Entrepreneurial Leadership and SMEs’ Performance: The Antecedent Role of Digital Transformation Readiness

Kepimpinan Keusahawanan dan Prestasi PKS: Peranan Anteseden Kesediaan Transformasi Digital


  • Raghad Aldaas Universiti Putra Malaysia
  • Rosmah Mohamed School of Business and Economics, Universiti Putra Malaysia
  • Mass Hareeza School of Business and Economics, Universiti Putra Malaysia
  • Norazlin Ismail School of Business and Economics, Universiti Putra Malaysia


Digital Transformation Readiness, Performance, Entrepreneurial Leadership, SMEs, TOE Model


The primary goal of this paper is to investigate whether digital transformation readiness (technological, organizational, and environmental model) influences entrepreneurial leadership and, if so, to what extent this entrepreneurial leadership affects SMEs' performance. To achieve the study's objective, 337 responses were collected from SMEs' employees (at all administrative levels) in Oman, using the technological, organizational, and environmental (TOE) model. SmartPLS 3 software was used to test hypotheses using structural equation modelling. The findings show that entrepreneurial leadership is positively and significantly influenced by technological and organizational factors. While environmental factors do not have such a significant effect. Furthermore, entrepreneurial leadership positively influenced SMEs performance. Technological and organizational factors can enhance entrepreneurial leadership among SMEs employees in developing economies, which reflected positively on their SMEs’ performance. Therefore, decision-makers in SMEs consider those factors while preparing the strategic planning and consider digital transformation as a vital antecedent for enhancing the whole performance of their enterprises. Despite the priority that should be given to technological and organizational factors, environmental factors should be more considered.

Matlamat utama kertas ini adalah untuk menyiasat sama ada kesediaan transformasi digital (model teknologi, organisasi dan alam sekitar) mempengaruhi kepimpinan keusahawanan dan, jika ya, sejauh mana kepimpinan keusahawanan ini mempengaruhi prestasi PKS. Untuk mencapai objektif kajian, 337 maklum balas telah dikumpulkan daripada pekerja PKS (di semua peringkat pentadbiran) di Oman, menggunakan model teknologi, organisasi dan alam sekitar (TOE). Perisian SmartPLS 3 digunakan untuk menguji hipotesis menggunakan pemodelan persamaan struktur. Dapatan kajian menunjukkan kepimpinan keusahawanan dipengaruhi secara positif dan signifikan oleh faktor teknologi dan organisasi. Sedangkan faktor persekitaran tidak memberikan kesan yang begitu ketara. Tambahan pula, kepimpinan keusahawanan mempengaruhi prestasi PKS secara positif. Faktor teknologi dan organisasi boleh meningkatkan kepimpinan keusahawanan dalam kalangan pekerja PKS dalam membangun ekonomi, yang mencerminkan prestasi PKS mereka secara positif. Oleh itu, pembuat keputusan dalam PKS mempertimbangkan faktor tersebut semasa menyediakan perancangan strategik dan mempertimbangkan transformasi digital sebagai pendahulu yang penting untuk meningkatkan keseluruhan prestasi perusahaan mereka. Walaupun keutamaan yang harus diberikan kepada faktor teknologi dan organisasi, faktor persekitaran harus lebih dipertimbangkan.


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How to Cite

Aldaas, R., Mohamed , R. ., Hareeza, M. ., & Ismail, N. . (2022). Entrepreneurial Leadership and SMEs’ Performance: The Antecedent Role of Digital Transformation Readiness: Kepimpinan Keusahawanan dan Prestasi PKS: Peranan Anteseden Kesediaan Transformasi Digital. Journal of Management and Muamalah , 12(2), 102 - 125. Retrieved from https://jmm.kuis.edu.my/index.php/jurnal/article/view/114