggested EL as the most influential factor for innovative behavior, and highlighted its importance in stimulating and fostering innovation in highly dynamic and competitive business environments. So, it is critical to understand the mechanisms through which EL influences employees' innovative work behavior, and stimulates innovation performance of the organization.…”

Section: Introductionmentioning

confidence: 99%

<p>Impact of Entrepreneurial Leadership on Innovative Work Behavior: Examining Mediation and Moderation Mechanisms</p>

Cai¹,

Makhdoom²,

Asim³

2020

PRBM

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Purpose: Based on social cognitive theory, the present study aimed to explore the impact of entrepreneurial leadership on employees' innovative work behavior through the moderating path of entrepreneurial self-efficacy in technology-based SMEs. The study also explains the mechanism through which a firm's innovative environment mediates the relationship between entrepreneurial leadership and employees' innovative work behavior. Methods: To pursue the objectives, this study has used data from a sample of 350 supervisor-subordinate dyads working in cross sectional small and medium enterprises (SMEs) operating in the Jiangsu province of China. Based on social cognitive theory and specific continuum of self-efficacy theory, a conceptual model was developed and the hypotheses were tested with the help of SPSS 20. Findings: Empirical findings recommend a significant positive effect of entrepreneurial leadership on employees' innovative work behavior. The study suggested that firm's innovative environment mediates the relationship between entrepreneurial leadership and the employees' innovative behavior. The results also confirmed that entrepreneurial self-efficacy exerts a positive moderating effect on the association of entrepreneurial leadership and employees' innovative behavior. Conclusion: Findings of the present research work have several implications for the management and policymakers of high-tech SMEs who want to augment their employees' innovative behavior in order to compete in a highly competitive and challenging business environment. To the best of authors' knowledge, this work is the first attempt that presents an empirically supported comprehensive model for the development of employees' innovative behavior within entrepreneurial-based high-tech SMEs. It contributes to literature by examining the mediation and moderation process for the development of employees' innovative behavior.

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Section: Introductionmentioning

confidence: 99%

<p>Impact of Entrepreneurial Leadership on Innovative Work Behavior: Examining Mediation and Moderation Mechanisms</p>

Cai¹,

Makhdoom²,

Asim³

2020

PRBM

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“…This finding aligns with the previous research findings. Empirical studies demonstrated the direct relationship between the two variables (e.g., Abubakar et al, 2018;Al Mamun et al, 2018;Sarabi et al, 2020). Al Mamun et al (2018) investigated the relationship between entrepreneurial leadership, performance, and sustainability of micro-enterprises in Malaysia.…”

Section: Discussion Of the Findingsmentioning

confidence: 99%

“…The literature review scrutinises various research types, including meta-analysis, empirical, and conceptual approaches to understand how entrepreneurial leadership style is linked with organisational performance (Bagheri & Harrison, 2020). This research, particularly empirical studies, has shown that the two variables are directly related (Abubakar et al, 2018;Imran & Aldaas, 2020;Vidal et al, 2019).…”

Section: Entrepreneurial Leadership and Organisational Performancementioning

confidence: 99%

“…Entrepreneurial leadership is critical in ensuring SMEs' success and survival (Abubakar et al, 2018;Imran & Aldaas, 2020;Vidal et al, 2019). However, solely examining the direct consequence of entrepreneurial leadership on performance is insufficient (Al Mamun et al, 2018;Huang et al, 2014;Paudel, 2019;Ximenes et al, 2019).…”

Section: H4mentioning

confidence: 99%

“…Performance is not only influenced by the entrepreneurial leaders' qualities and actions (Abubakar et al, 2018;Renko et al, 2015) or environmental dynamism (Ensley et al, 2006;Huang et al, 2014;Paudel, 2019), but also by organisational culture and characteristics (Aboramadan et al, 2019;Buccieri et al, 2019). Thus, learning orientation may significantly enhance organisational performance (Amin, 2015;Lafuente et al, 2019;Tajeddini, 2016).…”

Section: H4mentioning

confidence: 99%

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Entrepreneurial Leadership and Organisational Performance of SMEs in Kuwait: The Intermediate Mechanisms of Innovation Management and Learning Orientation

