Servant Leadership and Entrepreneurial Performance of SME’s: Testing the Effects of Pro-Social Motivation and Duty Orientation

Abstract

The purpose of this study is to investigate the impact of servant leadership on entrepreneurial performance with the mediating role of duty orientation and moderating role of pro-social motivation. Small and medium-sized firms (SMEs) are essential for the growth of the global economy because they encourage innovation and employment creation. Modern leadership models such as servant leadership put the needs of their followers first, inspiring them and promoting organizational success. In today's fast-paced company climate, entrepreneurial performance is essential. Servant leadership inspires people and promotes an innovative and trusting culture. Duty orientation encourages dedication and responsibility, which strengthens the relationship between servant leadership and entrepreneurial performance. Entrepreneurial activity is encouraged by pro-social motivation, which is driven by a sense of social duty. This strengthens the link between entrepreneurial success and servant leadership. This study used cross-sectional data from 120 employers and employees from small and medium enterprises (SMEs) to explore the impact of servant leadership on entrepreneurial performance with the mediating role of duty orientation and moderating role of pro-social motivation. The data collected were analyzed using SEM, in Smartpls4. All hypotheses proposed in this study were accepted. Findings proved that servant leadership has a significant positive influence on entrepreneurial performance. Findings also proved that duty orientation significantly mediates the relationship between servant leadership and Entrepreneurial performance. Findings suggest that Pro-social motivation moderates the relationship between servant leadership and entrepreneurial performance. Companies should focus and foster servant leadership within their leadership ranks, putting a strong emphasis on empathy and a supportive workplace environment, in order to increase organizational success. All levels of leadership can benefit from these traits being ingrained through leadership development and training programs. Additionally, encouraging a sense of responsibility in workers through training initiatives that place a strong emphasis on accountability can help businesses perform better. Pro-social motivation can further connect with servant leadership concepts and assist entrepreneurial activities by being acknowledged and valued in hiring and performance assessments.