Fostering strategic entrepreneurship of SMEs: the role of organisational change forces

Abstract

Purpose

Strategic entrepreneurship (SE) exemplifies the interconnection of strategic management and entrepreneurship, inferring that organisations could yield tremendous wealth by synchronously pursuing advantage- and opportunity-seeking behaviour. This study examines how small and medium-sized enterprises (SMEs) thrive SE by leveraging organisational change forces.

Design/methodology/approach

This study uses a covariance-based structural equation model (CB-SEM) based on 477 key role employees in 95 import and export SMEs in Vietnam.

Findings

SE in SMEs requires organisational change forces, namely leadership, employee engagement and buffering foundation of adaptive culture (AC). In particular, transformational leadership (TL) is beneficial and significantly influences SE behaviour via the mediating role of organisational change commitment. In addition, the adaptable culture of SMEs can serve as a buffer, allowing TL concepts to permeate and transfer to administrative bodies, thereby encouraging SE.

Practical implications

This paper describes why and how SME leaders can make decisions and manage SE to generate a comparative edge. Leaders must understand and assess organisational change forces that play a crucial role in thriving SE, which must pay considerable attention to employees' commitment to change and create an AC.

Originality/value

The findings indicate that achieving SE in SMEs requires a blend of core organisational change forces, such as leadership, cohesive employees and an environment that facilitates adaptation.

Citation

Luu, T.D. (2023), "Fostering strategic entrepreneurship of SMEs: the role of organisational change forces", Management Decision, Vol. 61 No. 3, pp. 695-719. https://doi.org/10.1108/MD-08-2021-1024