Role of Transformational Leadership and Social Entrepreneurship in Achieving Enterprise Performance: Taking Creativity as a Mediator

Abstract

Purpose: In the recent business context, the pivotal drivers of organizational success are increasingly identified as transformational leadership and social entrepreneurship. These dynamic forces have emerged as crucial predictors, shaping the trajectory of enterprise performance. The present study proposed to explore the role of transformational leadership and social entrepreneurship in achieving enterprise performance through creativity among employees of small and medium-sized enterprises (SMEs) in Egypt. Design/Methodology/ Approach: We applied quantitative methods to detect this problem by collecting data from the employees of Small and Medium-sized Enterprises (SMEs) in Egypt. Finally, we utilized 294 samples to get the results. Findings: Applying the analysis of moment structures (AMOS) version 26.0, the results show a positive and significant impact of transformational leadership, social entrepreneurship and creativity on enterprise performance. The mediating path leads to a positive mediating impact of creativity in developing the connection between transformational leadership and enterprise performance. On the other hand, creativity did not mediate the relationship between social entrepreneurship and enterprise performance. Research, practical and social implications: The research outcomes serve as a strategic compass for policymakers and planners, offering actionable insights to elevate enterprise performance through the strategic integration of transformational leadership and social entrepreneurship. Furthermore, the study provides valuable guidance for organizations aspiring to cultivate a culture of innovation and creativity, fostering the essential elements for sustained success in today's dynamic business environment. Originality/ value: This study addresses the gaps in the empirical evaluation of enterprise performance through transformational leadership, social entrepreneurship and creativity among Egyptian employees of Egyptian SMEs.