Entrepreneurial leadership and workforce efficiency among micro-enterprises (MES) in Southwest, Nigeria
DOI:
https://doi.org/10.26661/2522-1566/2025-3/33-14Keywords:
entrepreneurial leadership, workforce efficiency, micro-enterprises (MEs)Abstract
In the manufacturing sector, entrepreneurial leadership particularly in micro-enterprises is believed to have a major impact on workers’ efficiency, boosting output and performance. However, the majority of Nigerian micro-businesses seem to have inefficient employees, which has an impact on the business's overall success. Micro-businesses in southwest Nigeria need a way to boost employees’ productivity and boost overall performance, and this can be achieved through entrepreneurial leadership. This study's primary goal is to investigate how workforce efficiency in micro-enterprises in Southwest Nigeria is affected by entrepreneurial leadership. The study employed a cross-sectional survey research approach. 398 respondents were chosen for the study using convenient and purposeful sampling approaches. A closed-ended questionnaire was used to collect the data, and PLS-SEM was used for analysis. A t-value of 7.40 and a p-value of 0.000 indicate that the results demonstrated that entrepreneurial leadership significantly affects the workforce efficiency among micro-enterprise owner-managers in Southwest Nigeria's manufacturing sector. According to the study's findings, micro-business owners and managers who value and embrace entrepreneurial leadership will be able to stay ahead of the curve in terms of consumer trends and shifts, carve out distinctive niches in crowded markets, and maintain workforce efficiency; all of which are critical components of a firm's competitiveness. The study suggests that in order to face dynamic global business issues and maintain market competitiveness, companies should support entrepreneurial leadership as a contemporary and millennium idea that would enhance workers’ performance effectively and efficiently.
JEL Classification: L26, J24, M12, O15
References
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Ajen-Alamonia, I., Edwinah, A., & Otuonye O. (2022). Training and employee efficiency of universities in Rivers State. International Journal of Management and Marketing Systems, 14(1), 53 – 61. DOI: 27261456671415
Al Mamun, A.I, Ibrahim, M.D., Mohd -Nor, Y & Ali -Fazal, S. (2018). Entrepreneurial leadership, performance, and sustainability Hakimin Bin of Micro-Enterprises in Malaysia. Sustainability, 10, 1591; doi:10.3390/su10051591
Ali, A., K. A. M., & Alenezi, A. A. (2021). Entrepreneurial leadership and organisational performance of SMEs in Kuwait: The intermediate mechanisms of innovation management and learning orientation. Interdisciplinary Journal of Information, Knowledge, and Management, 16, 459-489. https://doi.org/10.28945/4887
Alshawabkeh, R. O. K., Al-Abbadi, L. H., Eldahamsheh, M. M., Al-Quran, A. Z., Almomani, H. M., Bani-Khaled, A. K., & Al-Hawary, S. I. S. (2024). The impact of entrepreneurial leadership on organisational performance: does innovation management matter? International Journal of Services and Operations Management, 47(2), 236-255. DOI:10.1504/IJSOM.2021.10043997
Aly Ziko, A., & Asfour, A. (2023). Effect of digital marketing on consumer buying behaviour in the modern trade sector in Egypt. Journal of Business and Management Sciences, 11(1), 46-62. doi: 10.12691/jbms-11-1-4.
