Entrepreneurial leadership effect on SME’s performance in Malaysia

Abstract

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 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).