The effect of servant leadership on competitiveness of startups: The mediating role of entrepreneurial orientation and self-efficacy

Startups have different conditions and characteristics than other companies, so the leader, as one of the main elements of the company, can play an important role in properly training employees and discovering new opportunities and leading the company towards competitiveness. Strengthening intangible assets and increasing entrepreneurial behaviors are essential for the success of companies. A servant leadership style that strengthens employee self-efficacy and entrepreneurial orientation can play an important role in effectively leading startups towards better competitiveness. However, empirical evidence for this relationship is scarce. The present study examines the mediating role of self-efficacy and entrepreneurial orientation in the relationship between servant leadership and competitiveness. Data were collected from a sample of 230 start-up employees. Data analysis was completed through a two-stage partial least squares structural equation modeling technique. At the first stage, the measurement model was examined for construct validity and reliability, whereas at the second stage, the structural model and by implication the research hypotheses were tested. The results show that the relationship between servant leadership and competitiveness is mediated positively and significantly through self-efficacy and entrepreneurial orientation. While the direct impact of servant leadership on competitiveness is not strongly supported.