Abstract:
The purpose of this paper is to explore the antecedent and consequence of
entrepreneurial orientation. The study, anchored on Resource-Based View focuses on how
transformational leadership as an antecedent influences entrepreneurial orientation, which
consequently contributes to SME performance. A cross-sectional quantitative research approach
was used to answer the study’s research question. An online survey data was collected from 158
SMEs originating from South Africa in sub-Saharan Africa. The results show that,
transformational leadership is positively associated with entrepreneurial orientation. Both
transformational leadership and entrepreneurial orientation contributed to SME performance.
Lastly, entrepreneurial orientation acting as both dependent (on the antecedent) and
independent (for the consequence), showed that it is a partial mediator between transformational
leadership and SME performance. Since transformational leadership was found to be an
important contributor to entrepreneurial orientation. Thus, entrepreneurs should use a
transformational leadership style to lead and encourage entrepreneurship within their firms.
Entrepreneurship training institutions should incorporate leadership development into their
programs.
