A capability-based pathway from entrepreneurial leadership to SME performance
DOI:
https://doi.org/10.35335/ijafibs.v14i2.511Kata Kunci:
Dynamic Capabilities, Entrepreneurial Leadership, Innovation Capability, Sme Performance, Strategic AgilityAbstrak
SMEs in emerging regional economies depend heavily on owner-managers, yet prior research does not adequately explain whether entrepreneurial leadership improves performance directly or through distinct organizational capabilities. This study examines the parallel mediating roles of strategic agility and innovation capability in the relationship between entrepreneurial leadership and SME performance. Survey data were obtained from 384 SME owners and managers in Southeast Sulawesi, Indonesia, and analyzed using PLS-SEM in SmartPLS 4. Entrepreneurial leadership had strong positive effects on strategic agility (β = 0.790, p < 0.001) and innovation capability (β = 0.791, p < 0.001), but only a modest direct effect on SME performance (β = 0.083, p = 0.035). Strategic agility (β = 0.227, p < 0.001) and innovation capability (β = 0.683, p < 0.001) both improved performance. The indirect effect through innovation capability (β = 0.540, p < 0.001) was substantially larger than the indirect effect through strategic agility (β = 0.179, p < 0.001). The study contributes by showing that entrepreneurial leadership is primarily performance-relevant when translated into firm-level adaptive and value-creation capabilities. SME support programs should therefore connect leadership development with rapid decision routines, market responsiveness, product and service renewal, and continuous process improvement.
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