Impact of Entreneurial Leaership on SMEs Perormance : 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.
References
Ahmad, N., Youjin, L., Žiković, S., & Belyaeva, Z. (2023). The effects of technological innovation on sustainable development and environmental degradation: Evidence from China. Technology in Society, 72, 102184.Ahmad, N., Youjin, L., & Zikovic, S. (2023). The effects of technological innovation on sustainable development and environmental degradation: Evidence from China. Technology in Society, 72, 102184. doi:https://doi.org/10.1016/j.techsoc.2022.102184
Akanmu, M. D., Hassan, M. G., Mohamad, B., & Nordin, N. (2023). Sustainability through TQM practices in the food and beverages industry. International Journal of Quality & Reliability Management, 40, 335-364. doi:https://doi.org/10.1108/IJQRM-05-2021-0143
Al-Sharif, A. M., Ali, M. H., Jaharuddin, N. S., Abdulsamad, A., & Jandab, A. (2023). The Role of Innovation Capability in the Relationship between . Advances in Social Sciences Research Journal, 10, 264-278. doi:10.14738/assrj.101.13802
Andres-Sanchez, J. d., Musiello-Neto, F., Rua, O. L., & Arias-Oliva, M. (2022). Configurational Analysis of Inbound and Outbound Innovation Impact on Competitive Advantage in the SMEs of the Portuguese Hospitality Sector. Journal of Open Innovation: Technology, Market, and Complexity, 8, 205. doi:https://doi.org/10.3390/joitmc8040205
Anifowose, O. N., Ghasemi, M., & Olaleye, B. R. (2022). Total Quality Management and Small and Medium-Sized Enterprises’(SMEs) Performance: Mediating Role of Innovation Speed. Sustainability, 14, 8719. doi:https://doi.org/10.3390/su14148719
Anshari, M., & Hamdan, M. (2022). Understanding knowledge management and upskilling in Fourth Industrial Revolution: transformational shift and SECI model. VINE Journal of Information and Knowledge Management Systems, 53. doi:https://doi.org/10.1108/VJIKMS-09-2021-0203
Brodny, J., & Tutak, M. (2022). Digitalization of Small and Medium-Sized Enterprises and economic growth: Evidence for the EU-27 countries. Journal of Open Innovation: Technology, Market, and Complexity, 8, 67. doi:https://doi.org/10.3390/joitmc8020067
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.
Cohen, J. (2013). Statistical power analysis for the behavioral sciences (2nd ed.). New York: Routledge.
Davis, M. W. (2019). Innovative Leadership. Journal of Leadership, Accountability & Ethics, 16.
Doroodian, M., Rahman, M. N., Kamarulzaman, Y., & Muhamad, N. (2014). Designing and Validating a Model for Measuring Innovation Capacity Construct. Advances in Decision Sciences.
Esmer, Y., & Dayi, F. (2017). Entrepreneurial leadership: A theoretical framework. Mehmet Akif Ersoy {"U}niversitesi {.I}ktisadi ve {.I}dari Bilimler Fak{"u}ltesi Dergisi, 4, 112-124. doi:https://doi.org/10.30798/makuiibf.332570
Gwakwa, M., & Siyavizva, K. P. (2022). Anatomy of Entrepreneurial Leadershipand Administration. Journal of Contemporary Issues in Business and Government Vol, 28. doi:10.47750/cibg.2022.28.03.034
Hair, J. F., Hult, G. T., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Nature.
Heenkenda, H., Xu, F., Kulathunga, K., & Senevirathne, W. (2022). The Role of Innovation Capability in Enhancing Sustainability in SMEs: An Emerging Economy Perspective. Sustainability, 14, 10832. doi: https://doi.org/10.3390/su141710832
Hoang, G., Luu, T. T., Nguyen, T. T., Du, T., & Le, L. P. (2022). Examining the effect of entrepreneurial leadership on employees’ innovative behavior in SME hotels: A mediated moderation model. International Journal of Hospitality Management, 102, 103142. doi:https://doi.org/10.1016/j.ijhm.2022.103142
Hu, M. K., & Kee, D. M. (2022). Fostering sustainability: reinventing SME strategy in the new normal. Foresight, 24, 301-318. doi:https://doi.org/10.1108/FS-03-2021-0080
Jbeily, A. H. (2022). Impact of Total Quality Management (TQM) on the Competitive Priorities of Lebanese Industries. European Journal of Business and Management Research, 7, 313-320. doi:https://doi.org/10.24018/ejbmr.2022.7.4.1592
Kang, H., & Ahn, J.-W. (2021). Model setting and interpretation of results in research using structural equation modeling: A checklist with guiding questions for reporting. Asian Nursing Research, 15, 157-162.
