Entrepreneurial Leadership and Its Effect on Organizational Culture

Abstract

This study investigates the relationship between entrepreneurial leadership (EL) and organizational culture (OC), examining both their direct linkages and the mediating role of culture in firm performance. Drawing on a mixed-method design, quantitative data were collected through surveys of 650 employees across multiple industries and analyzed using structural equation modeling, while qualitative insights were obtained from 55 interviews with managers and employees. The results demonstrate that EL significantly predicts OC, with organizational culture partially mediating the relationship between leadership and performance outcomes. Sectoral differences emerged, with technology-intensive firms exhibiting stronger EL–OC alignment compared to more stable industries. Qualitative analysis revealed that entrepreneurial leaders foster psychological safety, empowerment, and knowledge sharing, thereby embedding entrepreneurial values into everyday practices. The study also highlights how EL shapes subcultures within organizations, creating incubators for innovation and intrapreneurship. These findings provide both theoretical contributions, by extending leadership and culture research, and practical implications, by underscoring the importance of leadership development programs that emphasize entrepreneurial competencies. Overall, the research concludes that entrepreneurial leadership serves as a cultural catalyst, creating adaptive, innovative, and performance-enhancing organizational environments.