Entrepreneurial leadership and organizational innovation: The role of mediating analysis

Abstract

This study explores entrepreneurial leadership's influence on organizational innovation as mediated by high-performance work systems and knowledge sharing. Our respondents were 280 employees of small and medium exporting industries selected using the Krejcie and Morgan formulations. Data were analyzed using the Smart PLS 3.2.9 software. The findings indicate that entrepreneurial leadership positively affects high-performance work systems, knowledge sharing, and organizational innovation. In addition, high-performance work systems and knowledge-sharing mediate the relationships. This study offers insights into the leadership literature from an entrepreneurial perspective and emphasizes the favorable effects on HRM practices and knowledge exchange, which ultimately contribute to organizational innovation. Knowledge, particularly knowledge sharing, is critical in explaining SMIs’ capacity to synchronize their resources. From a practical standpoint, SMIs, particularly those prioritizing exports, must perceive organizational innovation as a tangible measure to sustain their competitiveness in the global market. Moreover, SMIs must facilitate information sharing among all parties engaged in business activities. SMIs may acquire new information and be able to resolve any technical issues that may arise due to knowledge sharing.