Enhancing Corporate Entrepreneurship Through Leadership Styles: The Role of Organizational Commitment and Employee Engagement as Mediators
1Samuel Otoo, 2Joseph Yeboah Gyamfi, 3Patrick Joel Turkson
1School of Business Administration, Accra Institute of Technology University/Open University Malaysia (OUM) Accra, Ghana.
2,3Department of Marketing, Supply Chain and Procurement, Methodist University Ghana, Accra, Ghana
https://doi.org/10.47191/jefms/v8-i4-50
ABSTRACT:
In an increasingly dynamic business environment, leadership plays a pivotal role in fostering innovation and entrepreneurial initiatives within organizations. This study investigates how leadership styles influence corporate entrepreneurship within Ghana’s financial sector, focusing on the mediating roles of organizational commitment and employee engagement. The research aims to understand how transformational, transactional, and laissez-faire leadership styles contribute to entrepreneurial activities by fostering organizational commitment and employee engagement. A quantitative research approach was employed, using a mono-method survey design. Stratified sampling targeted managerial and non-managerial staff of Ghana Commercial Bank, yielding 378 valid responses. Structural Equation Modelling (SEM) was used to analyze direct and mediated relationships among leadership styles, organizational commitment, employee engagement, and corporate entrepreneurship. The findings reveal a positive relationship between leadership styles and corporate entrepreneurship. Transformational leadership showed a direct but modest effect on corporate entrepreneurship. Organizational commitment did not mediate the leadership-entrepreneurship link significantly. However, employee engagement emerged as a marginally significant mediator, underscoring its importance in fostering entrepreneurial activities. Leadership styles, particularly transformational leadership, play a critical role in driving corporate entrepreneurship. The findings emphasize the need for organizations to prioritize employee engagement strategies to enhance entrepreneurial outcomes. The study highlights the limited mediation of organizational commitment, suggesting other potential mediators for future research.
KEYWORDS:
Corporate entrepreneurship, Leadership styles, Organizational commitment, Employee engagement, Transformational leadership.
REFERENCES:
1) Adim Victor, C., & Poi, G. (2021). Dynamics of Corporate Entrepreneurial Initiatives: A Literature Review. International Journal of Entrepreneurship ISSN, 6(1), 1–13. www.ajpojournals.orgwww.ajpojournals.org
2) Adomako, S., & Nguyen, N. P. (2024). Collaborative entrepreneurship and social innovation performance: Effects of institutional support and social legitimacy. Corporate Social Responsibility and Environmental Management. https://doi.org/10.1002/CSR.2900
3) Ahmad, R., Nawaz, M. R., Ishaq, M. I., Khan, M. M., & Ashraf, H. A. (2023). Social exchange theory: Systematic review and future directions. Frontiers in Psychology, 13, 1015921. https://doi.org/10.3389/FPSYG.2022.1015921/BIBTEX
4) Akpa, V., Asikhia, O., & Adeleke, A. A. (2021). Leadership: A Review of Definitions and Theories. International Journal of Advances in Engineering and Management (IJAEM), 3, 273. https://doi.org/10.35629/5252-0301273291
5) Aljileedi, S. M., & Amoozegar, A. (2023). THE MEDIATING EFFECT OF ORGANIZATIONAL COMMITMENT BETWEEN TRANSFORMATIONAL LEADERSHIP STYLES AND EMPLOYEE PERFORMANCE IN PUBLIC BANKING SECTOR IN LIBYA. https://doi.org/10.17605/OSF.IO/3ERPJ
6) Alrowwad, A., Abualoush, S. H., & Masa’deh, R. (2020). Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance. Journal of Management Development, 39(2), 196–222. https://doi.org/10.1108/JMD-02-2019-0062/FULL/HTML
7) Alshahrani, I., Al-Jayyousi, O., Aldhmour, F., & Alderaan, T. (2024). Towards understanding the influence of innovative work behavior on healthcare organizations’ performance: the mediating role of transformational leaders. Arab Gulf Journal of Scientific Research, 42(1), 198-216.
8) Asbari, M. (2020). Is Transformational Leadership Suitable for Future Organizational Needs? INTERNATIONAL JOURNAL OF SOCIAL, POLICY AND LAW, 1(1), 51–55. https://doi.org/10.8888/IJOSPL.V1I1.17
9) Bakker, A. B., Hetland, J., Kjellevold Olsen, O., & Espevik, R. (2023a). Daily transformational leadership: A source of inspiration for follower performance? European Management Journal, 41(5), 700–708. https://doi.org/10.1016/J.EMJ.2022.04.004
10) Bakker, A. B., Hetland, J., Kjellevold Olsen, O., & Espevik, R. (2023b). Daily transformational leadership: A source of inspiration for follower performance? European Management Journal, 41(5), 700–708. https://doi.org/10.1016/J.EMJ.2022.04.004
11) Ben Arfi, W., & Hikkerova, L. (2021). Corporate entrepreneurship, product innovation, and knowledge conversion: the role of digital platforms. Small Business Economics, 56(3), 1191–1204. https://doi.org/10.1007/S11187-019-00262-6/METRICS
12) Burch-Parker, L. (2021). Organizational Culture, Organizational Commitment, and Perception of Meaningful Work Among Social Workers in the Public Sector Throughout the United States.
