The role of entrepreneurial leadership in advancing economic sustainability: Evidence from Bahraini SMEs

SMMEs in the Vhembe district encounter distinct problems, such as restricted access to financing, inadequate infrastructure, and insufficient support services. This study examines the impact of entrepreneurial leadership traits, including innovation, risk-taking, and proactive decision-making, on corporate outcomes such as growth, competitiveness, and sustainability. The study examined the correlation between leadership types and business success to provide actionable recommendations for governments and business leaders in promoting entrepreneurial leadership. The research utilised a qualitative methodology to investigate the influence of entrepreneurial leadership on small, medium, and micro enterprises (SMMEs) in the Vhembe district. Data were collected via semi-structured interviews with 16 leaders of small, medium, and micro enterprises (SMMEs), offering a varied perspective across multiple industries and business scales. The findings indicate that entrepreneurial leadership substantially influences SMMEs in the Vhembe District, with transformational and collaborative approaches improving financial and non-financial performance, innovation, and customer satisfaction. The study indicates that implementing transformational and collaborative leadership styles can markedly enhance financial performance, innovation, and customer happiness for SMMEs in the Vhembe District. This research provides novel perspectives on entrepreneurial leadership by examining the distinct setting of the Vhembe District. It contests prevailing ideas by emphasising the necessity for a leadership strategy adapted to local dynamics and market conditions. The study's novelty and significance stem from its distinctive emphasis on the Vhembe District, providing a novel viewpoint on entrepreneurial leadership.

Aim/Purpose: This study aimed to investigate the impact of innovation management and learning orientation as the mechanisms playing the role of an intermediate relationship between entrepreneurial leadership and organisational performance of small and medium enterprises (SMEs) in Kuwait. Background: SMEs are currently among the principal economic instruments in most industrialised and developing countries. The contribution of SMEs can be viewed from various perspectives primarily related to the crucial role they play in developing entrepreneurial activities, employment generation, and improving innovativeness. Developing countries, including Kuwait and other countries, in the Gulf Cooperation Council (GCC), have recognised the key role played by SMEs as a strong pillar of growth. Consequently, many governments have formulated policies and programmes to facilitate the growth and success of SMEs. Unfortunately, the organisational performance of SMEs in developing countries, particularly in Kuwait, remains below expectations. The lagged growth could be due to a lack of good managerial practices and increasing competition that negatively impact their performance. Numerous researchers discovered the positive effect of entrepreneurial leadership on SMEs’ performance. However, a lack of clarity remains regarding the direct impact of entrepreneurial leadership on SMEs’ performance, especially in developing countries. Therefore, the nexus between entrepreneurial leadership and organisational performance is still indecisive and requires further studies. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather data within a specific period. The data were collected by distributing a survey questionnaire to Kuwaiti SMEs’ owners and Chief Executive Officers (CEOs) via online and on-hand instruments. A total of 384 useable questionnaires were obtained. Moreover, the partial least square-structural equation modelling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: The current study contributed to the existing literature by developing a moderated mediation model integrating entrepreneurial leadership, innovation management, and learning orientation. The study also investigated their effect on the organisational performance of SMEs. The study findings also bridged the existing significant literature gap regarding the role of these variables on SMEs’ performance in developing countries, particularly in Kuwait, due to the dearth of studies linking these variables in this context. Furthermore, this study empirically confirmed the significant effect of innovation management and learning orientation as intermediate variables in strengthening the relationship between entrepreneurial leadership and organisational performance in the settings of Kuwait SMEs, which has not been verified previously. Findings: The study findings showed the beneficial and significant impact of entrepreneurial leadership and innovation management on SME’s organisational performance. The relationship between entrepreneurial leadership and SMEs’ organisational performance is fundamentally mediated by innovation management and moderated by learning orientation. Recommendations for Practitioners: The present study provides valuable insights and information regarding the factors considered by the government, policymakers, SMEs’ stakeholders, and other authorities in the effort to increase the organisational performance level and facilitate the growth of SMEs in Kuwait. SMEs’ owners or CEOs should improve their awareness and knowledge of the importance of entrepreneurial leadership, innovation management, and learning orientation. These variables will have beneficial effects on the performance and assets to achieve success and sustainability if adopted and managed systematically. This study also recommends that SMEs’ entrepreneurs and top management should facilitate supportive culture by creating and maintaining an organisational climate and structure that encourages learning behaviour and innovation mindset among individuals. The initiative will motivate them towards acquiring, sharing, and utilising knowledge and increasing their ability to manage innovation systemically in all production processes to adapt to new technologies, practices, methods, and different circumstances. Recommendation for Researchers: The study findings highlighted the mediating effect of innovation management on the relationship between entrepreneurial leadership (the independent variable) and SMEs’ organisational performance (the dependent variable) and the moderating effect of learning orientation in the same nexus. These relationships were not extensively addressed in SMEs of developing countries and require further validation. Impact on Society: This study aims to influence the management strategies and practices adopted by entrepreneurs and policymakers who work in SMEs in developing countries. The effect will be reflected in the development of their firms and the national economy in general. Future Research: Future research should investigate the conceptual research framework against the backdrop of other developing economies and in other business settings to generalise the results. Future investigation should seek to establish the effect of entrepreneurial leadership style on other mechanisms, such as knowledge management processes, which could function with entrepreneurial leadership to improve SMEs’ performance efficiently. In addition, future studies may include middle and lower-level managers and employees, leading to more positive outcomes.

