Effective leaders in entrepreneurial organizations build cultures that lead to high-performance outcomes

Ayman El Tarabishy

Journal of the International Council for Small Business, 2020, vol. 1, issue 3-4, 148-176

Abstract: The two crucial questions within entrepreneurship research are if entrepreneurs affect organizational performance, and if so, what specific strategies are employed by such entrepreneurs that generate high-level performance. This study tested the hypothesis that in entrepreneurial organizations, the culture that leaders construct leads to performance outcomes. Data on leaders’ culture-building actions in 31 entrepreneurial firms were obtained from organization members. The measure of culture, using a well-validated assessment questionnaire, was obtained from the leaders. A year later, these chief executive officer leaders provided performance data. The study then tested whether the culture mediated the effects of leaders’ culture-building actions on organizational performance. The mediating analyses conducted to support a causal path, suggesting that in entrepreneurial organizations, it is the entrepreneurial culture, initiated by the leader’s actions, that mediates the enhancement of organizational performance outcomes.

Date: 2020
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DOI: 10.1080/26437015.2020.1850154

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