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

10.28945/4887 ◽  
2021 ◽  
Vol 16 ◽  
pp. 459-489
Author(s):  
Fahad Awad Sawaean ◽  
Khairul A. M. Ali ◽  
Ahmad Awad Alenezi

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.

10.28945/4743 ◽  
2021 ◽  
Vol 16 ◽  
pp. 147-172
Author(s):  
Fahad Sawaean ◽  
Khairul A. M. Ali

Aim/Purpose: This paper aimed to examine the impact of learning orientation on organizational performance of small and medium enterprises (SMEs) via the mediating role of total quality management (TQM) practices and the moderating role of innovation culture. Background: SMEs’ organizational performance in developing countries, particularly in Kuwait, remains below expectation due to increasing competition and inadequate managerial practices that negatively impact their performance. Although several studies had revealed a significant effect of learning orientation on SMEs’ performance, the direct impact of learning orientation on their performance is still unclear. Thus, the link between learning orientation and organizational performance remains inconclusive and requires further examination. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather the data in a specific period. The data were collected by distributing a survey questionnaire to the owners and Chief Executive Officers (CEOs) of Kuwaiti SMEs using online and on-hand instruments with 384 useable data obtained. Furthermore, the partial least square-structural equation modeling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: This study bridged the significant gap in the role of learning orientation on SMEs’ performance in developing countries, specifically Kuwait. In this sense, a conceptual model was introduced, comprising a learning orientation, TQM practices, innovation culture, and organizational performance. In addition, this study confirmed the significant influence of TQM practices and innovation culture as intermediate variables in strengthening the relationship between learning orientation and organizational performance, which has not yet been verified in Kuwait. Findings: The results in this study revealed that learning orientation had a significant impact on organizational performance of SMEs in Kuwait. It could be observed that TQM practices play an important role in mediating the relationship between learning orientation and performance of SMEs, as well as that innovation culture plays an important moderating role in the same relation. Recommendations for Practitioners: This study provided a framework for the decision-makers of SMEs on the significant impact of the antecedents that enhanced the level of organizational performance. Hence, owners/CEOs of SMEs should improve their awareness and knowledge of the importance of learning orientation, TQM practices, and innovation culture since it could significantly influence their performance to achieve success and sustainability when adopted and managed systematically. The CEOs should also consider building an innovation culture in the internal environment, which enables them to transform new knowledge and ideas into innovative methods and practices. Recommendation for Researchers: The results in this study highlighted the mediating effect of TQM practices on the relationship between learning orientation (the independent variable) and organizational performance (the dependent variable) of SMEs and the moderating effect of innovation culture in the same nexus. These relationships were not extensively addressed in SMEs and thus required further validation. Impact on Society: This study also influenced the management strategies and practices adopted by entrepreneurs and policymakers working in SMEs in developing countries, which is reflected in their development and the national economy. Future Research: Future studies should apply the conceptual framework of this study and assess it further in other sectors, including large firms in developing and developed countries, to generalize the results. Additionally, other mechanisms should be introduced as significant antecedents of SMEs’ performance, such as market orientation, technological orientation, and entrepreneurial orientation, which could function with learning orientation to influence organizational performance effectively.


2021 ◽  
Vol 14 (1) ◽  
pp. 207-224
Author(s):  
Dhiona Ayu Nani ◽  
Vera Apri Dina Safitri

Manuscript type: Research paper Research aims: This study aims to examine the relationship between the formal management control system (MCS) on organisational performance and innovation. It also evaluates the role of leadership characteristics as the moderating variable between MCS and innovation. Design/Methodology/Approach: This study employs a survey questionnaire, and data collected from business units of Indonesian manufacturing and services firms. The warp partial least squares structural equation modeling (PLS-SEM) approach was employed to analyse the data and test the proposed model. Research findings: The findings demonstrate that: (1) A welldesigned formal MCS can improve organisational performance and innovation; (2) managers with good characteristics such as showing good behaviour through compliance with company rules, involving themselves in subordinates’ activities, and supporting subordinates’ ideas, can improve subordinates’ creativity in producing innovation. Theoretical contribution/Originality: This study expands the existing literature by examining the role of leadership characteristics as a moderating variable between the formal management control system (MCS) and innovation. Practitioner/Policy implications: The findings of this study demonstrate that, for Indonesian firms to compete in globally-competitive markets, they need to implement well-designed formal MCS. For formal MCS to contribute to innovation, managers who demonstrate good leadership characteristics are crucial. Research limitation/Implications: Future research can investigate comparative analyses of different ASEAN countries since different Asian countries have different dominant cultures and values, which may have some impact on MCS, organisational performance and innovation. It may also consider how different types of MCS improve organisational performance and innovation performance.