Entrepreneurial leadership and innovation are needed for small and medium enterprises (SMEs) to survive and grow. Entrepreneurial leaders must unlock and use their employees’ creativity to innovate. Moreover, they should foster creativity, risk-taking, and teamwork to secure business growth and success. Therefore, this study analyzes the link between entrepreneurial leadership, creativity, and innovation among SMEs. The aim is to identify the traits that lead to entrepreneurial leadership which helps in fostering creativity and innovation among SMEs in Saudi Arabia.The study is based on primary data from employees, managers, and owners of SMEs in the capital region of the Kingdom of Saudi Arabia. Two hundred and eighty-one responses were collected. However, only two hundred and forty-eight responses were left for the final analysis. The results of the study indicate that entrepreneurial leadership positively influences organizational innovation and employee creativity among SMEs, where the coefficient was found to be significant. Next, no mediation relationships involving creativity were noted between entrepreneurial leadership and organizational innovation. However, entrepreneurial leadership has been identified as a critical driver of innovation and employee creativity in SMEs. Furthermore, the study suggests that SMEs need to foster a culture of innovation to unleash employee creativity. Finally, the study can have important implications for practitioners and academic scholars. AcknowledgmentThis project was supported by the Deanship of Scientific Research at Prince Sattam Bin Abdulaziz University under the research project (PSAU-2022/01/20421).

Purpose This research aims to examine entrepreneurial leadership’s (EL) impact on employees’ innovative work practices in small and medium-sized enterprises (SMEs) in Afghanistan. It specifically investigates the mediating roles of self-efficacy and organizational learning (OL) in the association between EL and innovative workplace behavior. The objective of the investigation is to offer a better understanding of how EL can cultivate a more innovative and creative work environment within Afghanistan’s businesses (SMEs). Design/methodology/approach A random sampling process was used to identify a representative sample of 150 CEOs and managers from Afghanistan’s SMEs. A questionnaire was distributed to each chosen participant. The SPSS and SmartPLS techniques were used to analyze the data to investigate the relationships among the research variables. The methodology emphasizes the quantitative evaluation of the mediating effects of self-efficacy and creativity in the context of EL. Findings The study results indicate that EL has a substantial and beneficial impact on creative self-efficacy (CSE). Furthermore, EL has been demonstrated to have an important constructive effect on innovative work practices. In addition, the results suggest that innovative work practices are substantially and positively influenced by CSE. Furthermore, there is a positive and substantial correlation between EL, inventive workplace conduct, OL and CSE. Research limitations/implications First, this study was conducted in Afghanistan. This may affect the generalizability of the findings to other contexts or regions. To improve the external validity of the findings, the upcoming investigations need to expand the sample size and incorporate SMEs from various countries. Second, this study used cross-sectional correlation design. A longitudinal investigation could suggest further profound perspectives regarding entrepreneurial leadership’s long-term influences on SMEs’ innovation. Practical implications The results indicate that to foster an increase in innovative work behavior, executives must provide employees with more opportunities to develop creative ideas in the workplace. The development of EL within SMEs can improve their innovative work practices and CSE. Programs for training and advancement that emphasize cultivating EL capabilities among managers and executives can be advantageous for SMEs. This can result in a more dynamic and innovative work environment, which in turn enhances the overall performance and competitiveness of the enterprises. Social implications By promoting EL and innovation within SMEs, the study highlights the potential for increased job satisfaction and motivation among employees. This can lead to higher productivity and economic growth in the SME sector, contributing to the overall socio-economic development of Afghanistan. Encouraging a culture of innovation can also inspire other sectors to adopt similar practices, fostering a more entrepreneurial and creative society. Originality/value The empirical evidence presented in this investigation supports the present works by signifying the mediating roles of self-efficacy and creativity in the association between EL and innovative workplace behavior. It provides valuable insights for both academicians and practitioners who are interested in comprehending the impact of leadership styles on creativity and innovation in SMEs, particularly in the context of a developing country such as Afghanistan.

The presence of small and medium-sized enterprises (SMEs) in Indonesia will contribute to the movement of the Indonesian economy, so its growth is an essential part that must be considered by the government. The goal of this study was to explore the role of innovative capabilities in improving the performance of Indonesian SMEs. A variable approach to social capital, entrepreneurial leadership, innovation ability and SME efficiency was used in this research. The research included a sample of 352 small and medium-sized enterprises in Pekanbaru, Indonesia, consisting of 19 medium-sized enterprises and 333 small enterprises out of a total population of 2887 small and medium-sized enterprises (the sampling methodology used was chance sampling and simple random sampling methods). The findings show that social capital does not explicitly have a substantial impact on the business performance of SMEs in Pekanbaru, but if it is mediated by creative capacities, social capital indirectly plays a role in improving the performance of SMEs. Entrepreneurial leadership has a big influence on SMEs.

<p class="AbstractText">Micro, small and medium-sized enterprises (SMEs) are considered to be the engine of the European economy. In EU SMEs make up more than 99% of all companies and provide around 75 million jobs. They are a key source of job creation and stimulation of entrepreneurial spirit and innovation and are therefore essential for fostering competitiveness and maintaining employment in the EU. Yet SMEs often have problems in raising funds to finance fixed investments and inventory and working capital. SMEs mostly use internal sources while the most important external sources of SMEs are bank loans, which are not easily accessible. Hence, one of the priorities of the European Commission is stimulating SMEs through EU funds and programs in order to enable SMEs development and finally to contribute to economic growth. SMEs sector also dominates the economic structure of Croatian economy and they have similar financing problems. However, Croatia in period 2014 – 2020 have at disposal a total amount of 10.676 billion of euros from European structural and investment funds, of which 8.397 billion are aimed for cohesion policy objectives and 470 million euros are aimed for the development and competitiveness of SMEs. Besides, EU programs COSME and HORIZON 2020 are intended to provide direct support to SMEs and to create a favorable environment for their development. However, even though the number of successful project applications for small and medium-sized enterprises in the total share of Croatian project applications is relatively high, fund absorption has not reached satisfactory levels. Using the sample of Split-Dalmatia County’s SMEs, this study finds out reasons for low absorption capacity from SMEs point of view: SMEs are interested in funds from European Union, but are not sufficiently familiar with their availability i.e. funds at their disposal, especially programs COSME and HORIZON 2020; SMEs state that they know how to apply for EU funds but considered the procedure as complicated and demanding regarding documentation, and that the needed knowledge and know-how for proposal is beyond their scope; SMEs are not satisfied with the cooperation with state institutions, especially Ministry of Regional Development and EU funds and Croatian Chamber of Economy. We point out four main conclusions: (1) SMEs are not enough aware of EU financing possibilities; (2) additional promotion of EU programs directly to SMEs is required; (3) additional education of SMEs regarding project proposal and documentation is needed and (4) more proactive policy of state institutions and cooperation with local authorities is expected. Finally, greater awareness and professional help might be a key in strengthening the SMEs, whose entrepreneurial spirit and innovation process is a prerequisite for economic growth and development.</p>

Objective: The defining objectives of the study are the following three. First, to classify the level of real development of internationalisation in Ukrainian SMEs. To accomplish this goal, the authors summarise the theory and methodology defining the field of internationalization. They also present their own empirical studies on Ukrainian small and medium-sized enterprises (SMEs). Second, they analyse the main forms, motivational factors and barriers to the internationalisation of Ukrainian SMEs. Finally, they discuss the development of strategies and mechanisms for activating the internationalisation of SMEs in Ukraine.Research Design & Methods: The study used qualitative research, including a survey of the literature and our own empirical research (detailed interviews with Ukrainian entrepreneurs, survey questionnaire, and experimental assessments of scientists from Ukraine and Poland on this subject).Findings: The present condition of the internationalisation of Ukrainian small and medium-sized enterprises is assessed, and its obstacles and motives have been identified. In the context of the European Union’s experience in regulating small and medium-sized businesses, the most promising strategies and sectors of the economy have been classified. It is in these sectors that Ukrainian small and medium-sized enterprises should gain the greatest competitive advantages. Lastly, mechanisms for promoting the internationalisation of Ukrainian SMEs are defined.Implications / Recommendations: In modern conditions the internationalisation of Ukrainian small and medium-sized enterprises is at an early stage. It does currently extend substantively beyond export-import operations. In Ukraine, enterprises that internationalise tend to do so upon or near their inception. The main approach to stimulating the internationalisation of Ukraine’s SME sector is to develop effective state regulatory policy adapted to the contemporary norms and standards of the European Union. The results of the study have shown that Ukrainian SMEs can gain their greatest competitive advantages in the global market in industries including agriculture (primarily, “eco” and “green”), alternative and renewable energy production and IT technologies.Contribution: Research fills a research gap in the field of internationalisation of Polish and Ukrainian small and medium-sized enterprises.

