An Entrepreneur and a Leader!: A Framework Conceptualizing the Influence of Leadership Style on a Firm’s Entrepreneurial Orientation—Performance Relationship

Abstract

Abstract Previous research has demonstrated a relationship between entrepreneurial orientation (EO) and organizational performance. Utilizing the resource-based theoretical paradigm, past empirical and theoretical research is synthesized towards a common conceptual framework which examines the role of charismatic leadership in the EO-Performance relationship. Incorporating previous leadership research on charisma and Machiavellianism, it is proposed that either egocentric (self-enhancing) or collective (organizational) values of the individuals working at the organization will influence the EO-Performance relationship. This paper asserts that a charismatic leader will stimulate positive employee organizational citizenship behaviour, whereas a Machiavellian leader will stimulate negative employee impression management practices. Understanding the role leadership plays in today’s environment, entrepreneurs will be better able to equip their human resource to achieve their vision of tomorrow.