IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v12y2023i3p138-149.html
   My bibliography  Save this article

Leadership Styles And Sustainable Competitive Performance In Pakistani Smes: An Industry 4.0 Perspective

Author

Listed:
  • DR. ALI RAZA

    (Department of Business Administration, Sukkur IBA University, Sukkur, Pakistan)

  • DR. SHEEMA MATLOOB

    (School of Management, Universiti Sains Malaysia, Penang, 11800, Malaysia)

  • DR. MUZAFAR HUSSAIN SHAH

    (Department of Business Administration, Newports Institute of communication and economics, Karachi, Pakista)

  • DR. IRSHAD HUSSAIN SARKI

    (NCBA&E Campus Rahim Yar Khan, Pakistan)

Abstract

Previous research has primarily concentrated on the technological and operational aspects of Industry 4.0 in SMEs, leaving a significant gap in our understanding of the leadership's role in this context. This article aforesaid gap by empirically investigating impact of entrepreneurial leadership, transformational leadership, transactional leadership, and ethical leadership on the sustainable competitive performance of Small and Medium-sized Enterprises (SMEs) in Pakistan within the context of Industry 4.0. The study adopts a quantitative approach and collects data from Pakistani SMEs sector, including manufacturing sports, and textiles, using purposive sampling. A total of 500 questionnaires were distributed. The study's findings reveal that entrepreneurial leadership and ethical leadership significantly influence organizational learning. Furthermore a significant relationship is observed between organizational learning and sustainable competitive performance. However, the study does not find a significant relationship between transactional leadership and organizational learning. Moreover the research highlights a significant mediating relationship between organizational learning and the impact of entrepreneurial leadership, ethical leadership, and transformational leadership on sustainable competitive performance. However, transactional leadership does not exhibit a significant mediating effect. The study's contributions to the existing literature on Industry 4.0 are valuable as they shed light on the role of leadership styles in the context of SMEs in Pakistan. In the era of Industry 4.0, where technological advancements are transforming industries, understanding the impact of leadership on sustainable competitive performance is crucial. This research offers insights into which leadership styles are most effective in this rapidly changing landscape.

