Moderating role of leadership behaviour among entrepreneurial orientation, social capital, global mindset and firm international performance

Abstract

Small and Medium Enterprises (SMEs) play an important role to strengthen the total exports of developing countries. These exports depend on firm international performance. This study empirically examined the major factors of firm international performance which attained researcher’s attention in previous studies. Among those factors include entrepreneurial orientation, social capital, and global mindset. This study also investigated the moderating role of leadership behavior on the relationship between entrepreneurial orientation, social capital, global mindset and firm international performance in the sports industry of Pakistan. A structured questionnaire representing dimensions related to entrepreneurial orientation, social capital, global mind set, leadership behavior and firm international performance was designed. Data were collected using a cross-sectional study, whereby 550 questionnaires were randomly distributed and 320 were successfully collected through personal administered method. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test six hypotheses. This study found that entrepreneurial orientation, social capital, and global mindset are high impacting independent variables in a relationship with firm international performance. Furthermore, leadership behavior has a strong moderating effect on the paths between entrepreneurial orientation, social capital, global mindset and firm international performance. The study also contributed to the theory as it extended Resource Based View (RBV) and Contingency Theory perspective. Policy-makers should encourage firms to improve their entrepreneurial orientation, social capital and global mindset which may increase exports of Pakistan sports industry to all over the world. Lastly, the scope of the study is limited to moderating effect of leadership behavior on entrepreneurial orientation, social capital, and global mindset in sports industry only. Future research are suggested to select the data from other exporting industries by applying longitudinal study and undertake other moderators such as competitive structure, absorptive capacity, or environmental dynamism

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