Enterprises seek for possibilities to limit the costs and for areas that stimulate the level of innovation. Both of these aspects can be effectively supported by application of cloud computing, without a simultaneous need to make a choice of a trade-off type. The aim of the article is to prove that cloud computing provides entrepreneurs with the possibility to limit the costs and at the same time to support their activities related to the selected direction of innovation development. It has both a direct influence on the level and structure of costs in the enterprise, as well as an indirect influence, e.g. related to shortening the time for introduction of new solutions to the market, making decisions or limiting the costs of projects.

The analysis conducted in this empirical study is the direct and indirect impact of internal entrepreneurial factors on the performance of small and medium enterprises. These factors were identified from previous studies from various countries, such as entrepreneurial-innovative work behavior, entrepreneurial leadership, entrepreneurial self-efficacy, and entrepreneurial motivation, by taking the research object of small-medium enterprise owners in Java. East, Indonesia. Descriptive statistics and structural equation models were used to analyze the research data. Samples were taken with uncontrolled quota sampling techniques. The research data was collected by distributing questionnaires online with the Google form application and offline. The total respondents were 575 small-medium enterprise owners. The test results showed that internal factors such as entrepreneurial self-efficacy, motivation, and leadership could increase business performance significantly.In contrast, entrepreneurial-innovative work behavior cannot significantly increase business performance. Other test results showed that: 1) entrepreneurial self-efficacy significantly improved entrepreneurial motivation; 2) entrepreneurial leadership significantly improved innovative entrepreneurial behavior; 3) entrepreneurial motivation partially mediated the influence of entrepreneurial self-efficacy on business performance; 4) innovative entrepreneurial behavior did not mediate the influence of entrepreneurial leadership on business performance. The contribution of the results of this study provides additional empirical studies on the role of entrepreneurial leadership, which significantly increases innovative entrepreneurial behavior. There is a lot of potential to develop business existence through entrepreneurial leadership through innovative behavior in entrepreneurship. Another contribution of this study is that entrepreneurial self-efficacy is a dominant predictor of business performance in SMEs and significantly increases entrepreneurial motivation. These findings reveal the importance of self-efficacy for SMEs because high self-efficacy for business actors is expected to increase entrepreneurial self-efficacy and teamwork motivation in helping to achieve business performance.

Micro, small and medium-sized enterprises (SME) play a significant role in the economy. According to the European Commission data, the SME sector in 2018 represented 99.8% of all enterprises in Europe, and likewise in Poland, therefore it is vital to have access to information regarding this sector and its economic situation on the lowest possible level of aggregation. The aim of the study described in this paper is to assess as to what degree data collected in public registers in Poland, including the information compiled by the Social Insurance Institution (ZUS) register, can constitute a source of information about the situation and development of the SME sector at the local level. The paper presents the economic situation of the SME sector in Europe, and also a range of information collected in ZUS registers relating to micro enterprises (including the self-employed enterpreneurs), small and medium-sized enterprises. Information concerning the SME sector in Kujawsko-Pomorskie Voivodship as of December 2018 is used in the research. The results confirm that register data enables the assessment of the economic situation of micro, small and medium- sized enterprises at the level of gminas (municipalities, communes), as per the OECD recommendations to broaden knowledge about the condition of the sector at a local level.

