The Impact of Entrepreneurial Leadership on Innovation Speed and Quality: The Mediating Role of Strategic Flexibility

Abstract

In a highly dynamic and competitive environment, organizations must continuously and rapidly improve their innovation performance to remain competitive and sustainable in the market. Drawing on principles of the upper echelons theory and dynamic capability view of organization, this study aims to examine the mediating role of strategic flexibility in the relationship between entrepreneurial leadership and innovation speed and quality. Questionnaire was designed to data collection from a quota sample of (283) leaders and managers at branches of the most two huge Egyptian banks represent public and private sectors (NBE and CIB). Data analysis was conducted through a two-stage structural equation modeling technique by AMOS. At the first stage, the measurement model was examined for construct validity and reliability, whereas at the second stage, the structural model was run for testing the research hypotheses. The empirical results show that entrepreneurial leadership and strategic flexibility positively and significantly affect both innovation speed and quality. Furthermore, strategic flexibility partially mediates positively the relationships between entrepreneurial leadership and innovation speed and quality. This research proposes guidelines for managers to help enhance organizational innovation through dynamic and strategic flexibility in emerging economies such as Egypt.