Impact of Entrepreneurial Leadership on SMEs Performance: The Mediating Role of Innovation Capabilty and TQM Practices
Abstract
Small and medium-sized enterprises' (SMEs') performance has been found to be significantly influenced by entrepreneurial leadership, which also has a major impact on the SMEs' growth and competitiveness. This study aims to study the impact of entrepreneurial leadership on Small and Medium Enterprises (SMEs) performance and the mediating role of innovation capability and Total Quality Management (TQM) practices. This research achieved result through a quantitative approach. The validity of the questionnaire's item objective congruence (IOC) was assessed before to the data collection process using a test with three experts. The sample data are gathered using the stratified random sampling method. To assess the validity of the items, a sample of 20 participants from the pilot study was employed. The study's sample size was 220 SMEs employee through purposive sampling. The data were analyses by SPSS and Smart PLS software. The results shows that relationship among entrepreneurial leadership, innovation capacity, Total Quality Management and SMEs performance. Similarly, there is mediating effect of innovation capability and TQM practices on entrepreneurial leadership and SMEs performance. The study emphasizes how much entrepreneurial leadership affects the performance of SMEs. It highlights the critical mediating function that developing innovative capabilities and Total Quality Management (TQM) approaches play. This suggests that adopting an entrepreneurial leadership style can help SMEs perform better, but the impact is greater when innovation and TQM are also present. These results highlight the significance of having innovative leaders and fostering an atmosphere that prioritizes upholding high standards of quality and innovation, since these factors ultimately contribute to improved SME performance and competitiveness. The results will help to understand what makes SMEs successful and offer useful guidance for policymakers and managers who want to improve their performance through effective management, innovation, and quality control.
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