Entrepreneurial leadership and business performance: Effect of organizational innovation and environmental dynamism
South Asian Journal of Business Studies
ISSN: 2398-628X
Article publication date: 1 October 2019
Issue publication date: 4 November 2019
Abstract
Purpose
The purpose of this paper is to examine effects of entrepreneurial leadership (EL) and organizational innovation (OI) on business performance (BP) of small and medium enterprises (SMEs) as well as to determine whether environmental dynamism (ED) moderates the mediating effect of OI in the EL‒BP relationship.
Design/methodology/approach
The study was carried out on the basis of questionnaire survey among 243 SME owners of Pokhara valley of Nepal. Hierarchical multiple regression and other different PROCESS models were considered to examine direct, mediation, moderation and moderated mediation relationships.
Findings
The findings suggest a significant positive effect of EL on OI and BP and significant mediating role of OI in EL‒BP relationship. But contrary to the prediction, the results indicate that the moderation and moderated mediation relationship are weaker under a dynamic environment than a stable environment.
Research limitations/implications
As research reveals, ED moderates the studied model differently, and it raises questions on applicability of western theories, scales and their relationship in the South Asian context. Besides this, it has few limitations, which also present opportunities for future research.
Practical implications
The findings of this research will be significant to entrepreneurs, educators and policymakers for better understanding about study variables, to use as consulting options as well as to prepare effective policies for entrepreneurship development.
Originality/value
This study is perhaps the first study that examines the complex moderated mediation model in the context of minimal work on EL‒BP relationship and facilitates more sophisticated understanding about their relationships as well as shows variables’ and model’s generalizability in the eastern context.
Keywords
Acknowledgements
This paper forms part of a special section “Creativity, innovation and entrepreneurship (CIE) in South Asia”; guest edited by Vishal K. Gupta and Murad Mithani.
Citation
Paudel, S. (2019), "Entrepreneurial leadership and business performance: Effect of organizational innovation and environmental dynamism", South Asian Journal of Business Studies, Vol. 8 No. 3, pp. 348-369. https://doi.org/10.1108/SAJBS-11-2018-0136
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited