Quantitative analysis finds entrepreneurial leadership and organizational culture boost innovative work behavior in SMEs, suggesting the role of employee engagement is significant.
This study aims to analyze the influence of entrepreneurial leadership and organizational culture on innovative work behavior, with employee engagement as a mediating variable in Small and Medium Enterprises (SMEs) in Malang City. A quantitative approach was employed in this research using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) method. The research sample consisted of 137 respondents who are employees of SMEs in Malang City.The findings indicate that entrepreneurial leadership and organizational culture have a positive and significant impact on employees' innovative work behavior. Additionally, these two variables also contribute to enhancing employee engagement. Another important finding reveals that employee engagement partially mediates the relationship between entrepreneurial leadership and organizational culture on innovative work behavior. This suggests that the higher the employee engagement, the stronger the influence of entrepreneurial leadership and organizational culture in fostering work innovation. This study contributes to strengthening the theory of employee engagement as a crucial factor in enhancing work innovation. Practically, the findings provide recommendations for SME practitioners in Malang City to reinforce entrepreneurial leadership and cultivate an organizational culture that encourages employee involvement to boost innovation in the workplace
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Makhmut et al. (2025) studied this question.
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