Connecting the Dots: Linking Entrepreneurial Leadership and Strategic Agility towards SME Competitiveness

Abstract

This study attempted to investigate the competitiveness of small and medium enterprises (SMEs) through strategic agility in the context of a developing nation. As SMEs are currently operating in a volatile, uncertain, complex and ambiguous business landscape, enhancing strategic agility and the competitiveness of SMEs are highly pivotal. The study examined the integrative relationships between the individual, the firm and institutional factors in explaining SMEs competitiveness. This study specifically conjectured that entrepreneurial leadership and government support could influence SMEs’ strategic agility and competitiveness. Data collected from 190 SMEs in Indonesia were subjected to partial least square (PLS) analysis using Smart-PLS version 3.0. The findings showed that entrepreneurial leadership and government support significantly influenced the strategic agility of SMEs that subsequently enhanced their competitiveness. Thus, this study will be beneficial to policymakers, managers and owner of SMEs to focus on empowering SME leaders who have entrepreneurial traits and behaviours that can explicitly address the values of government support that are most needed for SMEs as well as transform challenge into business opportunity to win competition.