Rethinking survival, renewal, and growth strategies of SMEs in Bangladesh: the role of spiritual leadership in crisis situation

Abstract

Purpose For Bangladeshi small and medium enterprises (SMEs), the COVID-19 economic shock is remarkable in both its complexity and intensity. SMEs need systemic inspiration to solve the crisis, aligned with a moral and authentic approach that serves both the leader and the follower’s interests. This study aims to conceptualize the innovation-focused success method of SMEs before and after the pandemic to manage the crisis by establishing spiritual leadership based on Islamic perspectives. Design/methodology/approach To discuss the impact of spiritual leadership on innovation-focused SME performance configuration through the lens of a crisis, a comprehensive literature study has been carried out in which over 360 articles are read and reviewed by the authors. It has also established the reliability and validity of literature analysis. Also, a qualitative investigation has been used to support the direction of the study. Findings For a subsequent process of scientific deployment and evaluation of its execution, a new applied strategic innovation-focused SME success configuration through spiritual leadership development is made available. The primary value of this paradigm is the potential to calculate and treat the aspects of spiritual leadership obtained from Islamic ideas. Research limitations/implications Prior analytical or empirical attempts from multiple viewpoints are subsequently needed to inquire about the proposed conceptualization. Practical implications Among the realistic consequences of this analysis is that while a number of leadership paradigms have been embraced by a broad body of leadership studies, the findings indicate that this paper should pay heed to the influential spiritual style of leadership, taking into account Islamic perspectives on the context of crisis. Therefore, Bangladeshi SMEs need to develop and run leadership training programs focused on the Islamic viewpoint of spirituality to encourage the actions of leaders during and after crises. Social implications The legal and moral values of the society would ultimately be upgraded from this conceptualization. Moreover, less corruption in corporate activities would improve the economic prosperity of a nation. It would also contribute to the cross-cultural portrayal of the positive picture of Islam. Originality/value This holistic conceptualization describes the mediating role of strategic innovation practices based on theoretical foundations, which have seldom been done in previous research, between the Islamic model of spiritual leadership and SME success during and after a crisis.

The Influence of Innovation Practices on the Productivity and Survival of Micro-Business Restaurants During Post-Pandemic Covid-19

“…A study in Bangladesh stated that the critical strategic solution for an organization to overcome the crisis is through the efforts of strategic innovation that came from the leadership of upper management (Islam et al, 2021). The study has analyzed and reviewed over 360 articles and conducted semi-structured interviews session with the SME director and manager as the measurement support.…”

“…Therefore, innovation is a critical mechanism that will provide any restaurant with the needed competitive advantage in facing the uncertainty of business scenarios that occur in this post-pandemic (Islam et al, 2021). If innovation cannot be practiced, as Ming et al (2018) claimed, this problem will expand and create barriers to enhancing the speed, accuracy, and efficiency of the products which can be expressed with the help of advanced technologies and expertise of a certain field.…”

The Effect of Spiritual Leadership and Psychological Empowerment on Employee Performance

“…Then Spiritual Leadership has a positive impact on employee behaviour innovation. Uncertainty avoidance and creative role identity not only play their respective mediating role but also play a mediating chain role in the Spiritual Leadership process that influences innovative employee behaviour (Islam et al, 2021;Usman et al, 2021). This statement is based on previous research conducted by Jie Yang, Mingchao Chang, Zhihong Chen, Lulu Zhou and Jiangjiang Zhang (2021) in research titled "Mediation Effects of Spiritual Leadership on Innovative Behavior Employees".…”

The Impact of Basel Convention (II) Norms in Capital Adequacy of Jordanian Commercial Banks on the Financial Performance

“…Banks have recently witnessed a great development in terms of innovation and discovery of new financial tools that meet the increasing needs of customers, but this development has been accompanied by multiple financial crises, which led to a decline in the performance of many banks and even went beyond that to the bankruptcy of some banks as a result of these crises, which requires a system of control [3]. And to protect from these financial crises in order to preserve its money and the money of its depositors, the bank must protect depositors' money because of its great importance to every supervisory and supervisory authority over these banks [4].…”