LEADERSHIP AND ENTREPRENEURSHIP IN CHINA: THE ROLE OF ORGANISATIONAL CULTURE AS A MODERATOR IN THE PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES.

Abstract

This paper's overarching goal is to use organisational culture as a lens through which to examine how leadership and entrepreneurship have contributed to the expansion of China's SMEs. Recognising the elements that affect the performance of SMEs is crucial to China's economic growth because of the importance of SMEs. Good leadership and an entrepreneurial spirit are well-known to have a significant impact on executive decision-making, product development, and overall business strategy. We still don't fully understand how organisational culture links these factors to performance outcomes. The sample of Chinese SMEs included in this quantitative study comes from a variety of industries. Analysing how leadership that takes the initiative, encourages innovation, and is willing to take risks affects company culture and performance. Leadership and entrepreneurship have a multiplicative effect on company performance because they mould company culture. When leadership and entrepreneurship thrive in a setting that values innovation, collaboration, and adaptability, their positive effects are easier to see. In addition, research shows that when it comes to fostering great company cultures, transformational leadership works better than transactional leadership. By prioritising innovation and calculated risks, an entrepreneurial mind-set may help businesses become more agile and competitive. Management, lawmakers, and businesspeople may benefit from this study's consideration of how to maximise policies that support the growth of SMEs. The mediating role of company culture is highlighted in the research. Small and medium-sized enterprises may survive longer and perform better if their organisational culture is conducive to strong leadership and entrepreneurial activities.