The objective is to understand the influencing factors and mechanisms that leaders use to motivate employees to perform in an entrepreneurial manner.
The empirical analysis focuses on the leaders of enterprises based in Shanghai, China, who responded with 325 effective questionnaires that provided data on transformational leaderships’ effect on employee organizational commitment, creative self-efficacy, and entrepreneurial performance.
The transformational leadership style of the targeted enterprises based in Shanghai, China, has an effect on creative self-efficacy, employees’ organizational commitment, and entrepreneurial performance. Creative self-efficacy mediates between transformational leadership, and organizational commitment (whether group-focused or individual-focused) mediates between transformational leadership and entrepreneurial performance.
The paper empirically tests the roles of two variables—organizational commitment and creative self-efficacy in mediating transformational leadership and entrepreneurial performance. Although the findings offer supportive literature and clear research findings on the subject of transformational leadership, there are some deficiencies concerning the sample location, size, and scope.
This paper offers a proposal of the relevant strategies to promote the positive effects of transformational leadership on entrepreneurial performance and explains how it relates to both enterprises’ development and survival.
Based on responses from senior enterprise leaders, this research presents a new perspective on the effects and mechanisms for successfully enhancing entrepreneurial performance by employing two transformational leadership techniques in China.
Transformational leadership, entrepreneurial performance, self-efficacy, organizational commitment