Entrepreneurial leadership and sustainable performance of manufacturing SMEs in Malaysia: The contingent role of entrepreneurial bricolage

Abstract

The purpose of this research is to delve into the effect of entrepreneurial leadership (EL) on the economic, environmental, and social aspects of sustainable performance; the research also focuses on the contingency role of entrepreneurial bricolage (EB). The increasing concern focused on the triple bottom line (TBL) issues has triggered enthusiasm and inspiration in the field of sustainable entrepreneurship, especially amongst the small medium enterprise (SME) owners or leaders who are directly responsible for organizational sustainable performance. This research examines the relationships between EL and economically sustainable performance (ECSPF), environmentally sustainable performance (ENSPF), and social sustainable performance (SOSPF); these relationships are contingent upon EB through the lens of Upper Echelons Theory (UET) and Effectuation Theory (ET). A total of 146 responses from a cross-sectional survey from Malaysian manufacturing SMEs were investigated using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings reveal that EL has significant effects on ENSPF and SOSPF, but has an insignificant effect on ECSPF. Meanwhile, EB does not play the contingent role in strengthening the relationships between EL and ECSPF, EL and ENSPF, and EL and SOSPF. This research highlights the importance of EL and shows that SME owners or leaders should embrace and develop their skills as a crucial step towards achieving sustainable performance for their companies. The implications and limitations of the research are discussed and recommendations for future research are also presented.