The role of ethical behavior and entrepreneurial leadership to improve organizational performance

Widyani, Anak Agung Dwi; Landra, Nengah; Sudja, Nengah; Ximenes, Mateus; Sarmawa, I Wayan Gde

doi:10.1080/23311975.2020.1747827

Cited by 21 publications

(20 citation statements)

References 18 publications

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“…Integrating ethical behavior with entrepreneurial leadership is significantly able to improve organizational performance. So, ethical entrepreneurial leadership is very important in the management of the organization (Widyani et al, 2020). Based on these arguments, the research hypothesis can be built: Hypothesis 2: Ethical Entrepreneurial Leadership has a significant positive effect on organizational sustainability Some studies have found that ethical leaders can foster the trust of organizational members in their leaders (Akker et al, 2009;Engelbrecht, 2014).…”

Section: Entrepreneurial Leadershipmentioning

confidence: 99%

Ethical entrepreneurial leadership and organizational trust for organizational sustainability

Sarmawa

Widyani

Sugianingrat

et al. 2020

Cogent Business & Management

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This study aims to examine and analyze the role of ethics in entrepreneurial leadership, and its influence on organizational trust and organizational sustainability. This study also analyzes the role of organizational trust in mediating the relationship of ethical entrepreneurial leadership to organizational sustainability. This research was conducted at the Village Credit Institution (Lembaga Perkreditan Desa/LPD) in Bali. The total population of active LPD in Bali in 2018 was 1,422 units. The number of samples is determined based on the Slovin formula with a precision level of 10%. The calculation results obtained a total sample of 93 LPD. The determination of the number of samples in each group is done by stratified proportional random sampling. Data collection was carried out by distributing questionnaires to the leaders of the LPD. The data collected was analyzed with the SmartPLS 3.0 program. The results of the analysis show that ethics is significantly a part of entrepreneurial leadership, so leaders who reflect entrepreneurial leadership styles and prioritize ethical behavior can be referred to as ethical

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Section: Entrepreneurial Leadershipmentioning

confidence: 99%

Ethical entrepreneurial leadership and organizational trust for organizational sustainability

Sarmawa

Widyani

Sugianingrat

et al. 2020

Cogent Business & Management

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“…Previous research has found that influential entrepreneurial leaders are more likely to succeed in improving performance (Wahab & Tyasari, 2019;Widyani et al, 2020) of SMEs (Koryak et al, 2015), developing an inspiring entrepreneurial vision for the business (M. Chen, 2007), and putting forward new ideas to address challenges through creative methods (Rae, 2017). Thus, organisational performance can be enhanced (Fontana & Musa, 2017;V.…”

Section: Entrepreneurial Leadership and Organisational Performancementioning

confidence: 99%

Entrepreneurial Leadership and Organisational Performance of SMEs in Kuwait: The Intermediate Mechanisms of Innovation Management and Learning Orientation

