Impact of Effective Entrepreneurial Leadership Style on Organizational Performance: Critical Review

Abstract

In an increasingly unpredictable and competitively volatile dynamic economy and rapidly changing business environment, organizations are required a new type of management - an entrepreneurial leadership which is significantly differs from the classical business leadership concept in behavioral norms. As a manager, an organization's leader realizes legitimate powers and status authority to effectively solve organizational problems and as an entrepreneurial leader uses the power of personal influence on subordinates. Thus, the entrepreneurial leadership style has more opportunities to effectively manage the organization than just a manager or simply an informal leader with no status authority. SME’s are considered as the fundamental part of nations’ economy and it is imperative to perceive how the role of entrepreneurial leadership may affect on the organizational performance.

Taking this into consideration, the research paper is seeking to examine the relationship of entrepreneurial leadership and organizational performance by quantitative analysis of 87 participants of SME’s in the United Arab Emirates. The study provided an indicative relationship between entrepreneurial leadership variables and organizational performance where the key findings reveal that entrepreneurially mindset leaders benefit more from this style of leadership to improve and enhance robustly their organizational performance.