Culturally-endorsed Leadership, Social cognition, and Entrepreneurial Orientation: An Empirical Inquiry

Abstract

Entrepreneurial orientation can not only be influenced by leadership, culture, but also through social cognition induced through Job Demands and Resources. Moreover, higher Entrepreneurial orientation could further lead to job satisfaction. These intricate relationships were never explored before. Therefore, we proposed a theoretical framework combining (Stephan & Pathak, 2016) and (Ralph Kattenbach, 2018) models, and modifying them to include the concept of Job satisfaction. Stephan & Pathak (2016) investigated the impact of Culturally-endorsed implicit Leadership Theories (CLT) on individual entrepreneurship. CLTs is a concept of culture-level build on individual-level implicit leadership theory (ILT) proposed by (Robert G. Lord, 1991). (Ralph Kattenbach, 2018) modified (Bandura, 1997) social cognitive theory (SCT) to include Entrepreneurial orientation. SCT itself was a modified version of Job Demands-Resources Model proposed by (Demerouti, 2001). Empirical validity of the proposed theory was established by means of a survey based on close ended Likert scale type questionnaire that collected data from 200 corporate sector employees based in Karachi. It was later analyzed using structured equation modeling and confirmatory factor analysis. This result showed that both cultural factors i.e. Uncertainty Avoidance and Collectivism have a significant and positive influence on both Self-Protective and Charismatic leadership. However, the effect of leadership on entrepreneurial orientation (EI) was not empirically significant. Similarly, the effect of both social cognitive factors i.e. Job Demand and Job resource on EI was positive and significant. EI and job demand had an insignificant effect on job satisfaction. However, job resource has a significant positive impact. This imply that job resource factors have a direct influence on EI as well as Job Satisfaction. But EI itself has no direct link with job satisfaction of employees. Hence, mapping and evaluating a culture of organization in consolidation with its employees’ job demand and resource factors may lead to higher job satisfaction.