Mediating Role of Social Capital in Effect of Moral Leadership on Entrepreneurial Orientation of Organizations

Abstract

Background and Objective: In today’s competitive and dynamic world, organizational readiness to take entrepreneurial actions has become an important prerequisite for organizational effectiveness and survival. This study aimed to analyze the mediating role of social capital in the effect of moral leadership on the entrepreneurial orientation of organizations. Methodology: This is an applied-descriptive survey, in which the statistical population included the knowledge-based companies located in Sheikh Bahaei Science and Technology Park of Isfahan. The stratified sampling method was employed to survey 174 managers and employees. The structural equation modeling (SEM) was then used for hypothesis testing in SmartPLS. Findings: Moral leadership had positive, direct effect on the entrepreneurial orientation. It was confirmed that social capital had a mediating role in this relationship. Conclusion: Relying on moral leadership and showing normative behavior, managers can increase social capital of their organizations and the entrepreneurial orientation by developing interpersonal interactions and promoting normative behavior among followers.

Keywords

• social capital
• moral leadership
• entrepreneurial orientation
• knowledge-based companies