Examining The Effect Of Innovation And Leadership On Performance Of Small And Medium Enterprises (SMEs) In Pakistan

Abstract

The purpose of this study is to look into the relationship between innovation, design leadership and organizational performance in Pakistan. The study was quantitative and  correlational research method was used to determine the relationship. The approach used in this study is explanatory and deductive. 307 employees selected as a sample of the study.Out of 307,209  responses  were  found  usable  for  analysis after data screening. Close-ended questionnaire was used to collect the data from employees working at SMEs in Karachi (Pakistan) using non-probability purposive sampling technique.Smart PLS - 4 version was used for analysis.The  suggested  research  model  is  supported by Transformational leadership theory.Different types of reliability and validity analysis were also conducted to measure the accuracy of the methods.According to the results of this study, design leadership philosophies give significantly impact on workplace innovation & organization performance.Innovation has mediating effect on Employee’s performance and Leadership.In order to increase employee performance, the current study recommends managers, business owners, and policymakers in the SMEs sectors to base their choices on design leadership philosophies that support workplace innovation & organizational performance.