How Does Servant Leadership Increase The Competitiveness Of Startup Teams? The Mediating Role Of Employees’ Self-Efficacy

Purpose—The purpose of this study is to examine the effect of servant leadership on competitiveness of startups. Also, the role of self-efficacy as a mediator between servant leadership and competitiveness has been explored.Design/methodology/approach—Servant leadership, competitiveness and self-efficacy were evaluated in an empirical study based on a sample of 220 employees of Iranian start-up companies.The data analysis was performed through a two-stage partial least squares structural equation modeling technique. In the first stage, the measurement models were examined in terms of construct validity and reliability, while in the second stage, the structural model and research hypotheses were tested.Findings—The results demonstrated that servant leadership positively affects competitiveness. Also, as expected, self-efficacy act as a mediating variable between servant leadership and competitiveness.Practical implications—Start-ups nowadays constitute a large portion of countries’ financial turnover and economy. Considering the sharp increase in competitiveness and instability in the market, start-ups with transformational leadership are more likely to succeed. However, other styles, such as servant leadership, could play an essential role in guiding these startup companies on the way of competitiveness by strengthening employees’ empowerment and self-efficacy.Originality/value—It is believed that the important contribution of this study is demonstrating the effects of servant leadership on competitiveness of startups. Also, the mediating role of self-efficacy in this relationship has been strongly confirmed.