Dual Mediation of Behavioral Commitment and Transformational Leadership In Enhancing SME Performance
DOI:
https://doi.org/10.47747/icbem.v3i1.3320Abstract
This study investigates how entrepreneurial orientation and network capability influence small and medium-sized enterprise (SME) performance through the dual mediating roles of behavioral commitment and transformational leadership. While prior studies have extensively examined the direct effects of strategic orientation and networking on performance, empirical evidence explaining the internal mechanisms through which these strategic resources are transformed into performance outcomes remains limited, particularly in community-based and women-led SME contexts. Drawing on strategic entrepreneurship and leadership theories, this study proposes and tests a dual mediation model using data collected from 222 SMEs operating within the Bhayangkari organizational environment in Indonesia. Data were analyzed using Structural Equation Modeling (SEM) with AMOS to assess both the measurement and structural models. The results demonstrate that entrepreneurial orientation and network capability significantly enhance behavioral commitment and transformational leadership. In turn, both mediators exert strong positive effects on SME performance, exceeding the magnitude of the direct effects of entrepreneurial orientation and network capability. Mediation analysis confirms that behavioral commitment and transformational leadership jointly function as critical transmission mechanisms linking strategic orientation and relational capability to performance outcomes. The findings contribute to the SME and entrepreneurship literature by integrating strategic orientation, behavioral commitment, and leadership perspectives into a unified explanatory framework. Practically, the study highlights the importance of leadership development and behavioral capacity-building initiatives in maximizing the performance impact of entrepreneurial strategies and networking efforts, particularly within semi-formal, community-based SME ecosystems. Overall, this research offers a nuanced understanding of how SME performance is constructed through the interaction of strategy, behavior, and leadership in emerging economy contexts.
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