Influence of Entrepreneur Leadership on Small and Medium Enterprise (SMEs) Innovation with the Mediating Role of Artificial Intelligence and Employee Ambidexterity

Abstract

Current research on entrepreneurial leadership in small and medium enterprises focuses on innovation with the mediating role of artificial intelligence and employee ambidexterity. This study aim to explore the impact of artificial intelligence and employees' ambidexterity on innovation in small and medium enterprises within the manufacturing sector. The data for this research was collected from small and medium enterprises using convenience sampling. The target organization conducted a survey with managerial-level employees and utilized SEM for data analysis and path analysis. The development of entrepreneurial leadership and small and medium enterprises has greatly contributed to economic development in many countries around the world.  This economic development is mainly reliant on innovation in small and medium enterprises. However, despite their significant economic contributions, Pakistan's small and medium enterprises have not received adequate attention in this regard. With the growth of technological advancements and globalization, small and medium enterprises are now striving to enhance their competencies by adopting new know-how to penetrate global markets. This study focuses on innovation by developing a model that investigates the relationship between entrepreneurial leadership and innovation in Pakistan's manufacturing sector, with the aim of promoting the country's economic strength. Public sector entities like SMEs may also be tasked by the government to conduct such training for incumbents, especially in the less educated segment, which forms part of our SMEs.