Impact of Design Leadership on Organization Performance: Role of Emotional Intelligence and Employee Work Engagement

Abstract

In this ever-evolving era of digitalization and globalization, organizations are always seeking ways to gain competitive advantage by brining innovation. Leaders in organizations are vital in bringing innovation and engaging employees to their work to increase productivity. Among other leadership styles, design leadership is one of novel topic that focus to use innovation among team to gain competitive advantage. Noticing this, this study investigates the relationship between design leadership (DL) and organizational performance (OP) in Pakistani SMEs, focusing on the mediating role of employee work engagement (EWE) and the moderating effect of emotional intelligence (EI). Employing the Resource-Based View (RBV) theory, it explores how DL enhances innovation and subsequently improves OP. The findings reveal a significant positive impact of DL on OP. Additionally, the study highlights that leaders' innovative behavior positively impacts various aspects of organizational performance, such as services, processes, and products. This underscores the importance of DL as a strategic resource for meeting customer needs and generating value. Despite its contributions, the study has limitations. It focuses solely on Pakistani SMEs, suggesting the need for future research to consider different countries to enhance generalizability. The use of a cross-sectional method also indicates that a longitudinal survey could provide a deeper understanding of how DL and innovation strategies influence OP over time. Furthermore, cultural context and the inclusion of employees' perspectives could offer more comprehensive insights. The study offers practical implications for SME leaders and policymakers. It provides empirical evidence on utilizing DL to drive innovation and improve performance. By prioritizing DL capabilities and fostering employee engagement, organizations can achieve superior outcomes. The research also opens avenues for exploring how DL influences specific x dimensions of OP, such as sustainability and market competitiveness, particularly in developing countrie