Human Capital and SME Performance: Mediating Effect of Entrepreneurial Leadership

Marijana Simić; Marko Slavković; Vesna Stojanović Aleksić

doi:10.7595/management.fon.2020.0009

Marijana Simić University of Kragujevac, Faculty of Economics, Serbia
Marko Slavković University of Kragujevac, Faculty of Economics, Serbia
Vesna Stojanović Aleksić University of Kragujevac, Faculty of Economics, Serbia

DOI: https://doi.org/10.7595/management.fon.2020.0009

Abstract

Research Question: The paper investigates the relationships between human capital and SME performance, introducing into the analysis the mediating effect of entrepreneurial leadership in the specific context of a transitional economy. Motivation: The research of the mediating effect of entrepreneurial leadership contributes to a better understanding of the relationships between human capital and SME performance. As there is a small number of studies that have examined the role of entrepreneurial leadership in SMEs, the need for investigation is obvious. In addition, empirical evidence of the impact of human capital on SME performance is limited. Idea: Since leadership is considered to be a key determent of organisation growth, it is relevant to identify the relevance of entrepreneur’s leadership style and characteristics, as well as its role in the relationship between human capital components and success of SMEs in Serbia. Data: The study included 110 employees in Serbian small and medium-sized enterprises with up to 50 employees. A questionnaire was used to measure the employees’ attitude towards human capital, entrepreneurial leadership, and organizational performance, as well as socio-demographic variables. Tools: The data were prepared and analysed using statistical software IBM SPSS 24.0. Statistical data processing methods used in this paper are descriptive statistics, reliability analysis and regression analysis. Findings: The results of the analysis indicate that human capital has an indirect impact on organisational performance through the mediating effect of entrepreneurial leadership. Contribution: The results can be used in making future decisions, measures and standards related to human resource management in the context of transitional economies, as well as to help entrepreneurs to lead their employees effectively and ‚‚‚‚survive in today’s turbulent business environment.

Author Biographies

Marijana Simić, University of Kragujevac, Faculty of Economics, Serbia

Marijana Simic is a Ph.D student at the Department for Management and Business Administration, Faculty of Economics, University of Kragujevac. In September 2016 she received her bachelor's degree. She defended her bachelor thesis entitled: “Employee Motivation with the Purpose of Improving Organizational Performance”, at the Faculty of Economics, University of Kragujevac. The topic of her Master’s thesis was related to human capital and entrepreneurship, and in October 2017 she received her master's degree. Main fields of her research interest are human resources, entrepreneurship and organizational behavior. She was awarded a scholarship: Dositej’s fund for Young Talents by the Ministry for Youth and Sports. She is engaged as a young researcher at the project of Ministry of Education, Science and Technological Development of the Republic of Serbia. Also, as a young researcher she has participated in several international scientific conferences.

Marko Slavković, University of Kragujevac, Faculty of Economics, Serbia

Marko Slavkovic is an assistant professor at the Faculty of Economics University of Kragujevac. He received his Ph.D. at the Faculty of Economics in Kragujevac in the field of Strategic Human Resource Management. He holds the following subjects at graduate, master and doctoral academic studies: Human Resource Management, International Human Resource Management and Strategic Management in Tourism. He participated in the preparation of a number of analyses, studies and projects for the needs of the subject of economy. As a consultant, he has been engaged permanently or occasionally by domestic and foreign companies. He is currently serving as Vice Dean for Science at the Faculty of Economics in Kragujevac. He is a member of the Executive Committee of the Economist Society of Kragujevac.

Vesna Stojanović Aleksić, University of Kragujevac, Faculty of Economics, Serbia

Vesna Stojanović-Aleksić, PhD, is a Full Professor at the Department for Management and Business Economics. She holds PhD degree from the Faculty of Economics, University of Kragujevac and teaches the following subjects at the same university: Organization of Enterprise, Organizational Behavior and Leadership and Organizational Changes. Her research areas are: leadership, organizational culture, organizational change, organizational behaviour and corporate social responsibility.