Leadership plays a critical role in entrepreneurial success. It is well-established that there are different styles of leadership, but entrepreneurial leadership (EL) has been identified as a critical factor in achieving entrepreneurial success (ES). EL is associated with passion for innovation, risk-taking ability, decision-making, and proactiveness. EL has a crucial role in refining organizational performance, involving proactiveness, innovativeness, and risk-taking abilities of entrepreneurs. While research has studied the relationship between EL and ES, little research has explored how knowledge management processes (KMPs) and knowledge entrepreneurship (KE) mediate this relationship.
Using a knowledge-based view theory, a recent study aimed to determine the relationship between EL and ES, mediated through KMPs, and using KE as a moderator. The study employed a quantitative survey method to collect data from 390 entrepreneurial venture (EV) owners, co-founders, and managers in tech-oriented ventures (IT and Software-based) operating in Pakistan. The findings revealed that EL style positively influences ES. KMPs fully mediate the relationship between EL and ES. Furthermore, KE as a moderator strengthens the relationships between EL and the knowledge management process.
Entrepreneurial success has been acknowledged as a vital factor by entrepreneurs. However, the phenomenon of ES is frequently understood by the realization of a successful EV, and is sometimes associated with personal success. A diverse leadership style contributes toward ES, and current theoretical and empirical studies reveal that a great variety of leadership styles influence successful business ventures and ES. According to research, leadership skill training plays an essential role in making an individual more capable, confident, and productive.
Entrepreneurs are risk-takers, innovators, and competitors in the comparative market. EL hidden strengths help them to achieve more success. However, leaders have persistent affection for knowledge management processes (KMPs) to venture execution and operations. Thus, in the context of a knowledge base view (KBV) theory, if any organization utilizes and implants the knowledge effectively and efficiently, it can lead, compete, and take leverage in the competitive market.
Takeaway
Effective leadership is crucial for the success and long-term sustainability of any business venture. In today’s rapidly changing and competitive market, leaders, managers, and founders need to adopt a knowledge management approach to promote knowledge sharing among team members. This can be achieved through effective implementation of knowledge management practices (KMPs) that facilitate the transfer of valuable insights, ideas, and expertise within the organization.
By encouraging and fostering a culture of continuous learning and collaboration, leaders can create a powerful mechanism for knowledge sharing (KS) that drives innovation and growth. Effective KS within an organization can help leaders and managers make informed and rational decisions, leading to better business outcomes.
Furthermore, the success of a business venture is closely linked with its long-term sustainability in the market. In order to achieve sustainability, entrepreneurs need to focus on several key drivers, including effective leadership, strong market positioning, operational efficiency, and strategic planning.
The study mentioned above has added valuable insights into the influence mechanism between effective leadership (EL) and long-term sustainability (ES) in business ventures. It has highlighted the critical role of knowledge management practices (KMPs) in promoting effective leadership and knowledge sharing within an organization. The findings of this study have important implications for leaders, managers, and founders who are looking to build sustainable businesses in today’s dynamic market environment.
In conclusion, effective leadership, knowledge management practices, and long-term sustainability are interdependent factors that contribute to the success of a business venture. By promoting knowledge sharing and collaboration among team members, leaders can create a powerful mechanism for innovation and growth that drives long-term success in the market.