Abstract

The main objective of this research is to investigate the nexus between entrepreneurial leadership and product innovation performance. In addition, the mediating mechanism of absorptive capacity, intra-firm networks, and design thinking through which entrepreneurial leaders influence product innovation performanceis also studied. The researcher contacted three hundred (300) plus firms; 157 firms showed a willingness to participate, and 96 firms provided the data with a response rate of 61.15%. Out of those 96 firms, the data from 71 firms were used for the final analysis, yielding an effective response rate of 45.22%. Only middle and top-level employees from the marketing and research & development departments from Pakistani firms were selected as respondents because these two departments are directly related to product innovation performance. To test the hypothesis, the Smart PLS-SEM technique wasused. The empirical analysis revealed that entrepreneurial leadership impacted product innovation performance through the mediating mechanism of design thinking, intra-firm networks, and absorptive capacity. The current research contributes to entrepreneurial leadership theory by proposing and empirically testing how entrepreneurial leaders affect product innovation performance.

Highlights

  • IntroductionThe purpose of this paper is to investigate the impact of the entrepreneurial leadership functional mechanism on the product innovation performance of firms

  • The PLS-SEM analysis was performed in a two-step process following the guidelines of Hair [57]; initially, the measurement model was assessed for reliability and validity as per the prescribed criteria

  • The numerical data analysis reveals that entrepreneurial leadership has a relevant and significant direct relationship with intra-firm networks, design thinking, Design thinking (DT), and absorptive capacity

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Summary

Introduction

The purpose of this paper is to investigate the impact of the entrepreneurial leadership functional mechanism on the product innovation performance of firms. Two research questions were formed: What is the connection between entrepreneurial leadership and product innovation performance? How doesthe mechanism of design thinking, intra-firm networks, and absorptive capacity help entrepreneurial leaders to improve and influence product innovation performance?. This study, studied product innovation performance from the perspective of entrepreneurial leadership and its mechanism, which is comprised of the intra-firm networks, design thinking, and absorptive capacity. The role of entrepreneurship and leadership is studied by many scholars in relation to product innovation performance and the creation of an ecosystem for innovation.

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