Entrepreneurial Leadership and Organization Innovation: Effect of Knowledge Management and Organizational Climate

Abstract

The purpose of this paper is to examine the effects of entrepreneurial leadership and knowledge management on organizational innovation of small-medium enterprises (SMEs) as well to determine whether organizational climate moderates the mediating effect of knowledge management in the entrepreneurial leadership and organizational innovation relationship. The study was carried out on the base questionnaire survey among 115 SME owners of Magelang. The analysis tool uses Structural Equation Modeling (SEM) in testing hypotheses and through the Warp PLS program. The empirical findings indicate that entrepreneurial leadership and knowledge management positively influence organizational innovation. But contrary to the prediction, the result indicates that the moderation and moderated mediation relationship are weaker under an organizational climate.