IDEAS home Printed from https://ideas.repec.org/a/spr/jglont/v9y2019i1d10.1186_s40497-019-0159-1.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40497-019-0159-1
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40497-019-0159-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Klein, Andrew S & Wallis, Joseph & Cooke, Robert A., 2013. "The impact of leadership styles on organizational culture and firm effectiveness: An empirical study," Journal of Management & Organization, Cambridge University Press, vol. 19(3), pages 241-254, May.
    2. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    3. Wan Mohd Nazdrol bin Wan Mohd Nasir & Abdullah Al Mamun & John Breen, 2017. "Strategic Orientation and Performance of SMEs in Malaysia," SAGE Open, , vol. 7(2), pages 21582440177, June.
    4. Jaramillo, Fernando & Mulki, Jay Prakash & Marshall, Greg W., 2005. "A meta-analysis of the relationship between organizational commitment and salesperson job performance: 25 years of research," Journal of Business Research, Elsevier, vol. 58(6), pages 705-714, June.
    5. Henri, Jean-Francois, 2006. "Management control systems and strategy: A resource-based perspective," Accounting, Organizations and Society, Elsevier, vol. 31(6), pages 529-558, August.
    6. Mohammed Al-Malki & Wang Juan, 2018. "Leadership Styles and Job Performance: a Literature Review," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 3(3), pages 40-49, March.
    7. Shafique-ur Rehman & Rapiah Mohamed & Hazeline Ayoup, 2019. "The mediating role of organizational capabilities between organizational performance and its determinants," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-23, December.
    8. Podsakoff, Philip M. & Bommer, William H. & Podsakoff, Nathan P. & MacKenzie, Scott B., 2006. "Relationships between leader reward and punishment behavior and subordinate attitudes, perceptions, and behaviors: A meta-analytic review of existing and new research," Organizational Behavior and Human Decision Processes, Elsevier, vol. 99(2), pages 113-142, March.
    9. Roslan Abdul Aziz & Mohd Hussin Abdullah & Anas Tajudin, 2013. "The Effect of Leadership Styles on the Business Performance of SMEs in Malaysia," International Journal of Economics, Business and Management Studies, Online Science Publishing, vol. 2(2), pages 45-52.
    10. Luliya Teeratansirikool & Sununta Siengthai & Yuosre Badir & Chotchai Charoenngam, 2013. "Competitive strategies and firm performance: the mediating role of performance measurement," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 62(2), pages 168-184, January.
    11. Tabassum Riaz & Muhammad Ramzan & Hafiz Muhammad Ishaq & Muhammad Umair Akram, 2012. "Transformational leadership and employees career salience; an empirical study conducted on banks of Pakistan," E3 Journal of Business Management and Economics., E3 Journals, vol. 3(5), pages 0190-0196.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nuraddeen Abubakar Nuhu & Kevin Baird & Sophia Su, 2022. "The association between the interactive and diagnostic use of financial and non-financial performance measures with individual creativity: The mediating role of perceived fairness," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(3), pages 371-402, September.
    2. Erkki K. Laitinen & Aapo Länsiluoto & Soila Salonen, 2016. "Interactive budgeting, product innovation, and firm performance: empirical evidence from Finnish firms," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(4), pages 293-322, November.
    3. Vincent K. Chong & Lokman Mia & John Sands & Zhichao Alex Wang, 2023. "The effect of nonfinancial performance measures, absorptive capacity, and organizational learning on innovation performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(2), pages 201-233, June.
    4. Henrique Faverzani Drago & Gilnei Luiz Moura & Luciana Santos Costa Vieira Silva & Claudimar Pereira Veiga & Fabíola Kaczam & Luciana Peixoto Santa Rita & Wesley Vieira Silva, 2023. "Reviewing the relationship between organizational performance, dynamic capabilities and strategic behavior," SN Business & Economics, Springer, vol. 3(1), pages 1-22, January.
