New venture top management team's shared leadership and its indirect effect on strategic performance: findings from SEM and fsQCA

Abstract

PurposeThe purpose of this study is to empirically explore the relationship between a new venture top management team's (NVTMT’s) shared leadership and strategic performance in opportunity recognition and entrepreneurial bricolage by drawing on the upper echelons theory.Design/methodology/approachData were collected from 344 new manufacturing ventures located in Eastern China. The hypotheses were tested using structural equation modelling (SEM) through the AMOS 23.0 software package. The confluence of the contextual factors of the new venture is examined by a fuzzy-set qualitative comparative analysis (fsQCA).FindingsThe results indicate that NVTMT shared leadership has an indirect and positive effect on strategic performance through opportunity recognition, especially in a highly uncertain environment, while the mediating effect of entrepreneurial bricolage is not significant. Furthermore, although the SEM results show that the impact of NVTMT shared leadership on entrepreneurial bricolage is negative, the fsQCA shows that NVTMT shared leadership can significantly and positively affect entrepreneurial bricolage in an environment with high uncertainty, ultimately enhancing strategic performance.Originality/valueThis study contributes to the shared leadership literature by proposing a model on how shared leadership shapes the strategic performance of new ventures via opportunity recognition and entrepreneurial bricolage. The findings not only enrich relevant research on the upper echelons theory, but also help in understanding the patterns of contextual conditions that facilitate the value-adding properties of NVTMT shared leadership.

Entrepreneurial Leadership and Entrepreneurial Success: The Mediating Role of Entrepreneurial Opportunity Recognition and Innovation Capability

“…EOR is the advantage of satisfying a market need, interest, or desire using resource combination in a novel way to provide superior value [36]. EOR is a vital decision-making stage that is expected to increase entrepreneurs' capacity to capitalize on opportunities by promoting a flow of resources and social capital [37]. Therefore, the inclusion of EOR in the link between the EL and ES of micro-businesses is critical to developing the current model and capturing a holistic view.…”

“…Entrepreneurship research has demonstrated the beneficial impact of leadership on the identification and exploitation of chances for new businesses. [37]. Academics have consistently recommended EL as the most effective leadership style for dealing with challenging and complex environments as well as promoting and enhancing EOR in all businesses, including MSMEs [21,[24][25][26].…”

“…Furthermore, ref. [37] argued that leadership enables new businesses by gathering useful data, which serve as the foundation for identifying particular business opportunities. Based on the above argument, we proposed the following: H2.…”

“…As entrepreneurship becomes more widely recognized as the path to performance and market renewal, opportunity recognition may be needed to develop the connection between EL and ES [14]. Earlier empirical investigations were carried out to clarify the underlying mechanisms linking EL to ES or performance, and as such, many variables were used as mediators; for instance, tacit knowledge sharing and job embeddedness [23], knowledge management processes [14], job insecurity [60], entrepreneurial bricolage [37], and entrepreneurial orientation [8]. Ref.…”

Strategic Performance Management Based on Cigarette Production and Operation Big Data

“…Literature [13] used a combination of multiple data to investigate the methods of composing high-performance competencies, challenged the multidimensional competencies of managers under the perspective of performance, and discussed the effectiveness of the strategic management model. Literature [14] made a hypothesis on the relationship between shared leadership and strategic performance based on team theory, which was verified using structural equation modeling, and the study showed that shared leadership contributes to strategic performance in an entrepreneurial environment. Literature [15] applied strategic performance metrics to the strategic decision-making process of enterprises, investigated the impact of SPM methodology on the internal performance of enterprises, and verified the impact based on regression analysis and correlation analysis, which provided a foundation for the application of SPM in the strategic decision-making of enterprises.…”