The impact of entrepreneurial leadership and learning orientation on organizational performance of SMEs: The mediating role of innovation capacity (original) (raw)

Organizational Learning, Innovative Performance and the Moderating Effect of Entrepreneurial Orientation among Jordanian SMEs

Background: Technology, knowledge, innovation are the main characteristic of successful organizations in today's economy. Innovative performance as a key asset is fundamental to building the competitive advantage of SMEs. It has also been shown that the innovative performance is a new concept, that firms are aspiring to achieve largely social interactions and technological relationships which allow easier accessing to information, reducing the amount of time and investment required to increase the levels of knowledge by organizational learning processes. Objective: The present study investigates empirically the role of moderating effect of entrepreneurial orientation in relationship between organizational learning and innovative performance among Jordanian SMEs. Results: The results of this study showed that dimensions of organizational learning (information acquisition, and organizational memory) were found positively and significantly related to innovative performance. Unexpectedly, it showed that there is no relationship between information distribution, information interpretation and innovative performance In addition; this study did not support the effect of entrepreneurial orientation that moderate in relationship between organizational learning and innovative performance. Conclusion: organizational learning are good for enhancing innovative performance, which implies that SMEs must do to enhance these four dimensions of organizational learning (information acquisition, information distribution, information interpretation, and organizational memory). In addition, this study did not support the effect of entrepreneurial orientation as moderator in relationship between organizational learning and innovative performance among SMEs in Jordan.

Examining of Innovative Performance Amongst SMEs in Jordan

Journal of Knowledge Management A application and Practice, 2019

The aim of this study is to examine the innovative performance of SMEs in Jordan. The study also investigates the moderating effect of entrepreneurial orientation on the relationship among intellectual capital, organizational learning and innovative performance. Data was gathered using a questionnaire survey. Questionnaires were distributed to a sample of 600 managers/owners of Jordanian SMEs. 325 usable questionnaires were returned. PLS SEM technique was applied to analyse the data. The findings show that intellectual capital (human capital and customer capital dimensions) have a positive and significant effect on innovative performance. Results also showed that organizational learning (information acquisition, information distribution and organizational memory) has positive and significant effect on innovative performance. Finally, the study also found that entrepreneurial orientation (EO) moderates the relationship between customer capital and innovative performance.

LEADERSHIP, ENTREPRENEURIAL ORIENTATION AND PERFORMANCE: THE CASE OF SMES IN MALAYSIA

It is generally accepted that the entrepreneurs, who provide effective leadership, enhance organisational performance and ultimately their success. However, there has been a little empirical evidence to support the relationship between leadership and performance, especially within the Small and Medium Enterprises (SMEs) context in Malaysia. The current study, therefore, intended to examine the relationships among the three organisational components; namely leadership, entrepreneurial orientation (EO) and organisational performance. The study also observed the similarities and differences in the leadership behaviours displayed by entrepreneurs based upon their gender, company size and types of industry. A quantitative survey was conducted with 283 entrepreneurs or managers of SMEs in Malaysia. The results revealed that both transformational and transactional leadership behaviours were significantly related to entrepreneurial orientation and in turn the entrepreneurial orientation was also positively linked to organisational performance (which was measured by profitability and growth). T-Test results also indicated significant differences in leadership behaviours among leaders of company's based on size and type of industry.

Exploring the antecedents of innovation performance: the roles of entrepreneurial orientation, learning orientation and organisational learning

International Journal of Business Excellence, 2018

This paper analyses the effect of entrepreneurial orientation (EO) on learning orientation (LO), the relationship between them and their effect on organisational learning (OL) and innovation performance (IP) in small and medium-sized enterprises (SMEs). A cross-sectional research design, drawing on a questionnaire survey, was employed to collect data from a sample of Iranian SMEs. The results obtained from structural equation modelling analyses revealed that EO positively affects the LO and OL levels in SMEs. In addition, OL was found to be a significant antecedent of innovation performance. These findings have important implications for academies, practitioners, and economic policy makers.

Intellectual Capital, Innovative Performance and the Moderating Effect of Entrepreneurial Orientation among Small and Medium- sized Enterprises in Jordan

The aim of this study investigates empirically the role of moderating effect of entrepreneurial orientation (EO) in relationship between intellectual capital (IC) and innovative performance (IP) among Jordanian small and medium-sized enterprises (SMEs). Data was gathered by using a questionnaire survey. The questionnaire was distributed to a sample of 600 managers/owners from Jordanian SMEs. 325 usable questionnaires were returned. Partial least squares-structural equation modeling technique had been applied to analyses the data. The findings showed that dimensions of IC (human capital and customer capital) were found positively and significantly related to IP. In addition, this study supports the effect of EO that moderate partially in relationship between IC and IP.

