The effect of transformational leadership on corporate entrepreneurship in Tunisian SMEs

Abstract

Purpose The purpose of this paper is to investigate whether transformational leadership matters in promoting corporate entrepreneurship in Tunisian small and medium-sized enterprises (SMEs). It has been argued that transformational leadership is a multidimensional construct which is composed of intellectual stimulation, idealized influence, inspirational motivation and individual consideration. Corporate entrepreneurship is also a multidimensional construct composed of new business venturing, innovativeness, self-renewal and proactiveness. Hence, it has been hypothesized that transformational leadership positively and directly influences corporate entrepreneurship. Design/methodology/approach A hypothetico-deductive and quantitative approach was adopted to test the suggested research model. A 2 × 2 survey was conducted on a random sample of a set of Tunisian SMEs’ workers. Data analysis was performed using the structural equation modeling. Findings The results highlight the relatively relevance of transformational leadership’s components in triggering the corporate entrepreneurship’s patterns. Originality/value The author reports on the importance of transformational leadership in the corporate entrepreneurship development in the Tunisian business context. The paper should be of interest to readers in the areas of management and entrepreneurship. This work seems to be relevant to the extent that few works have highlighted the association between the components of both transformational leadership and corporate entrepreneurship. The findings seem interesting insofar as they show mainly the important effect of the intellectual stimulation and the inspirational motivation, triggered by transformational leaders, on workers’ innovativeness, proactiveness and new business venturing.