Anning-Dorson, T. (2021). Organizational culture and leadership as antecedents to organizational flexibility: implications for SME competitiveness. Journal of Entrepreneurship in Emerging Economies, 13(5), 1309-1325. DOI:10.1108/JEEE-08-2020-0288
Anwar, M., Khan, S. Z., & Shah, S. Z. A. (2022). Entrepreneurial leadership and micro-enterprise performance: Examining the roles of innovation, risk-taking, and proactiveness. Journal of Small Business and Enterprise Development, 29(3), 389-406. https://doi.org/10.1108/JSBED-12-2021-0491
Barlette, Y., & Baillette, P. (2022). Big data analytics in turbulent contexts: towards organizational change for enhanced agility. Production Planning & Control, 33(2-3), 105-122. DOI:10.1080/09537287.2020.1810755
Bilal M., Chaudhry SA., Sharif I., Shafique O., & Shahzad, K. (2022). Entrepreneurial leadership and employee well-being during COVID-19 crisis: A Dual Mechanism Perspective. Frontier Psychology, 13:800584. doi: 10.3389/fpsyg.2022.800584
Boukamcha, F. (2019). The effect of transformational leadership on corporate entrepreneurship in Tunisian SMEs. Leadership and Organization Development Journal, 40(3), 286-304. DOI:10.1108/LODJ-07-2018-0262
Campos, J. (2021). Analysis of entrepreneurial leadership skills and sustainable employee productivity of MSMEs. Journal of Social Entrepreneurship Theory and Practice (JSETP), 1(1), 12-27. DOI: https://doi.org/10.31098/jsetp.v1i1.645
Choi, N., & Jung, K. (2017). Measuring efficiency and effectiveness of highway management in sustainability. Sustainability, 9(8), 13-47. https://doi.org/10.3390/su9081347
Claudio, T.B., Santos, M. D., Cabral, C.A. & Pessoa, N. M. (2017). Fostering and limiting factors of innovation in micro and small enterprises. Innovative and Management Review,14(2), 130-139. DOI:10.1016/j.rai.2017.03.007
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Danladi, A., & Abdul Sabur, H. (2024). Effect of entrepreneurial leadership on MSME’s growth in Zamfara state. International Journal of Advances in Engineering and Management (IJAEM), 6(07), 839-853. DOI: 10.35629/5252-0607839853
De Winnaar, K. & Scholtz, F. (2019). Entrepreneurial decision-making: New conceptual perspectives. Management Decision, 58 (7), 1283-1300. DOI:10.1108/MD-11-2017-1152
Delgado-García, J. B., De Saa-Pérez, P., & Escobar-Pérez, B. (2021). Leadership practices and workforce efficiency in micro-enterprises: The role of strategic vision and adaptability. Journal of Business Research, 134, 120-134.https://doi.org/10.1016/j.jbusres.2021.01.058
El Nemar, S., El-Chaarani, H., Dandachi, I., & Castellano, S. (2022). Resource-based view and sustainable advantage: a framework for SMEs. Journal of Strategic Marketing, 1-24. DOI:10.1080/0965254X.2022.2160486
Felix, C., Aparicio, S. & Urbano, D. (2019). Leadership as a driver of entrepreneurship: an international exploratory study. Journal of Small Business and Enterprise Development, 26 (3), 397-420. https://doi.org/10.1108/JSBED-03-2018-0106
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312
Gholami, R., Sulaiman,-Ramayah, T., & Molla, A.(2013). Senior managers’ perception on green information systems (IS) adoption and environmental performance: Results from a field survey. Information & Management, 50(7): 431- 438.Available at: https://doi.org/10.1016/j.im.2013.01.004.
Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, Spring, 114-135. DOI:10.1016/B978-0-7506-7088-3.50004-8
Gupta, D. (2023). Employees’ efficiency and performance in organization. IJCRT, 11(8) 585-590. DOI:10.55573/IJAFB.085006
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning. ISBN-10: 9353501350.
Hair, J. F., Sarstedt, M., Ringle, C. M., Gudergan, S. P. (2018). Advanced Issues in Partial Least Squares Structural Equation Modeling. Thousand Oaks, CA: Sage. ISBN: 978148337739
Hansen, G. S. & Wernerfelt, B. (1989). Determinants of firm performance: The relative importance of economic and organizational factors. Strategic Management Journal, 10, 399-411. https://doi.org/10.1002/smj.4250100502
Harrison, C., Burnard., K., & Paul, S. (2018). Entrepreneurial leadership in a developing economy: a skill-based analysis. Journal of Small Business and Enterprise Development, 25 (3), 521-548. DOI:10.1108/JSBED-05-2017-0160
Hogan, C., Kinsella, J., O'brien, B., Markey, A., & Beecher, M. (2022). Estimating the effect of different work practices and technologies on labor efficiency within pasture-based dairy systems. Journal of Dairy Science, 105(6), 5109-5123. DOI: 10.3168/jds.2021-21216