Kasim, N. M., & Zakaria, M. N. (2019). The significance of entrepreneurial leadership towards Malaysian school performance: mediator by empowerment. Int J Educ Psychol Couns, 4, 409-426. doi:10.35631/IJEPC.4310035
Kharel, P. (2022). Fostering structural transformation in Nepal. UN-ESCAP.
Lu, J., Guo, S., Qu, J., Lin, W., & Lev, B. (2023). “Stay” or “Leave”: Influence of employee-oriented social responsibility on the turnover intention of new-generation employees. Journal of Business Research, 161, 113814. doi:https://doi.org/10.1016/j.jbusres.2023.113814
Ma, K. W., Mak, C. M., & Wong, H. M. (2020). Development of a subjective scale for sound quality assessments in building acoustics. Journal of Building Engineering, 29, 101-177.
Manjon, M.-J., Merino, A., & Cairns, I. (2022). Business as not usual: A systematic literature review of social entrepreneurship, social innovation, and energy poverty to accelerate the just energy transition. Energy Research & Social Science, 90. doi:https://doi.org/10.1016/j.erss.2022.102624
Manzoor, F., Wei, L., Nurunnabi, M., & Subhan, Q. A. (2019). Role of SME in Poverty Alleviation in SAARC Region via Panel Data Analysis. Sustainability, 11, 6480. doi:https://doi.org/10.3390/su11226480
Muhamad, L. F., Bakti, R., Febriyantoro, M. T., Kraugusteeliana, K., & Ausat, A. M. (2023). Do Innovative Work Behavior and Organizational Commitment Create Business Performance: A Literature Review. Community Development Journal: Jurnal Pengabdian Masyarakat, 4, 713-717. doi:https://doi.org/10.31004/cdj.v4i1.12479
Osazevbaru, H. O., & Oyibo, F. (2023). Conceptualising Total Quality Management as a Predictor of Performance in Nigerian Microfinance Institutions. European Journal of Business and Management Research, 8, 86-92.
Purwati, A. A., Budiyanto, B., & Suhermin, S. (2022). Social Capital, Entrepreneurial Leadership and SMEs Performance: The Mediating Effect of Innovation Capability. JPBM (Jurnal Pendidikan Bisnis dan Manajemen), 7, 170-181.
Rajashekharaiah, J., & Deshpande, S. (2023). Enabling the Ambitious ZED Target Initiative of the Government of India Through CLAG Operations. SEDME (Small Enterprises Development, Management & Extension Journal), 50, 23-37. doi:https://doi.org/10.1177/09708464221130909
Reim, W., Yli-Viitala, P., Arrasvuori, J., & Parida, V. (2022). Tackling business model challenges in SME internationalization through digitalization. Journal of Innovation & Knowledge, 7, 100199. doi:https://doi.org/10.1016/j.jik.2022.100199
Reuschke, D., Mason, C., & Syrett, S. (2022). Digital futures of small businesses and entrepreneurial opportunity. Futures, 135, 102877. doi:https://doi.org/10.1016/j.futures.2021.102877
Saunila, M. (2020). Innovation capability in SMEs: A systematic review of the literatur. Journal of Innovation & Knowledge, 5, 260-265. doi:https://doi.org/10.1016/j.jik.2019.11.002
Sawaeana, F. A., & Alib, K. A. (2020). The impact of entrepreneurial leadership and learning orientation on organizational performance of SMEs: The mediating role of innovation capacity. Management Science Letters, 10, 369-380. doi:10.5267/j.msl.2019.8.033
Schiuma, G., Schettini, E., Santarsiero, F., & Carlucci, D. (2022). The transformative leadership compass: six competencies for digital transformation entrepreneurship. International Journal of Entrepreneurial Behavior & Research, 28, 1273-1291. doi:https://doi.org/10.1108/IJEBR-01-2021-0087
Wongsansukcharoen, J., & Thaweepaiboonwong, J. (2023). Effect of innovations in human resource practices, innovation capabilities, and competitive advantage on small and medium enterprises’ performance in Thailand. European Research on Management and Business Economics, 29, 100210. doi:https://doi.org/10.1016/j.iedeen.2022.100210
Zanubiya, J., & Meria, L. (2023). Increasing Consumers with Satisfaction Application based Digital Marketing Strategies. Startupreneur Bisnis Digital (SABDA Journal), 2, 12-21.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Nimitmai Review Journal
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