    5. Shafique-ur Rehman & Rapiah Mohamed & Hazeline Ayoup, 2019. "The mediating role of organizational capabilities between organizational performance and its determinants," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-23, December.
    6. Muhammad Haseeb & Marcin Lis & Ilham Haouas & Leonardus WW Mihardjo, 2019. "The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    7. Di Foggia, Giacomo, 2021. "Energy-Efficient Products and Competitiveness in the Manufacturing Sector," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(1).
    8. Juan Manuel Ramon-Jeronimo & Raquel Florez-Lopez & Pedro Araujo-Pinzon, 2019. "Resource-Based View and SMEs Performance Exporting through Foreign Intermediaries: The Mediating Effect of Management Controls," Sustainability, MDPI, vol. 11(12), pages 1-26, June.
    9. Zhenia Tahmasebinia & Aliakbar Jokar & Amir Mohebi & Sogand Fardmehregan & Mehdi Beigi & Foozhan Tahmasebinia, 2022. "A Study on the Impact of Market and Strategic Orientations on Business Performance by Emphasizing the Role of Innovation as a Mediator," Business Management and Strategy, Macrothink Institute, vol. 13(2), pages 67-84, December.
    10. Cheng, Cheng-Feng & Chang, Man-Ling & Li, Chu-Shiu, 2013. "Configural paths to successful product innovation," Journal of Business Research, Elsevier, vol. 66(12), pages 2561-2573.
    11. Rajesh Srivastava & Thomas Tang, 2015. "Coping Intelligence: Coping Strategies and Organizational Commitment Among Boundary Spanning Employees," Journal of Business Ethics, Springer, vol. 130(3), pages 525-542, September.
    12. Mohammad Ali Yamin, 2021. "Investigating the Drivers of Supply Chain Resilience in the Wake of the COVID-19 Pandemic: Empirical Evidence from an Emerging Economy," Sustainability, MDPI, vol. 13(21), pages 1-16, October.
    13. Hall, Matthew, 2010. "Accounting information and managerial work," LSE Research Online Documents on Economics 28539, London School of Economics and Political Science, LSE Library.
    14. Algarni, Mohammad A. & Ali, Murad & Leal-Rodríguez, Antonio L. & Albort-Morant, Gema, 2023. "The differential effects of potential and realized absorptive capacity on imitation and innovation strategies, and its impact on sustained competitive advantage," Journal of Business Research, Elsevier, vol. 158(C).
    15. Lepori, Benedetto & Montauti, Martina, 2020. "Bringing the organization back in: Flexing structural responses to competing logics in budgeting," Accounting, Organizations and Society, Elsevier, vol. 80(C).
    16. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    17. Chen, Clara Xiaoling & Lill, Jeremy B. & Lucianetti, Lorenzo, 2023. "Performance measurement system diversity and product innovation: Evidence from longitudinal survey data," Accounting, Organizations and Society, Elsevier, vol. 111(C).
    18. Abdessamad Dibi & Hamid Amifi, 2023. "Hidden cost-performance control, an innovative managerial practice for more resilient organizations [Le contrôle de gestion des coûts-performance cachés, une pratique managériale innovante pour des," Post-Print hal-04569445, HAL.
    19. Gabriel Aunde Akinbode & Oni Bamikole Fagbohungbe, 2012. "Leadership and Organizational Factors as Predictors of Employees Organisational Commitment in Nigeria: An Empirical Analysis," Business and Management Research, Business and Management Research, Sciedu Press, vol. 1(2), pages 69-87, June.
    20. repec:dau:papers:123456789/10751 is not listed on IDEAS
    21. Abecassis-Moedas, Celine & Sguera, Francesco & Ettlie, John E., 2016. "Observe, innovate, succeed: A learning perspective on innovation and the performance of entrepreneurial chefs," Journal of Business Research, Elsevier, vol. 69(8), pages 2840-2848.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jglont:v:9:y:2019:i:1:d:10.1186_s40497-019-0159-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.