Hussain, N., & Li, B. (2022) Entrepreneurial leadership and entrepreneurial success: The role of knowledge management processes and knowledge entrepreneurship. Front. Psychol. 13:829959. doi: 10.3389/fpsyg.2022.829959
Ishak, S., Omar, A. R. C., & Manaf, A. A. (2021). Entrepreneurial leadership in the micro and small enterprises (MSEs) research context: A Literature Review. International Journal of Academic Research in Business and Social Sciences, 11(5), 397–403.DOI:10.6007/IJARBSS/v11-i5/9815
Jibir, A., Abdu, M., & Buba, A. (2023). Does human capital influence labor productivity? Evidence from Nigerian manufacturing and service firms. Journal of the Knowledge Economy, 14(2), 805-830. DOI: 10.1007/s13132-021-00878-8
Karnsomdee, P., & Piyamas, P. (2023). the influence of entrepreneurial leadership and public entrepreneurship on organizational performance of local administrative organizations in the northeastern region of thailand. Russian Law Journal. XI(6s). DOI:10.52783/rlj.v11i6s.925
Kianto, A., Sáenz, J., Aramburu, N., & Inkinen, H. (2023). The challenge of developing high-performing teams in micro-enterprises: The need for comprehensive leadership frameworks. Journal of Knowledge Management, 27(2), 345-361. https://doi.org/10.1108/JKM-04-2022-0245
Kumar, S., & Gulati, R. (2010). Measuring efficiency, effectiveness and performance of Indianpublic sector banks. International Journal of Productivity and Performance Management, 59(1), 51 – 74. http://dx.doi.org/10.1108/17410401011006112
Kuratko, D. F., 2017 & Audretsch, D. B. (2009). Strategic entrepreneurship: exploring different perspectives of an emerging concept. Entrepreneurship theory and practice, 33(1), 1-17. DOI:10.1111/j.1540-6520.2008.00278.x
Lin, Q., &Yi, L. (2021). The multilevel effectiveness of entrepreneurial leadership: A meta-analysis. Journal of Management & Organization. 1(19). doi:10.1017/jmo.2020.45
Muhammed, U. B., Baba, I. M., Mika’el, A. D., & Muhammad, L. L. (2024). Financing constraints of micro-enterprises (MES) in North-Eastern Nigeria: The prospect of Islamic micro-finance. Management Journal for Advanced Research, 4(2), 106-115. https://doi.org/10.5281/zenodo.10986400
Naushad, M. (2021). Investigating determinants of entrepreneurial leadership among SMEs and their role in sustainable economic development of Saudi Arabia. The Journal of Asian Finance, Economics and Business, 8(4), 225-237. DOI:10.13106/jafeb.2021.vol8.no4.0225
Nguyen, P. V., Huynh, H. T. N., Lam, L. N. H., Le, T. B., & Nguyen, N. H. X. (2021). The impact of entrepreneurial leadership on SMEs’ performance: The mediating effects of organizational factors. Heliyon 7: e07326. doi: 10.1016/j. heliyon.2021.e07326
Ohimor, J. (2022). Owner-Manager’s Competences as Determinants of Innovativeness of SMEs in Podkarpacie Province. Uniwersytet Rzeszowski.
https://doi.org/10.15584/PIR.2017.9.16
Okoronkwo, I. (2021). Entrepreneurial leadership and employee innovative behaviour in selected manufacturing SMEs in Lagos State, Nigeria. The Strategic Journal of Business & Change Management, 8 (4), 1003 – 1014. DOI:10.61426/sjbcm.v8i4.2156
Pauceanu, A. M., Rabie, N., Moustafa, A., & Jiroveanu, D. C. (2021). Entrepreneurial leadership and sustainable development–a systematic literature review. Sustainability, 13(21), 11695. https://doi.org/10.3390/su132111695
Paudel, S. (2019). Entrepreneurial leadership and business performance. South Asian Journal of Business Studies, 8(3), 348-369. https://doi.org/10.1108/SAJBS-11-2018-0136
Penrose, E. T. (1959). The theory of the growth of the firm. Oxford: Basil blackell Ltd. https://doi.org/10.1016/S0024-6301(98)00009-0
Rahman, S., & Rivai, H. A. (2015) The Effect of Training Satisfaction, Pay Satisfaction on Turnover Intention through Organizational Commitment as a Mediator Variable Study of The Three‐Stars Hotels Employees in Padang City. DOI:10.18374/JIMS-15-2.7
Ravet-Brown, T. É., Furtner, M., & Kallmuenzer, A. (2024). Transformational and entrepreneurial leadership: A review of distinction and overlap. Review of Managerial Science, 18(2), 493-538. DOI:10.1007/s11846-023-00649-6
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Published
2025-10-20
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Section
Entrepreneurship, Trade and Exchange Activities
How to Cite
Ismaila, Y., Rahman, M. and Muritala, O.A. (2025) “Entrepreneurial leadership and workforce efficiency among micro-enterprises (MES) in Southwest, Nigeria”, Management and Entrepreneurship: Trends of Development, 3(33), pp. 178–193. doi:10.26661/2522-1566/2025-3/33-14.
