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Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs

Author

Listed:
  • Shafique Ur Rehman

    (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia)

  • Anam Bhatti

    (Universiti Utara Malaysia)

  • Naveed Iqbal Chaudhry

    (University of the Punjab, Gujranwala Campus)

Abstract

Purpose The objective of this study is to see the mediating effect of innovative culture and organizational learning between leadership styles and organizational performance in Malaysian SMEs. Design/methodology/approach Questionnaires were used to collect data from owners/managers and 950 questionnaires distributed by using postal and email strategy. Out of 950, only 409 questionnaires returned back, 25 questionnaires have missing values and eliminated from a sample, and only 384 questionnaires were used for final analysis. Findings Findings reveal that leadership styles have a significant influence on organizational learning, innovative culture, and organizational performance. Innovative culture and organizational learning have a significant influence on organizational performance. Moreover, innovative culture and organizational learning significantly mediate between leadership styles and organizational performance. Practical implications In practical term, the current study contributes for managers/owners in SMEs to focus leadership styles with innovative culture and organizational learning in their decision making if they want to enhance their organizational performance. Research originality This study is one of the pioneer studies that test leadership styles at third-order with the combination of two mediating variables innovative culture and organizational learning with organizational performance.

Suggested Citation

  • Shafique Ur Rehman & Anam Bhatti & Naveed Iqbal Chaudhry, 2019. "Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-24, December.
    • Handle: RePEc:spr:jglont:v:9:y:2019:i:1:d:10.1186_s40497-019-0159-1
    DOI: 10.1186/s40497-019-0159-1
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    References listed on IDEAS

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    Cited by:

    1. Mai Ngoc Khuong & Do Thanh Tung & Thai Hoang Quoc, 2022. "Review of Empirical Research on Leadership and Firm Performance," SAGE Open, , vol. 12(3), pages 21582440221, July.
    2. Kraus, Sascha & Rehman, Shafique Ur & García, F. Javier Sendra, 2020. "Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    3. Opeyemi Olunike Joel & Chinoyen Love Moses & Ebeguki Edith Igbinoba & Maxwell Ayodele Olokundun & Odunayo Paul Salau & Oluwatunmise Ojebola & Olufunke P. Adebayo, 2023. "Bolstering the Moderating Effect of Supervisory Innovative Support on Organisational Learning and Employees’ Engagement," Administrative Sciences, MDPI, vol. 13(3), pages 1-12, March.
    4. Lin Liu & Hsing-Wei Tai & Kuo-Tai Cheng & Chia-Chen Wei & Chang-Yen Lee & Yen-Hung Chen, 2022. "The Multi-Dimensional Interaction Effect of Culture, Leadership Style, and Organizational Commitment on Employee Involvement within Engineering Enterprises: Empirical Study in Taiwan," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    5. Ngoc Khuong Mai & Thanh Tung Do & Dieu Trang Ho Nguyen, 2023. "Leadership Competencies, Organizational Learning And Organizational Performance Of Tourism Firms: Evidence From A Developing Country," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 29(1), pages 1-14, January.
    6. Shafique Ur Rehman & Stefano Bresciani & Dorra Yahiaoui & Elisa Giacosa, 2022. "Environmental sustainability orientation and corporate social responsibility influence on environmental performance of small and medium enterprises: The mediating effect of green capability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 1954-1967, November.
    7. Eka Safitri Apriliani Isa & Muafi, 2022. "Human Capital, Organizational Learning and Their Effects on Innovation Behavior and Performance of Banking Employees," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 01-18, January.
    8. Daniel Amente KENEA, 2020. "The Role Of Innovation Strategy In Improving Organizational Performance And Productivity: Focus On Heineken Beverage Industry, Ethiopia," Annals of the University of Craiova for Journalism, Communication and Management, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 6(1), pages 31-56, December.
    9. Wei Hsu & Yen-Chi Chao & Chih-Hao Yang, 2023. "Factors influencing home care workers’ loyalty in long-term nursing services," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    10. Shafique Ur Rehman & Anam Bhatti & Rapiah Mohamed & Hazeline Ayoup, 2019. "The moderating role of trust and commitment between consumer purchase intention and online shopping behavior in the context of Pakistan," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-25, December.

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    More about this item

    Keywords

    Leadership styles; Innovative culture; Organizational learning; Organizational performance;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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