As Small and Medium size Enterprises (SMEs) grow and expand, certain issues and social demands come up with this growth including the firms’ responsibility towards ethical and social benefits, environmental issues and economic prosperity. SMEs go through these challenges while they experience financing difficulties and profitability priorities. The literature review, both internationally and locally, shows insufficient knowledge and information in relation to the implementation of sustainable management in SMEs. The basic attention was directed towards the production of sustainable products but not the sustainable management of these firms and hence the latter being the general problem area of this research. The research started with exploring the availability of sustainable management practices in the Kingdom of Bahrain (KOB). Through the Ministry of Industry and Commerce (MOIC) it was clearly stated that SMEs play a huge role in the KOB since 99% of registered businesses are SMEs, which, drove the Ministry to develop an SME toolkit reassuring the importance of starting SMEs in the KOB and moving towards developing a business. The research focuses on the practices of sustainable management in the KOB and the aim is to investigate and assess the implementation and effectiveness of sustainable management in SMEs. The research ends up with a proposed model that would hopefully contribute to more effective integration of sustainability practices into the management of interior design SMEs in the KOB.

A study of small and medium sized enterprises (SMEs) in Wales was undertaken to evaluate the effectiveness and competence of users of information technology (IT) and information systems (IS). A questionnaire survey, followed by selected follow-up interviews, was conducted: to determine levels of information technology (IT) and information systems (IS) use by small and medium enterprises (SMEs) in Wales; to identify key factors influencing SMEs’ ability to exploit opportunities that technology offers; to investigate whether IT/IS is managed in an active and strategic fashion; to assess the use and management of data within these enterprises; and to consider whether SMEs have opportunities to create strategic advantage from IT/IS. The results indicated that the utilization of IT is increasing but the majority of SMEs are under-exploiting the potential benefits due to a lack of management direction. Nevertheless, although few SMEs are being seen to achieve competitive advantage, those enterprises that are doing so tend to be focusing on acquiring knowledge, using their flexibility and ability to react speedily and generating innovative solutions. Th study identified areas where further research was needed to support the findings, particularly in terms of the regularly review of the level and exploitation of IT/ IS within the SME sector within Wales and the rest of the UK via quantitative surveys providing a base for a longitudinal comparison of data; the investigation of the factors that deter IT/IS development within SMEs; and the review of IS/IT within individual SME industries and sectors, utilizing case study methodology and allowing for the qualitative analysis of key factors underpinning usage. (Part 1 of this article was published in the previous issue of Business Information Review).

Analysis of the key factors for small and medium-sized enterprises growth using principal component analysis

This study aims to analyze the effect of entrepreneurial leadership on organizational performance by considering the mediating role of dynamic capability in the context of the digital era. This study employs a quantitative approach utilizing structural equation modeling (SEM) based on Partial Least Squares (PLS). A survey was used to gather data from 385 respondents from top management or owners of Small and Medium Enterprises (SMEs) Healthcare Clinics in Indonesia. Data was processed using SmartPLS software version 3.0. The results showed that entrepreneurial leadership has a positive and significant influence on dynamic capability (path coefficient = 0.777; t-statistic = 26.792; p = 0.000), entrepreneurial leadership has a positive and important impact on organizational performance (path coefficient = 0.306; t-statistic = 5.232; p = 0.000), dynamic capability has a positive and significant influence on organizational performance (path coefficient = 0.510; t-statistic = 8.994; p = 0.000),. In addition, dynamic capability acts as a mediator that strengthens the influence of entrepreneurial leadership on organizational performance, highlighting the importance of adaptation and innovation to face the challenges of the digital era. This study provides insights for clinical SME leaders to develop entrepreneurial leadership skills that can drive the organization's dynamic capabilities and improve performance amid the dynamics of the digital era. This study contributes to the literature on entrepreneurial leadership and dynamic capabilities by highlighting their relationship to organizational performance in the context of SME Clinics in digital transformation.

Purpose The purpose of this paper is to assess the influence of innovation orientation dimensions on the performance of manufacturing small- and medium-sized enterprises (SMEs) in Ghana. Design/methodology/approach Probability sampling technique, particularly, simple random method, was used for this study. Approximately, 81% response rate was achieved from a total sample size of 346. Furthermore, PLS-SEM technique was used to determine the relationships among the study variables. Findings The result showed that market innovation significantly predicted SMEs’ performance. Conversely, non-significant positive nexus was established between process innovation and SMEs’ performance as well as product innovation and SMEs’ performance. Practical implications Based on the outcome, the stakeholders in the SME sector should aim at improving their market, products and process innovations. Originality/value Despite the importance attached to the employment of innovation in the SME sector by scholars in the extant literature, studies involving dimensions of innovation orientation on SMEs’ performance were not much seen in literature. This study enriched literature by determining the relationships between the innovation orientation dimensions and SMEs’ performance.