The purpose of this paper is to analyze the impact of various dynamic capabilities (Innovation (IN), entrepreneurial leadership (EL), Social media (SM), and digital technology (DT)) on Business performance (BP). This study also analysis the mediating impact of talent management(TM), and Entrepreneurial orientation (EO) between EL, and Business performance. The reason for this is that in the handicraft industry SM, DT TM, and SR impact on business performance are still not fully understood. We have adopted a survey-based methodology from 410 handicraft artisans or entrepreneurs. Data was empirically analyzed to test the theoretical model of mediation through Smart partial least square method (SMART PLS-SEM) software. The study's findings prove entrepreneurial EL improves Business performance whereas the association between Social media (SM) and BP is insignificant. The mediating impact of Talent management, EO, and strategic resilience was statistically positive and significant and proved that bridging between BP and all three mediators supports and makes stronger EL for boosting business performance. Innovation, and digital technology, positively affect Business performance. This study explores artisans' formal entrepreneurial EL style. This study is unique because the Dynamic capability theory (DCT) as an extension of the resource-based view (RBV) has been used for critical business factors like EL, strategic resilience, Business performance, digital technology, innovation, and talent management in the handicraft sector will be extended. This study also proposes a new Digital capability view (DCV) for future study. This study will explore the theoretical and practical understating of (DCT) with managerial use of EL, Innovation, and TM for boosting Business performance.
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