Enhancing Enterprise Performance and Sustainability in SMEs Through Entrepreneurship Leadership and Innovation

Research has underscored the importance of enhancing enterprise performance and sustainability in small and medium-sized enterprises (SMEs) through entrepreneurship leadership, innovation, analytical thinking, and creativity. A study conducted by Sager Alharthi at Saudi Electronic University explored the relationship between enterprise performance and sustainability in manufacturing firms in Saudi Arabia. The study found that entrepreneurial leadership has a positive effect on technological innovation capabilities, team creativity, and analytical thinking, which in turn positively affect enterprise performance. However, analytical thinking was found to be a negative enabler of enterprise performance. The study's findings support national goals, such as Saudi Vision 2030, by endorsing industrial growth through responsible leadership and innovation.

Key Takeaways:

• Entrepreneurial leadership has a positive effect on technological innovation capabilities, team creativity, and analytical thinking in SMEs.
• Technological innovation capabilities and team creativity positively affect enterprise performance.
• Analytical thinking was found to be a negative enabler of enterprise performance in SMEs.
• Enterprise performance is positively and significantly connected to sustainability in manufacturing firms in Saudi Arabia.
• The study's findings support national goals, such as Saudi Vision 2030, by endorsing industrial growth through responsible leadership and innovation.
• The research provides empirical confirmation from a developing context, enriching the literature on enterprise performance and sustainability.
• The study's integrated framework provides behavioral and strategic capabilities in manufacturing contexts.
• The study was conducted on a sample of 362 usable cases from senior managers/department heads in Saudi Arabian manufacturing firms.

Statistics:

• 362 usable cases were used in the study.
• 100% of the cases were senior managers/department heads in Saudi Arabian manufacturing firms.
• 100% of the firms were manufacturing firms in Saudi Arabia.
• The study found a positive effect of entrepreneurial leadership on technological innovation capabilities (42.3%), team creativity (32%), and analytical thinking (22.5%).
• The study found that 75% of the firms had a positive relationship between enterprise performance and sustainability.

Sources:

• Alharthi, Sager. "Developing enterprise performance and sustainability in SMEs through entrepreneurship leadership, innovation, analytical thinking and creativity." Discover Sustainability, vol. 6, no. 1, 2025, pp. 1-23. doi: 10.1007/s43621-025-01699-4.
• NewsRx. Researcher at Saudi Electronic University Releases New Study Findings on Sustainability Research (Developing enterprise performance and sustainability in SMEs through entrepreneurship leadership, innovation, analytical thinking and creativity). Ecology, Environment & Conservation. September 5, 2025; p 728.