2019 ◽  
Vol 16 (8) ◽  
pp. 1215-1237
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Ntayi

Purpose Recently, a large body of research has been devoted on the role of trust in shaping different types of transactions, especially in rural financial development. Trust is a set of expectations shared by all those who engage in an exchange. Indeed, the “rule of the game” suggests that no trusting party in a transaction should act opportunistically. Consequently, this study aims to establish the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion of MSMEs in developing countries with a specific focus on rural Uganda. Design/methodology/approach A quantitative survey-based study was used and responses obtained from 379 MSMEs located in northern Uganda were analysed using partial least square-PLS version 3.0. A semi-structured questionnaire was developed from scales and items used in previous studies referenced in internationally recognised journals to elicit responses from the MSMEs. Structural equation modelling was used to test the models to arrive at a final empirical model derived from the data. Findings The authors found evidence that trust enhances mobile money adoption and usage to increase the scope of financial inclusion of MSMEs in developing countries. Moreover, when individual effect was determined, trust also had significant and positive effect on financial inclusion. Thus, the study results imply that trust enhances mobile money adoption and usage to improve the level of financial inclusion of MSMEs in developing countries. Research limitations/implications The study used cross-sectional data to document the relationship between mobile money adoption and usage and financial inclusion and to establish the mediating effect of trust in the relationship. Future research could use relevant longitudinal data to verify other benefits of trust. Practical implications The results present trust as a significant factor for FINTECH financial services marketing and growth. Specifically, data privacy and effectiveness of the mobile telephone network is more likely to help consumers to bridge the gap between participation and non-participation on the mobile money platform. Customers’ data sent over the mobile network of providers should be protected from unnecessary access and usage by Mobile Network Operators (MNOs) staff and unauthorised persons and agents. Data protection protocols should be set by the MNOs to avoid unnecessary access and use of customers’ data. Originality/value Globally, Fintech scholars have examined the role of mobile money in promoting financial inclusion. However, there is insufficient evidence on the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion, especially among rural MSMEs. This study invents a novel direction on the importance of trust in creating transaction efficiency by eliminating opportunism and fraud with in the Fintech ecosystem.


2013 ◽  
Vol 16 (2) ◽  
pp. 199-215 ◽  
Author(s):  
Georgios Angelopoulos ◽  
John A Parnell ◽  
Gregory J Scott

Managers working in South Africa, Peru and the United States were classified as stakeholder- and/or shareholder-oriented along the Perceived Role of Ethics and Social Responsibility (PRESOR) scale. The relationship between stakeholder/shareholder orientation and perceptions of organisational performance was further explored. In South Africa and overall, respondents with both high stakeholder and low shareholder orientations reported the greatest performance satisfaction. In Peru, managers with a high stakeholder orientation reported the greatest satisfaction with organisational performance. A significant link between stakeholder or shareholder orientation and performance satisfaction was not found in the United States, however. Directions for future research are outlined.


2021 ◽  
Vol 19 (1) ◽  
pp. 17-28
Author(s):  
Mounira Hamed-Sidhom ◽  
Nadia Loukil

The paper aims to examine the relationship between International Public Sector Accounting Standards (IPSAS) adoption and the perceived level of corruption in developing countries. It also attempts to inspect the mediating effect of political stability on this relationship. We follow the methodology used by the International Federation of Accountants (IFAC) to assess country adoption status and we apply a panel regression analysis to 57 developing countries over the 2016–2019 period. Our findings suggest that country’s decision to adopt IPSAS cannot shortly lead to a reduction of its corruption perceived level. In addition, we make evidence that the level of corruption does not matter on the relationship between the IPSAS adoption and the corruption perceived level. We find also that political stability, while decreases corruption, doesn’t contribute to enhance the effect of IPSAS adoption on the perceived corruption level. This paper provides insights into the role of IPSAS adoption to countries’ corruption levels. It will be of interest to accounting standard-setters, regulators, and policymakers in countries that are transitioning to or considering International Public Sector Accounting Standards. It will also be of interest to regulators and policymakers, multilateral institutions in their effort to fight corruption


This paper aims to investigate the relationship between entrepreneurial leadership (EL) and creativity in projects. Additionally, the study also examine the mediating effect of innovative work behavior (IWB) and the moderating role of entrepreneurial self-efficacy (ESE). Employing a questionnaire survey, the researcher collected 210 responses. Multiple regression were used to analyze the data. the results of the study demonstrates a positive relationship between EL and creativity in projects. Furthermore, IWB partially mediate the relationship between EL and creativity in projects. the results also suggest that ESE moderates the relationship between EL and IWB. Theoretical and practical implications of the current study were highlighted at the end of the paper.


