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Abstract
This study aims to analyze the effect of entrepreneurial leadership on organizational performance by considering the mediating role of dynamic capability in the context of the digital era. This study employs a quantitative approach utilizing structural equation modeling (SEM) based on Partial Least Squares (PLS). A survey was used to gather data from 385 respondents from top management or owners of Small and Medium Enterprises (SMEs) Healthcare Clinics in Indonesia. Data was processed using SmartPLS software version 3.0. The results showed that entrepreneurial leadership has a positive and significant influence on dynamic capability (path coefficient = 0.777; t-statistic = 26.792; p = 0.000), entrepreneurial leadership has a positive and important impact on organizational performance (path coefficient = 0.306; t-statistic = 5.232; p = 0.000), dynamic capability has a positive and significant influence on organizational performance (path coefficient = 0.510; t-statistic = 8.994; p = 0.000),. In addition, dynamic capability acts as a mediator that strengthens the influence of entrepreneurial leadership on organizational performance, highlighting the importance of adaptation and innovation to face the challenges of the digital era. This study provides insights for clinical SME leaders to develop entrepreneurial leadership skills that can drive the organization's dynamic capabilities and improve performance amid the dynamics of the digital era. This study contributes to the literature on entrepreneurial leadership and dynamic capabilities by highlighting their relationship to organizational performance in the context of SME Clinics in digital transformation.
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References
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- Permana, A. & Ellitan, L., 2020. The Role of Dynamic Capability in Mediating the Effects of Environmental Dynamism and Managerial Capabilities on Firm Performance: A Preliminary Study. Journal of Entrepreneurship & Business, 1(2), pp. 70-83.
- Rashidirad, M. & Salimian, H., 2020. SMEs’ dynamic capabilities and value creation: the mediating role of competitive strategy. European Business Review, 32(4), pp. 591-613.
- Rokhanawati, D., Sabihaini & Kristanto, H., 2024. The Effect of Entrepreneurship Leadership on Business Performance Mediated by Competitive Advantage and Dynamic Capability in Batik Giriloyo MSMEs. West Science Journal Economic and Entrepreneurship, 2(1), p. 86~101.
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- Yahaya, M. L., Murtala, Z. A. & Onukwube, H. N., 2019. Partial Least Squares (PLS - Partial Least Squares (PLS-SEM): A Note For Beginners. International Journal of Environmental Studies and Safety Research, 4(4), pp. 1-30.
References
Ba Le, P. & Lei, H., 2019. Determinants of innovation capability: transformational leadership roles, knowledge sharing, and perceived organizational support. Journal of Knowledge Management.
Ciampi, F. et al., 2021. Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation. Journal of Business Research, Volume 123, pp. 1-13.
Fontana, A. & Musa, S., 2017. The impact of entrepreneurial leadership measurement validation on innovation management and its measurement validation. International Journal of Innovation Science, 9(1).
Hair, J. F., Black, W. C., Babin, B. J. & Anderson, R. E., 2014. Multivariate Data Analysis: Pearson New International Edition. United States Of America: Pearson Education Limited.
Migdadi, M. M., 2022. Knowledge management processes, innovation capability, and organizational performance. International Journal of Productivity and Performance Management, 71(1), pp. 182-210.
Nguyen, H. T. N., Han, J. W. & Pham, H. C., 2024. Point effect of entrepreneurship and dynamic capabilities on firm performance: an empirical investigation among ICT-SMEs. Baltic Journal of Management, 19(1), pp. 85-102.
Nguyen, P. V. et al., 2021. The impact of entrepreneurial leadership on SMEs’ performance: the mediating effects of organizational factors. Heliyon, Volume 7, pp. 1-13.
Paudel, S., (2019). Entrepreneurial leadership and business performance: Effect of organizational innovation and environmental dynamism. South Asian Journal of Business Studies, 8(3), pp. 348–369.
Permana, A. & Ellitan, L., 2020. The Role of Dynamic Capability in Mediating the Effects of Environmental Dynamism and Managerial Capabilities on Firm Performance: A Preliminary Study. Journal of Entrepreneurship & Business, 1(2), pp. 70-83.
Rashidirad, M. & Salimian, H., 2020. SMEs’ dynamic capabilities and value creation: the mediating role of competitive strategy. European Business Review, 32(4), pp. 591-613.
Rokhanawati, D., Sabihaini & Kristanto, H., 2024. The Effect of Entrepreneurship Leadership on Business Performance Mediated by Competitive Advantage and Dynamic Capability in Batik Giriloyo MSMEs. West Science Journal Economic and Entrepreneurship, 2(1), p. 86~101.
Sawaean, F. A. & Ali, K. A. M., 2019. The impact of entrepreneurial leadership and learning orientation on organizational performance of SMEs: The mediating role of innovation capacity. Management Science Letters, 10(2), pp. 369–380.
Seo, Y. W. & Lee, Y. H. (2019). Effects of internal and external factors on business performance of startups in South Korea: the engine of new market dynamics. SAGE Publications Inc International Journal of Engineering Business Management, Volume 11, pp. 1–12.
Wilden, R. et al., 2019. The role of cocreation and dynamic capabilities in service provision and performance: A configurational study. Industrial Marketing Management, Volume 78, pp. 43-57.
Yahaya, M. L., Murtala, Z. A. & Onukwube, H. N., 2019. Partial Least Squares (PLS - Partial Least Squares (PLS-SEM): A Note For Beginners. International Journal of Environmental Studies and Safety Research, 4(4), pp. 1-30.