Linking Transformational Leadership and Firm Performance: The Role of Entrepreneurial Orientation ()
ABSTRACT
This study aims to analyze the mediating role of entrepreneurial
orientation on the relation between transformational leadership and firm
performance. A survey-based quantitative study was carried out with Portuguese
SMEs’ textile and clothing industry executive directors for which the
questionnaire was adopted from different
published sources. Data analysis was performed through the structural
equation model (SEM). The findings demonstrated a positive and significant
relationship between transformational leadership and entrepreneurial orientation and between entrepreneurial
orientation and firm performance. On the other hand, no evidence was
found that transformational leadership is a variable that influences firm
performance. Nevertheless, it was possible to prove the mediating effect of
entrepreneurial orientation on the relationship
between transformational leadership and firm performance. These findings
highlight the catalyst role of entrepreneurial orientation, leveraging
transformational leadership as antecedents of firm performance. These findings
are valuable inputs for managers and public entities. In the future, the Portuguese SME’s textile and clothing industry must
intensify its involvement in the digital economy, allowing transformational
leadership to add value to firm performance using innovative, proactive, and
risk-taking digital services.
Share and Cite:
Leite, C. and Rua, O. (2022) Linking Transformational Leadership and Firm Performance: The Role of Entrepreneurial Orientation.
Open Journal of Business and Management,
10, 1900-1922. doi:
10.4236/ojbm.2022.104098.