LEADERSHIP STYLES AND SUSTAINABLE COMPETITIVE PERFORMANCE IN PAKISTANI SMES: AN INDUSTRY 4.0 PERSPECTIVE

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.