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Article

Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM

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School of Management, Jiangsu University, Zhenjiang 212013, Jiangsu, China
2
ISCAL (Instituto Superior de Contabilidade e Administração de Lisboa), Instituto Politécnico de Lisboa, 1069-035 Lisbon, Portugal
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Instituto Universitário de Lisboa (ISCTE-IUL), Business Research Unit (BRU-IUL), 1649-004 Lisbon, Portugal
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Polytechnic Institute of Santarém, School of Management and Technology (ESGTS-IPS), 2001-904 Santarém, Portugal
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Faculty of Business Administration, Iqra University, Karachi 75500, Pakistan
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Department of Mechanical Engineering, Polytechnic Institute of Lisbon, 1959-007 Lisbon, Portugal
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CTS Uninova, 2829-516 Caparica, Portugal
*
Author to whom correspondence should be addressed.
Academic Editor: Ermanno C. Tortia
Sustainability 2021, 13(8), 4361; https://0-doi-org.brum.beds.ac.uk/10.3390/su13084361
Received: 27 February 2021 / Revised: 1 April 2021 / Accepted: 6 April 2021 / Published: 14 April 2021
Entrepreneurial orientation has become an enormously significant construct in the innovation studies literature. Predominantly for SMEs, its role has been widely recognized in almost all regional contexts across the globe. The present study is aimed at investigating the effects of entrepreneurial orientation, transformational leadership and organizational commitment on innovation performance. The data for the present study were collected from 1095 employees working at various levels in SMEs. The present study used partial least square structural equation modeling to examine the constructed hypotheses. The findings suggested the significantly positive direct relationships among entrepreneurial orientations, organizational commitment and innovation performance. Besides, organizational commitment positively mediated the relationships between entrepreneurial orientation and innovation performance. Additionally, this study also found the significant moderation of transformational leadership among entrepreneurship orientation and organizational commitment. Leaders of small and medium-sized enterprises should practice entrepreneurial orientation (innovativeness, proactiveness, and risk-taking) and transformation leadership (articulating a compelling vision, focus on goal achievement, and creative problem solving) to enhance the innovation performance of their firms. Moreover, this study provides a robust mechanism for leaders at SMEs to develop strategies for enhancing the willingness of the firms to bring innovation and offer new products and services. The policymakers should enhance the emotional attachment of employees with their firms, sense of moral obligation to remain with the firm which will, in turn, increase the organizational commitment of employees for innovation performance. The study provides empirical evidence to the resource-based view in the context of SMEs. The study delivers solid theoretical and practical implications to experts, leaders and policymakers. View Full-Text
Keywords: entrepreneurial orientation; innovation performance; organizational commitment; transformational leadership; small and medium-sized enterprises entrepreneurial orientation; innovation performance; organizational commitment; transformational leadership; small and medium-sized enterprises
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MDPI and ACS Style

Iqbal, S.; Moleiro Martins, J.; Nuno Mata, M.; Naz, S.; Akhtar, S.; Abreu, A. Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM. Sustainability 2021, 13, 4361. https://0-doi-org.brum.beds.ac.uk/10.3390/su13084361

AMA Style

Iqbal S, Moleiro Martins J, Nuno Mata M, Naz S, Akhtar S, Abreu A. Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM. Sustainability. 2021; 13(8):4361. https://0-doi-org.brum.beds.ac.uk/10.3390/su13084361

Chicago/Turabian Style

Iqbal, Shuja, José Moleiro Martins, Mário Nuno Mata, Shumaila Naz, Shamim Akhtar, and António Abreu. 2021. "Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM" Sustainability 13, no. 8: 4361. https://0-doi-org.brum.beds.ac.uk/10.3390/su13084361

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