13) Changar, M., & Atan, T. (2021). The Role of Transformational and Transactional Leadership Approaches on Environmental and Ethical Aspects of CSR. Sustainability 2021, Vol. 13, Page 1411, 13(3), 1411. https://doi.org/10.3390/SU13031411
14) Chua, J., & Ayoko, O. B. (2021a). Employees’ self-determined motivation, transformational leadership and work engagement. Journal of Management & Organization, 27(3), 523–543. https://doi.org/10.1017/JMO.2018.74
15) Chua, J., & Ayoko, O. B. (2021b). Employees’ self-determined motivation, transformational leadership and work engagement. Journal of Management & Organization, 27(3), 523–543. https://doi.org/10.1017/JMO.2018.74
16) Donkor, F., Sekyere, I., & Oduro, F. A. (2021). Transformational and Transactional Leadership Styles and Employee Performance in Public Sector Organizations in Africa: A Comprehensive Analysis in Ghana. Https://Doi.Org/10.1080/15228916.2021.1969191. https://doi.org/10.1080/15228916.2021.1969191
17) Furuoka, F., & Idris, A. (2021). Mapping the relationship between transformational leadership, trust in leadership and employee championing behavior during organizational change. Elsevier. https://www.sciencedirect.com/science/article/pii/S1029313220300609
18) Galanti, T., Guidetti, G., & Mazzei, E. (2021a). Work from home during the COVID-19 outbreak: The impact on employees’ remote work productivity, engagement, and stress. Ncbi.Nlm.Nih.Gov. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8247534/
19) Galanti, T., Guidetti, G., & Mazzei, E. (2021b). Work from home during the COVID-19 outbreak: The impact on employees’ remote work productivity, engagement, and stress. Ncbi.Nlm.Nih.Gov. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8247534/
20) García, C. J., & Herrero, B. (2022). Corporate entrepreneurship and governance: Mergers and acquisitions in Europe. Technological Forecasting and Social Change, 182. https://doi.org/10.1016/j.techfore.2022.121845
21) Hadi, N., & Tentama, F. (2020). Affective Commitment, Continuance commitment and Normative commitment in Reflecting Organizational commitment. In American International Journal of Business Management (Vol. 3, Issue 8). www.aijbm.com
22) Hennayake, Y., & Maldeniya, P. (2021). The Impact of Transformational Leadership on Change Management. International Journal of …. https://ijebhb.com/index.php/ijebhb/article/view/71%0Ahttps://ijebhb.com/index.php/ijebhb/article/download/71/66
23) Inegbedion, D. O., & Olalekan, A. (2022). CORPORATE PHILANTHROPY AND FIRM PERFORMANCE: A MODERATING ROLE OF ENTREPRENEURSHIP & INNOVATIONS: A CASE OF DANGOTE GROUP. Search.Ebscohost.Com. https://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=15247252&AN=157204501&h=tr%2FQEkvM3lG6r8
JI2C7ZVHMXEn5IsvbVjHnn0CBouQ%2BFcPlUHLVZLv1fBqyDD0niw%2BjqyiqRtIASACoIpaBdTQ%3D%3D&crl=
c&casa_token=-ntpcuzPEeoAAAAA:S8NI1N-TJ3gSZHsD2rA3Zjo5rqiXWf8pWyOr_ZzhF_Z1Wcj9iQvUqBvBw491gsXhyJQqWcxii8dR85M
24) Islam, M. N., Furuoka, F., & Idris, A. (2020). Mapping the relationship between transformational leadership, trust in leadership and employee championing behavior during organizational change. https://doi.org/10.1016/j.apmrv.2020.09.002
25) Jaiswal, N. K., & Dhar, R. L. (2017). The influence of servant leadership, trust in leader and thriving on employee creativity. Leadership and Organization Development Journal, 38(1), 2–21. https://doi.org/10.1108/LODJ-02-2015-0017/FULL/XML
26) Kalkan, Ü, Altınay Aksal, F., Altınay Gazi, Z., Atasoy, R., & Dağlı, G. (2020). The Relationship Between School Administrators’ Leadership Styles, School Culture, and Organizational Image. SAGE Open, 10(1). https://doi.org/10.1177/2158244020902081/ASSET/IMAGES/LARGE/10.1177_2158244020902081-FIG3.JPEG
27) Karacaoğlu, E. (2021). Flusilazole Induced Cytotoxicity and Inhibition of Neuronal Growth in Differentiated SH-SY5Y Neuroblastoma Cells by All-Trans-Retinoic Acid (Atra). Turkish Journal of Pharmaceutical Sciences, 18(5), 597. https://doi.org/10.4274/TJPS.GALENOS.2021.30676
28) Kim, M., & Beehr, T. A. (2020). Empowering leadership: leading people to be present through affective organizational commitment?*. The International Journal of Human Resource Management, 31(16), 2017–2044. https://doi.org/10.1080/09585192.2018.1424017
29) Krishnan, R., Cook, K. S., Kozhikode, R. K., & Schilke, O. (2020). An Interaction Ritual Theory of Social Resource Exchange: Evidence from a Silicon Valley Accelerator. Https://Doi.Org/10.1177/0001839220970936, 66(3), 659–710. https://doi.org/10.1177/0001839220970936
30) Kulkarni, P., & Appasaba, L. V. (2022). The influence of COVID-19 on employee ergonomics and employee engagement of bankingemployees.Emerald.Com.https://www.emerald.com/insight/content/doi/10.1108/MANM-12-2021-0009/full/html
31) Mosquera, P., Soares, M. E., & Alvadia, T. (2022). Is teleworking at odds with social sustainability and organizational learning? The Learning Organization, 29(5), 527-547.
