Purpose: Based on social cognitive theory, the present study aimed to explore the impact of entrepreneurial leadership on employees' innovative work behavior through the moderating path of entrepreneurial self-efficacy in technology-based SMEs. The study also explains the mechanism through which a firm's innovative environment mediates the relationship between entrepreneurial leadership and employees' innovative work behavior. Methods: To pursue the objectives, this study has used data from a sample of 350 supervisor-subordinate dyads working in cross sectional small and medium enterprises (SMEs) operating in the Jiangsu province of China. Based on social cognitive theory and specific continuum of self-efficacy theory, a conceptual model was developed and the hypotheses were tested with the help of SPSS 20. Findings: Empirical findings recommend a significant positive effect of entrepreneurial leadership on employees' innovative work behavior. The study suggested that firm's innovative environment mediates the relationship between entrepreneurial leadership and the employees' innovative behavior. The results also confirmed that entrepreneurial self-efficacy exerts a positive moderating effect on the association of entrepreneurial leadership and employees' innovative behavior. Conclusion: Findings of the present research work have several implications for the management and policymakers of high-tech SMEs who want to augment their employees' innovative behavior in order to compete in a highly competitive and challenging business environment. To the best of authors' knowledge, this work is the first attempt that presents an empirically supported comprehensive model for the development of employees' innovative behavior within entrepreneurial-based high-tech SMEs. It contributes to literature by examining the mediation and moderation process for the development of employees' innovative behavior.
Purpose
This paper aims to develop an original framework of innovation and to explore the complexity of association between individual and collective (team-based) entrepreneurship, and their simultaneous impacts on innovation in context of small and medium enterprises (SMEs).
Design/methodology/approach
An integral theoretical framework is developed to encourage innovation and the hypothetical relations are tested with the help of structural equation modeling (SEM) through AMOS. Data were gathered through survey technique and the questioners were distributed through email among 700 entrepreneurs from SMEs operating in five major industrial cities of Punjab province Pakistan.
Findings
The results of SEM analyses confirm that both the individual entrepreneur and the collective efforts of all the business members contribute to innovation in SMEs. Entrepreneur’s personality traits have a direct positive impact on innovation while the centralized decision-making by entrepreneur is not associated with innovation. Centralized decision-making is found to be negatively associated with communication and have insignificant positive association with collaboration. Factors associated with the team-based entrepreneurship like communication and collaboration among members of the SME’s contribute to the entrepreneurial orientation and collective entrepreneurship. Entrepreneurial orientation and collective entrepreneurship have direct positive impact on innovation in SMEs.
Practical implications
It is imperative for SMEs to encourage decentralized organizational culture and participative leadership to bring innovation into their products and processes and further to improve their competitive advantage.
Originality/value
To the best of author knowledge, present study is a first attempt that explores the complex association between individual and team-based entrepreneurship and further, empirically investigate the simultaneous impacts of these variables on innovation in context of SMEs.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.