Unleashing employees’ entrepreneurial potential in Saudi start-up companies: The role of psychological empowerment as a mediator between entrepreneurial leadership and employees’ entrepreneurial behavior

Abstract

The business market through which start-ups operate has become intensively competitive in recent years. Developing employees’ entrepreneurial behavior is thus a priority for thriving in such conditions. This research attempts to explore the antecedent of such behavior by testing a research model that incorporates the linkages between entrepreneurial leadership, psychological empowerment, and employees' entrepreneurial behavior. The SEM analysis performed on a sample of 256 employees working in Saudi start-up companies showed that entrepreneurial leadership has no direct effect on employees’ entrepreneurial behavior; instead, the impact turned out to be indirect through enhancing employees’ psychological empowerment. The study holds several implications for researchers and practitioners in the field.