Impact of Entrepreneurial Leadership on Firm Performance: The Mediating Role of Firm Competitiveness

Abstract

The role of entrepreneurial leadership in nurturing competitiveness in organizations, as a result of which company performance is improved, is examined in this study. It thus explores how entrepreneurial leadership enables a firm to be competitive in order to bring the required performance in the SMEs of the main cities of Punjab. Previously the relationship among these specific variables is not analyzed in SMEs. The study relied on the complexity leadership theory framework, because it provided analytical tools for understanding the function of leaders in emergent collaborative environments. The unit of analysis of this study is CEO/owners/firm’s managers of SMEs. The data collection is done from various SMEs of Punjab’s main cities i-e Lahore, Sialkot and Gujarat through the distribution of 200 questionnaires via emails using convenience sampling technique. Hence to estimate the relationships among the EL, FC an FP in the SMEs under the current study SEM PLS is used. This study also contributes to the literature as it suggests that as a competitive firm enhances the relation between EL and FP. Moreover the results also confirm previous findings which say that EL promotes FP. The results suggest that FC is important component for enhancing the performances of the firms and it is a main element that mediates the relationship of EL and FP. Thus SMEs should be more focused on developing FC.