Entrepreneurial leadership and organizational performance: employee creativity and behavior

PurposeThis research aims to highlight the connection of entrepreneurial leadership with improved organizational outcomes through employee-driven factors of creativity and behavior. It addresses certain existing research gaps concerning the interaction of leadership practices with organizational performance.Design/methodology/approachA quantitative cross-sectional design was employed to analyze the interaction among the study variables. Data was collected from 414 employees across various industries in Punjab, Pakistan through an adapted questionnaire which was in structured form. Smart Pls 4 and SPSS were used for analysis of the collected data.FindingsThe findings indicate positive and significant effect of entrepreneurial leadership on organizational performance, wherein employee creativity and behavior are the key mediators. The study shows that high levels of employee creativity and positive behavior are directly linked to improved performance metrics in organizations led by entrepreneurial leaders. This consequently underscores the need of creating an environment which encourages creativity and supports positive employee behaviors required for entrepreneurial leadership.Originality/valueThis research enriches the academic discourse by quantitatively confirming the mediating role of employee creativity and behavior between entrepreneurial leadership and organizational performance. Unlike previous studies which focused mainly on direct effects or less quantifiable leadership aspects, this study provides empirical evidence supporting a model where employee attributes significantly impact organizational success under entrepreneurial leadership. This insight is valuable for leaders and practitioners aiming to utilize entrepreneurial leadership in dynamic business settings.