Entrepreneurial leadership in IT SMEs: scale validation and outcomes assessment

Purpose: This empirical paper attempted to validate the entrepreneurial leadership (EL) scale of Musa and Fontana (2014) in the Pakistani context. Then, it examined the link of EL with employees’ Innovative Work Behavior (IWB) during four phases of the innovation process:(Idea exploration, generation, realization and implementation), and in turn with organizational performance (OP).
Design/methodology/approach: Using a questionnaire, two separate samples were utilized in this study, 139 and 304 respondents. The first was used to validate the EL scale and the second was used to test the model of EL leading to IWB and resulting in OP. Data were examined using Structural Equation Modelling in two steps (i) CFA and (ii) SEM respectively.
Findings: The 24-item and four-dimensional Entrepreneurial leadership scale created by Musa and Fontana’s (2014), was revised into a 16-item and three-dimensional EL scale, in the Pakistani context. The results revealed that EL has a positive effect on IWB, which in turn has a positive effect on OP. However, the results show that the effect of EL on IWB and the effect of IWB on OP will change according to each innovation process phase.
Research implications: This study establishes an empirical relationship between four sub-dimensions of EL with IWB during each phase of the innovation process.
Practical implications: Investigating the relation between EL dimensions and IWB throughout the four phases of the innovation process, will help managers in the IT SME sector to understand which dimension of EL should be highlighted in each phase of the innovation process to advance employees’ IWB.
Originality/value: This study contributes to the literature by validating EL Scale in the context of Pakistan. This study is among the pioneer that link between the EL as a multi-dimensional measure with employees’ IWB during various phases of the innovation process.