Sawaean

Ali

Alenezi

2021

IJIKM

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Aim/Purpose: This study aimed to investigate the impact of innovation management and learning orientation as the mechanisms playing the role of an intermediate relationship between entrepreneurial leadership and organisational performance of small and medium enterprises (SMEs) in Kuwait. Background: SMEs are currently among the principal economic instruments in most industrialised and developing countries. The contribution of SMEs can be viewed from various perspectives primarily related to the crucial role they play in developing entrepreneurial activities, employment generation, and improving innovativeness. Developing countries, including Kuwait and other countries, in the Gulf Cooperation Council (GCC), have recognised the key role played by SMEs as a strong pillar of growth. Consequently, many governments have formulated policies and programmes to facilitate the growth and success of SMEs. Unfortunately, the organisational performance of SMEs in developing countries, particularly in Kuwait, remains below expectations. The lagged growth could be due to a lack of good managerial practices and increasing competition that negatively impact their performance. Numerous researchers discovered the positive effect of entrepreneurial leadership on SMEs’ performance. However, a lack of clarity remains regarding the direct impact of entrepreneurial leadership on SMEs’ performance, especially in developing countries. Therefore, the nexus between entrepreneurial leadership and organisational performance is still indecisive and requires further studies. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather data within a specific period. The data were collected by distributing a survey questionnaire to Kuwaiti SMEs’ owners and Chief Executive Officers (CEOs) via online and on-hand instruments. A total of 384 useable questionnaires were obtained. Moreover, the partial least square-structural equation modelling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: The current study contributed to the existing literature by developing a moderated mediation model integrating entrepreneurial leadership, innovation management, and learning orientation. The study also investigated their effect on the organisational performance of SMEs. The study findings also bridged the existing significant literature gap regarding the role of these variables on SMEs’ performance in developing countries, particularly in Kuwait, due to the dearth of studies linking these variables in this context. Furthermore, this study empirically confirmed the significant effect of innovation management and learning orientation as intermediate variables in strengthening the relationship between entrepreneurial leadership and organisational performance in the settings of Kuwait SMEs, which has not been verified previously. Findings: The study findings showed the beneficial and significant impact of entrepreneurial leadership and innovation management on SME’s organisational performance. The relationship between entrepreneurial leadership and SMEs’ organisational performance is fundamentally mediated by innovation management and moderated by learning orientation. Recommendations for Practitioners: The present study provides valuable insights and information regarding the factors considered by the government, policymakers, SMEs’ stakeholders, and other authorities in the effort to increase the organisational performance level and facilitate the growth of SMEs in Kuwait. SMEs’ owners or CEOs should improve their awareness and knowledge of the importance of entrepreneurial leadership, innovation management, and learning orientation. These variables will have beneficial effects on the performance and assets to achieve success and sustainability if adopted and managed systematically. This study also recommends that SMEs’ entrepreneurs and top management should facilitate supportive culture by creating and maintaining an organisational climate and structure that encourages learning behaviour and innovation mindset among individuals. The initiative will motivate them towards acquiring, sharing, and utilising knowledge and increasing their ability to manage innovation systemically in all production processes to adapt to new technologies, practices, methods, and different circumstances. Recommendation for Researchers: The study findings highlighted the mediating effect of innovation management on the relationship between entrepreneurial leadership (the independent variable) and SMEs’ organisational performance (the dependent variable) and the moderating effect of learning orientation in the same nexus. These relationships were not extensively addressed in SMEs of developing countries and require further validation. Impact on Society: This study aims to influence the management strategies and practices adopted by entrepreneurs and policymakers who work in SMEs in developing countries. The effect will be reflected in the development of their firms and the national economy in general. Future Research: Future research should investigate the conceptual research framework against the backdrop of other developing economies and in other business settings to generalise the results. Future investigation should seek to establish the effect of entrepreneurial leadership style on other mechanisms, such as knowledge management processes, which could function with entrepreneurial leadership to improve SMEs’ performance efficiently. In addition, future studies may include middle and lower-level managers and employees, leading to more positive outcomes.

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“…The religiosity factor is a factor that influences and moderates performance (Adi & Adawiyah, 2018). Other research shows ethical rules and habits can improve company performance (Widyani et al, 2020). The existence of the economic crisis a few years ago has made Western countries take an interest in Islamic economics because Sharia firms proved to be better than non-sharia firms during the crisis (Ashraf & Khawaja, 2016;Jawadi et al, 2014).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Islamic index, independent commissioner and firm performance

Gati

Nasih

Agustia

et al. 2020

Cogent Business & Management

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The prime objective of this study is to examine the effect of Sharia firms and their performance in Indonesia. Sharia is the set of personal and societal behaviour derived from Islam. A firm is included in a sharia firm if it complies with Islamic values. The sample used in this study are firms that are consistently listed on the Shariacompliant Stock Index (ISSI) in the 2012-2018 period. The result shows that Sharia firms have better performance compared to non-Sharia firms. Additionally, Sharia firms with a smaller size of independent commissioners are associated with higher performance. These positive results indicate that Sharia positioning can improve performance and this is empirical evidence that the ethical firm has a significant influence on the performance.

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The role of ethical behavior and entrepreneurial leadership to improve organizational performance

Cited by 21 publications

References 18 publications

Ethical entrepreneurial leadership and organizational trust for organizational sustainability

Ethical entrepreneurial leadership and organizational trust for organizational sustainability

Entrepreneurial Leadership and Organisational Performance of SMEs in Kuwait: The Intermediate Mechanisms of Innovation Management and Learning Orientation

Islamic index, independent commissioner and firm performance

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