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The Role of Participatory Leadership and Employee Innovative Behavior on SMEs’ Endurance

Year: 2023

Type: article

Abstract: Small and medium-sized enterprises (SMEs) have struggled to survive during the COVID-19 crisis. The factors that contributed to their survival during the period deserve to be investigated. Drawing on social-exchange theory, this study aims to explore the mediating effect of participative leadership on the relationship between employee work innovative behavior (EWIB) and the survival of SMEs after the emergence of the COVID-19 pandemic. A questionnaire survey was used to collect data from 390 managers randomly selected from 114 medium-sized enterprises in Saudi Arabia. Structural equation modeling (SEM) was used to examine the hypothesized relationships between the research variables. The results of the study indicate a significant and positive association between EWIB and participatory leadership. There is a positive and important effect of both participatory leadership and EWIB on the endurance of SMEs. Participatory leadership had a partial mediating effect on the relationship between EWIB and the SMEs’ endurance during the COVID-19 pandemic period. The study sheds light on the importance of the innovative behavior of the workers and the participatory leadership for the survival and continuity of SMEs in times of crisis similar to COVID-19. The study’s findings provide suggestions for SMEs’ managers regarding adopting a participatory leadership style to develop employees’ innovative behavior and ensure the enterprise’s endurance.

Source: Sustainability

DOI: 10.3390/su15032740

Authors: Ghadah Alarifi, Nawal Abdalla Adam

Institution: Princess Nourah bint Abdulrahman University

Language: English

Topic: Employee Performance and Leadership

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,447