THE INFLUENCE OF ENTREPRENEURIAL LEADERSHIP ON CHINESE START-UP ENTERPRISE PERFORMANCE: THE MEDIATING EFFECT OF INTERNAL SOCIAL CAPITAL
DOI:
https://doi.org/10.14456/aamr.2025.11Keywords:
Leadership Style, Social Capital Theory, Start-Up Performance, Upper Echelons TheoryAbstract
This paper explores the influence of entrepreneurial leadership styles on network relationships, collective efficacy, and the performance of start-ups in light of the significant changes in the modern era and the unique environment of start-ups. Leveraging Leadership, Upper Echelons, and Social Capital Theory, the study investigates the mechanisms that underpin these interactions. Data was collected through questionnaires using purposive sampling, yielding valid responses from 403 CEOs and leaders of start-ups in Beijing, China. Employing the Bootstrap method as proposed by Hayes, the study tests its hypotheses and reports several key findings: first, entrepreneurial transformational leadership positively affects start-up performance; second, the entrepreneurial transactional leadership style demonstrates an inverted U-shaped relationship with start-up performance; third, network relationships mediate the relationship between leadership style and performance; and finally, collective efficacy also serves as a mediator in this context. This research contributes significantly to the literature by expanding the understanding of Leadership Theory as it pertains to new ventures, enhancing insights into Upper Echelons and Social Capital Theory through the roles of network relationships and collective efficacy. The theoretical model also provides practical guidance for established firm leaders in nurturing an entrepreneurial spirit among their employees.
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