SummaryThe existing analytical average bit error rate (ABER) expression of conventional generalised spatial modulation (CGSM) does not agree well with the Monte Carlo simulation results in the low signal‐to‐noise ratio (SNR) region. Hence, the first contribution of this paper is to derive a new and easy way to evaluate analytical ABER expression that improves the validation of the simulation results at low SNRs. Secondly, a novel system termed CGSM with enhanced spectral efficiency (CGSM‐ESE) is presented. This system is realised by applying a rotation angle to one of the two active transmit antennas. As a result, the overall spectral efficiency is increased by 1 bit/s/Hz when compared with the equivalent CGSM system. In order to validate the simulation results of CGSM‐ESE, the third contribution is to derive an analytical ABER expression. Finally, to improve the ABER performance of CGSM‐ESE, three link adaptation algorithms are developed. By assuming full knowledge of the channel at the receiver, the proposed algorithms select a subset of channel gain vector (CGV) pairs based on the Euclidean distance between all CGV pairs, CGV splitting, CGV amplitudes, or a combination of these.