Entrepreneurial Charisma: A Key to Employee Identification?

Abstract

Entrepreneurial businesses are an important driver of modern day economies. A firm that adopts a strategy of calculated risks and demonstrates proactiveness and innovation reflects an entrepreneurial orientation (EO). In order to create an entrepreneurial orientation and associated performance outcomes, it is necessary to understand the role of individuals and the interpersonal processes that shape values, norms, and behaviors. Incorporating research from the literature of social psychology, this study examines the effect of individual and organizational variables on employees who work for an entrepreneurial venture. A cross-sectional study of 78 employees of small Canadian businesses empirically demonstrates how an entrepreneurial strategic orientation and a charismatic leadership style encourage employees to identify with the entrepreneurial organization. Empirical results indicate that personality and strategic direction play an important part in creating value for the entrepreneurial firm.