Sawaean

Ali

Alenezi

2021

IJIKM

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Aim/Purpose: This study aimed to investigate the impact of innovation management and learning orientation as the mechanisms playing the role of an intermediate relationship between entrepreneurial leadership and organisational performance of small and medium enterprises (SMEs) in Kuwait. Background: SMEs are currently among the principal economic instruments in most industrialised and developing countries. The contribution of SMEs can be viewed from various perspectives primarily related to the crucial role they play in developing entrepreneurial activities, employment generation, and improving innovativeness. Developing countries, including Kuwait and other countries, in the Gulf Cooperation Council (GCC), have recognised the key role played by SMEs as a strong pillar of growth. Consequently, many governments have formulated policies and programmes to facilitate the growth and success of SMEs. Unfortunately, the organisational performance of SMEs in developing countries, particularly in Kuwait, remains below expectations. The lagged growth could be due to a lack of good managerial practices and increasing competition that negatively impact their performance. Numerous researchers discovered the positive effect of entrepreneurial leadership on SMEs’ performance. However, a lack of clarity remains regarding the direct impact of entrepreneurial leadership on SMEs’ performance, especially in developing countries. Therefore, the nexus between entrepreneurial leadership and organisational performance is still indecisive and requires further studies. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather data within a specific period. The data were collected by distributing a survey questionnaire to Kuwaiti SMEs’ owners and Chief Executive Officers (CEOs) via online and on-hand instruments. A total of 384 useable questionnaires were obtained. Moreover, the partial least square-structural equation modelling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: The current study contributed to the existing literature by developing a moderated mediation model integrating entrepreneurial leadership, innovation management, and learning orientation. The study also investigated their effect on the organisational performance of SMEs. The study findings also bridged the existing significant literature gap regarding the role of these variables on SMEs’ performance in developing countries, particularly in Kuwait, due to the dearth of studies linking these variables in this context. Furthermore, this study empirically confirmed the significant effect of innovation management and learning orientation as intermediate variables in strengthening the relationship between entrepreneurial leadership and organisational performance in the settings of Kuwait SMEs, which has not been verified previously. Findings: The study findings showed the beneficial and significant impact of entrepreneurial leadership and innovation management on SME’s organisational performance. The relationship between entrepreneurial leadership and SMEs’ organisational performance is fundamentally mediated by innovation management and moderated by learning orientation. Recommendations for Practitioners: The present study provides valuable insights and information regarding the factors considered by the government, policymakers, SMEs’ stakeholders, and other authorities in the effort to increase the organisational performance level and facilitate the growth of SMEs in Kuwait. SMEs’ owners or CEOs should improve their awareness and knowledge of the importance of entrepreneurial leadership, innovation management, and learning orientation. These variables will have beneficial effects on the performance and assets to achieve success and sustainability if adopted and managed systematically. This study also recommends that SMEs’ entrepreneurs and top management should facilitate supportive culture by creating and maintaining an organisational climate and structure that encourages learning behaviour and innovation mindset among individuals. The initiative will motivate them towards acquiring, sharing, and utilising knowledge and increasing their ability to manage innovation systemically in all production processes to adapt to new technologies, practices, methods, and different circumstances. Recommendation for Researchers: The study findings highlighted the mediating effect of innovation management on the relationship between entrepreneurial leadership (the independent variable) and SMEs’ organisational performance (the dependent variable) and the moderating effect of learning orientation in the same nexus. These relationships were not extensively addressed in SMEs of developing countries and require further validation. Impact on Society: This study aims to influence the management strategies and practices adopted by entrepreneurs and policymakers who work in SMEs in developing countries. The effect will be reflected in the development of their firms and the national economy in general. Future Research: Future research should investigate the conceptual research framework against the backdrop of other developing economies and in other business settings to generalise the results. Future investigation should seek to establish the effect of entrepreneurial leadership style on other mechanisms, such as knowledge management processes, which could function with entrepreneurial leadership to improve SMEs’ performance efficiently. In addition, future studies may include middle and lower-level managers and employees, leading to more positive outcomes.

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The dynamic relationship of knowledge management processes and project success: modeling the mediating role of knowledge worker satisfaction

Shahzadi

Sahibzada

et al. 2021

BPMJ

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PurposeConstructed upon a knowledge-based view, the purpose of this paper aims to empirically examine the entrepreneurial leadership impact as knowledge management enabler on knowledge management processes and knowledge management processes on project success. The study further ascertains the mediating role of knowledge worker satisfaction among knowledge management processes and project success.Design/methodology/approachUsing the data collected from 302 project workers from the software industry, China. The research used structural equation modeling (SEM) to analyze the hypothesis relationships using smart-PLS 3.2.9.FindingsThe outcome of the study reveals that entrepreneurial leadership has a substantial significant impact on knowledge management processes, and knowledge management processes influence project success via knowledge worker satisfaction as a mediator both directly and indirectly. Moreover, the study found partial mediation of knowledge worker satisfaction between knowledge management processes and project success.Practical implicationsThe current research identifies that entrepreneurial leadership may play a role in fostering knowledge management processes in project-based organizations (e.g. software industry) that can use the knowledge management processes to increase their chances of project success. More broadly, the current study contributes to the entrepreneurial leadership, knowledge management processes, knowledge worker satisfaction and project success existing literature and strengthens the relationship and suggest that how project manager's value knowledge worker satisfaction and help organizations gain competitive advantage and project success.Originality/valueAlthough there is an increased significance of knowledge management in the software industry, there is a lack of research that examines the enabling factors and outcomes of knowledge management practices. The present study is one of the first studies to ascertain the relationship of entrepreneurial leadership, knowledge management processes, knowledge worker satisfaction and project success. This is one of the initial researches that not only empirically examines the interrelationships among these variables but also enlighten insights into the current literature by instantaneous investigation of the mediating role of knowledge worker satisfaction.

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Entrepreneurial leadership and performance of small and medium sized enterprises: a structural equation modelling approach

Cited by 8 publications

References 0 publications

<p>Impact of Entrepreneurial Leadership on Innovative Work Behavior: Examining Mediation and Moderation Mechanisms</p>

<p>Impact of Entrepreneurial Leadership on Innovative Work Behavior: Examining Mediation and Moderation Mechanisms</p>

Entrepreneurial Leadership and Organisational Performance of SMEs in Kuwait: The Intermediate Mechanisms of Innovation Management and Learning Orientation

The dynamic relationship of knowledge management processes and project success: modeling the mediating role of knowledge worker satisfaction

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