32) Mustafa, G., Mubarak, N., Khan, J., Nauman, M., & Riaz, A. (2023). Impact of Leader-Member Exchange on Innovative Work Behavior of Information Technology Project Employees; Role of Employee Engagement and Self-Efficacy. Employee Responsibilities and Rights Journal, 35(4), 581–599. https://doi.org/10.1007/S10672-022-09429-Y/METRICS
33) Mwesigwa, R., Tusiime, I., & Ssekiziyivu, B. (2020). Leadership styles, job satisfaction and organizational commitment among academic staff in public universities. Journal of Management Development, 39(2), 253–268. https://doi.org/10.1108/JMD-02-2018-0055/FULL/XML
34) Nyoman, I., & Sutaguna, T. (2022). Spiritual Leadership, Workplace Spirituality and Organizational Commitment; Individual Spirituality as Moderating Variable. https://www.researchgate.net/publication/366248549
35) Ogonegbu, E., & Kyongo, J. K. (2024). NEXUS BETWEEN TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL PERFORMANCE: SYSTEMATIC REVIEW. International Academic Journal of Human Resource and Business Administration |, 4(3), 424–435. https://iajournals.org/articles/iajhrba_v4_i3_424_435.pdf
36) Pan, Y., Verbeke, A., & Yuan, W. (2021). CEO Transformational Leadership and Corporate Entrepreneurship in China. Management and Organization Review, 17(1), 45–76. https://doi.org/10.1017/MOR.2020.59
37) Purwanto, A. (2021). The Relationship of Transformational Leadership, Organizational Justice and Organizational Commitment: a Mediation Effect of Job Satisfaction. https://papers.ssrn.com/abstract=3986678
38) Purwanto, A., Purba, J. T., Bernarto, I., & Sijabat, R. (2021). Effect Of Transformational Leadership, Job Satisfaction, And Organizational Commitments On Organizational Citizenship Behavior. https://papers.ssrn.com/abstract=3987670
39) Sarwar, H., Ishaq, M. I., Amin, A., & Ahmed, R. (2020). Ethical leadership, work engagement, employees’ well-being, and performance: a cross-cultural comparison. Journal of Sustainable Tourism, 28(12), 2008–2026. https://doi.org/10.1080/09669582.2020.1788039
40) Şengüllendi, M. F., Bilgetürk, M., & Afacan Fındıklı, M. (2024). Ethical leadership and green innovation: the mediating role of green organizational culture. Journal of Environmental Planning and Management, 67(8), 1702–1723. https://doi.org/10.1080/09640568.2023.2180347
41) Shin, B. Y., & Cho, K. T. (2020). The evolutionary model of corporate entrepreneurship: A case study of samsung creative-lab. Sustainability (Switzerland), 12(21), 1–23. https://doi.org/10.3390/su12219042
42) Soomro, B. A., & Shah, N. (2022). Robustness of the transformational leadership towards corporate entrepreneurship. Journal of Public Affairs, 22(2), e2509. https://doi.org/10.1002/PA.2509
43) Sungu, L. J., Weng, Q., & Xu, X. (2019). Organizational commitment and job performance: Examining the moderating roles of occupational commitment and transformational leadership. International Journal of Selection and Assessment, 27(3), 280–290. https://doi.org/10.1111/IJSA.12256
44) Suzuki, K., & Hur, H. (2020). Bureaucratic structures and organizational commitment: findings from a comparative study of 20 European countries. Public Management Review, 22(6), 877–907. https://doi.org/10.1080/14719037.2019.1619813
45) Udin, U. (2020). Transformational Leadership and Organizational Commitment: A Review of Literature. JRO, 7(2), 2623–2626. https://doi.org/10.15520/jro.v7i2.49
46) Xie, L. (2020). The impact of servant leadership and transformational leadership on learning organization: a comparative analysis. Leadership and Organization Development Journal, 41(2), 220–236. https://doi.org/10.1108/LODJ-04-2019-0148/FULL/HTML