Suggested Citation

  • Dr. Ali Raza & Dr. Sheema Matloob & Dr. Muzafar Hussain Shah & Dr. Irshad Hussain Sarki, 2023. "Leadership Styles And Sustainable Competitive Performance In Pakistani Smes: An Industry 4.0 Perspective," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 138-149.
    • Handle: RePEc:rfh:bbejor:v:12:y:2023:i:3:p:138-149
    DOI: https://doi.org/10.61506/01.00011
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/492/26
    Download Restriction: no
    File URL: https://bbejournal.com/BBE/article/view/492
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.61506/01.00011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jaroslav Vrchota & Tomas Volek & Martina Novotná, 2019. "Factors Introducing Industry 4.0 to SMES," Social Sciences, MDPI, vol. 8(5), pages 1-10, April.
    2. García-Morales, Víctor Jesús & Jiménez-Barrionuevo, María Magdalena & Gutiérrez-Gutiérrez, Leopoldo, 2012. "Transformational leadership influence on organizational performance through organizational learning and innovation," Journal of Business Research, Elsevier, vol. 65(7), pages 1040-1050.
    3. Maija Renko & Ayman El tarabishy & Alan L. Carsrud & Malin Brännback, 2015. "Understanding and Measuring Entrepreneurial Leadership Style," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(1), pages 54-74, January.
    4. Birasnav, M., 2014. "Knowledge management and organizational performance in the service industry: The role of transformational leadership beyond the effects of transactional leadership," Journal of Business Research, Elsevier, vol. 67(8), pages 1622-1629.
    5. Julian Marius Müller & Daniel Kiel & Kai-Ingo Voigt, 2018. "What Drives the Implementation of Industry 4.0? The Role of Opportunities and Challenges in the Context of Sustainability," Sustainability, MDPI, vol. 10(1), pages 1-24, January.
    6. Hassan Nor-Aishah & Noor Hazlina Ahmad & Ramayah Thurasamy, 2020. "Entrepreneurial Leadership and Sustainable Performance of Manufacturing SMEs in Malaysia: The Contingent Role of Entrepreneurial Bricolage," Sustainability, MDPI, vol. 12(8), pages 1-21, April.
    7. Fakhrul Anwar Zainol & Wan Norhayate Wan Daud & Lawan Shamsu Abubakar & Hasnizam Shaar & Hazianti Abd Halim, 2018. "A Linkage between Entrepreneurial Leadership and SMEs Performance: An Integrated Review," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(4), pages 104-118, April.
    8. Yongbin Zhao & Yuan Li & Soo Hoon Lee & Long Bo Chen, 2011. "Entrepreneurial Orientation, Organizational Learning, and Performance: Evidence from China," Entrepreneurship Theory and Practice, , vol. 35(2), pages 293-317, March.
    9. Mittal, Swati & Dhar, Rajib Lochan, 2016. "Effect of green transformational leadership on green creativity: A study of tourist hotels," Tourism Management, Elsevier, vol. 57(C), pages 118-127.
    10. Sahi, Gurjeet Kaur & Gupta, Mahesh C. & Cheng, T.C.E., 2020. "The effects of strategic orientation on operational ambidexterity: A study of indian SMEs in the industry 4.0 era," International Journal of Production Economics, Elsevier, vol. 220(C).
    11. Ettore Bolisani & Constantin Bratianu, 2018. "The Emergence of Knowledge Management," Knowledge Management and Organizational Learning, in: Emergent Knowledge Strategies, chapter 2, pages 23-47, Springer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mai Ngoc Khuong & Do Thanh Tung & Thai Hoang Quoc, 2022. "Review of Empirical Research on Leadership and Firm Performance," SAGE Open, , vol. 12(3), pages 21582440221, July.
    2. Muhammad Zafar Yaqub & Abdullah Alsabban, 2023. "Industry-4.0-Enabled Digital Transformation: Prospects, Instruments, Challenges, and Implications for Business Strategies," Sustainability, MDPI, vol. 15(11), pages 1-33, May.
    3. Mahmut Kılıç & Orhan Uludağ, 2021. "The Effects of Transformational Leadership on Organizational Performance: Testing the Mediating Effects of Knowledge Management," Sustainability, MDPI, vol. 13(14), pages 1-27, July.
    4. Serdar Çop & Victor Oluwafemi Olorunsola & Uju Violet Alola, 2021. "Achieving environmental sustainability through green transformational leadership policy: Can green team resilience help?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 671-682, January.
    5. Ahmad Ibrahim Aljumah & Mohammed T. Nuseir & Md. Mahmudul Alam, 2021. "Traditional marketing analytics, big data analytics and big data system quality and the success of new product development," Post-Print hal-03538161, HAL.
    6. Yu‐Shan Chen & Xin Yan, 2022. "The small and medium enterprises' green human resource management and green transformational leadership: A sustainable moderated‐mediation practice," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1341-1356, September.
    7. Amin Pourbarkhordari & Er Hua Zhou & Javad Pourkarimi, 2016. "How Individual-focused Transformational Leadership Enhances Its Influence on Job Performance through Employee Work Engagement," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(2), pages 249-249, January.
    8. Algarni, Mohammad A. & Ali, Murad & Leal-Rodríguez, Antonio L. & Albort-Morant, Gema, 2023. "The differential effects of potential and realized absorptive capacity on imitation and innovation strategies, and its impact on sustained competitive advantage," Journal of Business Research, Elsevier, vol. 158(C).
    9. Taleb S. T. Taleb & Norashidah Hashim & Norria Zakaria, 2023. "Entrepreneurial Leadership and Entrepreneurial Success: The Mediating Role of Entrepreneurial Opportunity Recognition and Innovation Capability," Sustainability, MDPI, vol. 15(7), pages 1-17, March.
    10. Talat Islam & Saima Ahmad & Ishfaq Ahmed, 2023. "Linking environment specific servant leadership with organizational environmental citizenship behavior: the roles of CSR and attachment anxiety," Review of Managerial Science, Springer, vol. 17(3), pages 855-879, April.
    11. Robson Mekonnin Shiferaw & Zerihun Ayenew Birbirsa & Shimels Zewdie Werke, 2023. "Entrepreneurial leadership, learning organization and organizational culture relationship: a systematic literature review," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-20, December.
    12. Martín-Rojas, Rodrigo & Garrido-Moreno, Aurora & García-Morales, Víctor J., 2023. "Social media use, corporate entrepreneurship and organizational resilience: A recipe for SMEs success in a post-Covid scenario," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    13. Farzana Riva & Solon Magrizos & Mohammad Rabiul Basher Rubel, 2021. "Investigating the link between managers' green knowledge and leadership style, and their firms' environmental performance: The mediation role of green creativity," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3228-3240, November.
    14. Maria Polorecka & Jozef Kubas & Pavel Danihelka & Katarina Petrlova & Katarina Repkova Stofkova & Katarina Buganova, 2021. "Use of Software on Modeling Hazardous Substance Release as a Support Tool for Crisis Management," Sustainability, MDPI, vol. 13(1), pages 1-15, January.
    15. Wunhong Su & Liuzhen Zhang & Chao Ge & Shuai Chen, 2022. "Association between Internal Control and Sustainability: A Literature Review Based on the SOX Act Framework," Sustainability, MDPI, vol. 14(15), pages 1-30, August.
    16. Ikramul Hasan & M. Nazmul Islam, 2022. "Leadership instills organizational effectiveness: a viewpoint on business organizations," SN Business & Economics, Springer, vol. 2(3), pages 1-18, March.
    17. Bjekić Radmila & Jelača Maja Strugar & Marić Slobodan, 2019. "The Importance of Active Leadership Style for Organizational Innovativeness," Economic Themes, Sciendo, vol. 57(4), pages 481-495, December.
    18. Srivastava, Deepak Kumar & Kumar, Vikas & Ekren, Banu Yetkin & Upadhyay, Arvind & Tyagi, Mrinal & Kumari, Archana, 2022. "Adopting Industry 4.0 by leveraging organisational factors," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    19. Nguyen, Thi Thu & Mia, Lokman & Winata, Lanita & Chong, Vincent K., 2017. "Effect of transformational-leadership style and management control system on managerial performance," Journal of Business Research, Elsevier, vol. 70(C), pages 202-213.
    20. Wang, Liwen & Zhao, Jane Zheng & Zhou, Kevin Zheng, 2018. "How do incentives motivate absorptive capacity development? The mediating role of employee learning and relational contingencies," Journal of Business Research, Elsevier, vol. 85(C), pages 226-237.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:12:y:2023:i:3:p:138-149. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.