THE IMPACT OF LEADERSHIP AND ENTREPRENEURSHIP ON CHINESE SME’S PERFORMANCE: ORGANIZATIONAL CULTURE AS A MEDIATING VARIABLE.

Abstract

This paper intends to investigate, using organizational culture, the impact of leadership and entrepreneurship on the growth of small and medium-sized businesses (SMEs) in China. Since SMEs are so important, China’s economic development depends on an awareness of the factors influencing their success. As is generally known, entrepreneurial attitude and good leadership greatly influence executive decisions, new product creation, and company strategy. Still, the mechanisms in which organizational culture connects these elements to performance results remain mostly unclear. This quantitative research gathers from a range of sectors a representative sample of Chinese SMEs. Examination of the ways in which proactive leadership, creativity, and risk-taking shape corporate performance and culture. Leadership and entrepreneurship shape organizational culture, which in turn influences business success by means of their impact. In an environment that supports creativity, teamwork, and flexibility, the favorable results of leadership and entrepreneurship become much more noticeable. Furthermore, studies reveal that transformational leadership is more suited than transactional leadership in promoting excellent corporate cultures. A more responsive and competitive business might also result from an entrepreneurial attitude that values creativity and risk-taking. The results provide understanding of the dynamics of leadership, entrepreneurship, corporate culture, and performance in Chinese SMEs. This research on how to optimize policies for the expansion of SMEs may provide insightful analysis to managers, legislators, and businessmen. The study emphasizes how corporate culture plays a mediator. SMEs may really benefit from an organizational culture fit for strong leadership and entrepreneurial efforts as it will enable them to live longer and perform better.