2018 ◽  
Vol 11 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Laurent Tournois

Purpose Cities from developing countries strive to compete on a global scale and hence try to attract and retain their residents in offering higher liveability. The purpose of this study is to examine the extent to which liveability influences resident’s sense of place and determines residents’ behavioural intentions. Design/methodology/approach A survey was carried out to test the hypotheses using a sample of 362 residents from the city of Dubai (United Arab Emirates). Structural equation modelling and the method suggested by Hayes and Preacher (2010) for mediation analysis were used. Findings Findings show that residents’ preferences for different types of liveability attributes (included in seven dimensions) influence their sense of place that in return shapes their behavioural intentions towards their place of residence. Results also reveal the importance of non-economic attributes of the urban environment. Moreover, residents’ sense of place mediates the relationship between liveability and residents’ behavioural intentions. Research limitations/implications Future research could more deeply investigate the social functioning of a place and particularly the role of place identity, as it is recognized to affect residents’ attitudes and behaviours. In addition, further developments may contribute to the ongoing debate on the relationship between liveability and growth. Practical implications From a public policy standpoint, this study suggests that local authorities need to identify a distinct set of economic and non-economic characteristics that will encourage residents to stay longer in the place they live. As such, enhancing liveability represents a critical strategic initiative for cities from developing countries to make them a great place to live. Originality/value Compared to developed countries’ cities, few attempts have been made to investigate the attitudes of residents towards a place and the role of liveability in the context of emerging countries fast-growing urban areas. In addition, findings revealed the importance of place-based meanings, i.e. sense of place, which played a pivotal role in the development of place-protective behaviours.


2012 ◽  
Vol 40 (4) ◽  
pp. 649-655 ◽  
Author(s):  
Jian An Zhong ◽  
Zhong-Liang Cao ◽  
Yuanyuan Huo ◽  
Ziguang Chen ◽  
Wing Lam

The associations between neuroticism, employees' preference of emotional labor strategies, and job feedback were investigated using a cross-sectional self-report questionnaire survey. The mediating effect of job feedback was tested using regression analysis with a sample of 168 nurses. Results showed that neuroticism was associated more with surface acting, and less with both deep acting and job feedback; job feedback fully mediated the relationship between neuroticism and deep acting. Implications and directions for future research and practices are suggested.


2014 ◽  
Vol 5 (2) ◽  
pp. 162-186 ◽  
Author(s):  
Ling Ling ◽  
Tao Qing ◽  
Peng Shen

Purpose – This paper aims to provide theoretical analysis and empirical study on the relationship between training and organizational commitment; analyze the mediating role of employability and the moderating role of expectation value in their relationship; and draw from both of these to suggest practical implications to organizations aiming to effectively train and retain employees, and for employees themselves. Design/methodology/approach – First, the paper reviews the literature regarding training, employability, organizational commitment and expectation value. Second, it develops a theoretical model linking training, employability, organizational commitment and expectation value, and proposes a series of research hypotheses. Third, drawing on samples of 405 Chinese employees, it tests hypotheses based on a series of measurement and statistical analyses. Last, it discusses the analysis results and puts forward related suggestions for management practice. Findings – The paper tests and verifies the applicability of Western training and employability scales in China from a self-perception perspective. Training is positively related to organizational commitment and employability. Further, employability partly mediates the relationship between training and organizational commitment, and expectation value moderates the relationship between employability and organizational commitment. Research limitations/implications – First, the cross-sectional design prevents the making of causal statements. Future research should adopt an experimental (quasi experimental) research method or longitudinal research to study the casual relationship between variables. Second, data are from employees’ self-report, giving rise to concern about possible common source bias. Future research should allow supervisors to rate employees’ employability or provide evaluation of employees’ expectation value to collect multi-source data. Originality/value – The paper first introduces Western scales of training and employability into a Chinese context, and then tests and verifies the two scales' applicability in China. To explain the action mechanism of training to the employee – organizational commitment in a boundaryless career, the paper constructs a moderate mediation model to test the direct effect of training on organizational commitment, the mediating effect of employability and the moderating effect of expectation value. This study complements past research by investigating both the mediating and moderating mechanisms in training organizational commitment.


The objective of this study was to confirm the mediating effects of learning orientation on the relationship between transformational leadership and employee lifelong learning. To achieve this, we distributed questionnaires to 800 employees, of which 512 valid questionnaires were received. We then employed hierarchical regression analysis to test our hypotheses. Results confirmed that transformational leadership has a positive influence on employee lifelong learning, and that this relationship is mediated by learning orientation. Based on these results, we conclude by making recommendations for both organizational management practices and future research.


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