Entrepreneurial orientation and SME performance: The mediating role of learning orientation

Economics & Sociology, 2021

This paper aims to address the mediating effects of learning orientation on the relationships between three dimensions (innovativeness, proactiveness, and risk-taking) of entrepreneurial orientation on SMEs' performance in Thailand. Due to competition in a volatile environment, these dimensions of entrepreneurial orientation have been the focus of attention in many strategic management studies. This study is based on a survey, utilizing a sample of 379 SME managers in the manufacturing sector of Thailand. The data collected were analyzed using the partial least square structural equation modeling (PLS-SEM) technique. The results of the proposed model prove that innovativeness, proactiveness, and risk-taking ability of SMEs have a significant positive influence on the learning orientation and business strategy of firms. Further, the results of indirect effects show that learning orientation and business strategy mediates between the positive relationship of dimensions of entrepreneurial orientation and firm performance. The mediating effect of learning orientation and business strategy contributes to the resource-based view (RBV) and provides useful insights to managers regarding policy formation and implementation to improve business performance.

Impact of Strategic Leadership, Entrepreneurial Orientation, and Organizational Innovation on Organizational Performance: Harnessing Data to Understand the Mediating Role of Knowledge Management: A Case Study of SMEs in Pakistan

Asian Bulletin of Big Data Management, Pakistan , 2023

In the current era of competitiveness and digitization SME’s can play an important role in economic development of a country like Pakistan. The aim of this study is to investigate the impact of strategic leadership, Entrepreneurial orientation and organizational innovation on SME’s performance in Pakistan with the mediation role of knowledge management using big data concepts. A self-administered survey questionnaire is used to collect the data from targeted sample of 170 SME’s Managers and owners. Data is collected through convenient sampling technique and PLS (4.0) (SME) is used for analysis of data. The findings of the study reveal that there is a significant relationship between strategic leadership, Entrepreneurial orientation, organizational innovation and organizational performance. Moreover, results of the current study endorsed that Knowledge management has significant relationship with organizational performance. Statistical values showed that knowledge management fully mediate the relationship between, strategic leadership, Entrepreneurial orientation, organizational innovation and SME, s performance. Finally, the impact of big data management along with knowledge management implementation is a unique contribution of current study to test this combination of variables in the context of SME’s sector of Pakistan. Furthermore, current study contributes in the conceptualization of big data and knowledge management framework in performance enhancement of SME, s. Current study will help the policy makers to develop the knowledge based effective policies for SMEs of Pakistan. Conclusively, current study is limited to Pakistan in future researchers may use this framework to other developing countries with the variation of sample size and industrial sector.

Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance

Administrative Sciences

This research seeks to investigate the relationship between entrepreneurial orientation dimensions (behavioral dimension EOBD and attitudinal dimension EOAD) and firm performance (FP) through a sequential mediation model of innovation capability (IC) and firm resilience capability (FRC) in a specific context. Sample data for this study were collected using a questionnaire survey from 225 randomly selected SMEs in Saudi Arabia and analyzed using structural equation modeling. The results revealed that there are significant relationships between EO dimensions and IC. No direct relationships were found between EO dimensions and FRC or between EOAD and FP. Therefore, IC plays a mediating role in the relationships between EO dimensions and FRC. In addition, FRC does not play a mediating role in the relationships between EO dimensions and FP. On the contrary, it plays a partial mediation between IC and FP. To our knowledge, little research has investigated simultaneously the effects of EO,...

Entrepreneurial leadership effect on SME’s performance in Malaysia

International Journal of Health Sciences (IJHS), 2022

In the present complicated and turbulent corporate climate, several researchers have proposed that the expanding ineffectiveness of more conventional methods to strategy needs a more entrepreneurial approach. A more entrepreneurial approach, such as entrepreneurial leadership, has been recommended by several people. Because SMEs are regarded as the nation's economic backbone, it is critical to comprehend how entrepreneurial leadership may impact organizational performance. The goal of this study is to learn more about the impact of entrepreneurial leadership (EL) on Malaysian small businesses. We looked at the performance of SMEs in Malaysia to investigate whether the characteristics of entrepreneurial leadership, entrepreneurial orientation, and technical innovation competency influenced the results. Entrepreneurial orientation, team creativity, dynamic skills, and competitive advantage all play a role in 10759 the relationship between entrepreneurial leadership and SMEs' success in this study. Based on consistent PLS-SEM analysis, data from 210 Malaysian small and medium-sized businesses (SMEs) was collected and validated. Entrepreneurial leadership has a substantial influence on entrepreneurial attitude and team creativity, as well as dynamic capabilities and competitive advantages. Thus, we can provide practical recommendations for promoting and managing entrepreneurial innovation. Researchers developed a theoretical model that combines entrepreneurial leadership, entrepreneurial attitude, and SME success (SMEs). Research shows that entrepreneurial leadership has a positive influence on the entrepreneurial attitude of employees. Entrepreneurial leadership that promotes a more entrepreneurial attitude boosts a company's motivation for innovation, risk-taking, and reactiveness (Engelen et al., 2015). Technological Innovation Capabilities seem to have little direct influence on the success of small businesses, but they have a positive effect on entrepreneurial motivation. From these findings, Malaysian small and medium-sized enterprises may derive various practical applications. Entrepreneurial leadership is critical to a company's capacity to increase efficiency and profitability.