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Strategic leadership in SMEs: the mediating role of dynamic capabilities

Strategic leadership in SMEs: the mediating role of dynamic capabilities Small and medium-sized enterprises (SMEs) play a vital role throughout the global economy, spurring innovation and job creation. This study investigates the effect of strategic leadership practices on SME performance.Design/methodology/approachThe authors conducted a quantitative survey of leaders from 290 SMEs to examine their strategic leadership and how it affects SME performance. Structural equation modeling (SEM) is used to test the dependent relationships in this paper.FindingsThe results suggest that the strategic leadership effect on firm performance is fully mediated by employee empowerment dynamic capability (EEDC) as well as resilient dynamic capability (RDC).Originality/valueStrategic leadership is traditionally analyzed in large organizations. The authors evaluate the role of strategic leadership in SMEs which is an underexplored context for leadership studies. In this process, the authors also analyze the mediating role of EEDC and RDC. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Leadership & Organization Development Journal Emerald Publishing

Strategic leadership in SMEs: the mediating role of dynamic capabilities

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References (53)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0143-7739
DOI
10.1108/lodj-05-2021-0229
Publisher site
See Article on Publisher Site

Abstract

Small and medium-sized enterprises (SMEs) play a vital role throughout the global economy, spurring innovation and job creation. This study investigates the effect of strategic leadership practices on SME performance.Design/methodology/approachThe authors conducted a quantitative survey of leaders from 290 SMEs to examine their strategic leadership and how it affects SME performance. Structural equation modeling (SEM) is used to test the dependent relationships in this paper.FindingsThe results suggest that the strategic leadership effect on firm performance is fully mediated by employee empowerment dynamic capability (EEDC) as well as resilient dynamic capability (RDC).Originality/valueStrategic leadership is traditionally analyzed in large organizations. The authors evaluate the role of strategic leadership in SMEs which is an underexplored context for leadership studies. In this process, the authors also analyze the mediating role of EEDC and RDC.

Journal

Leadership & Organization Development JournalEmerald Publishing

Published: Nov 7, 2022

Keywords: Strategic leadership; Employee empowerment; Resilient dynamic capabilities

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