Is Entrepreneurial Leadership a Double-edged Sword for Adaptive Performance? The Mediation of Individual Entrepreneurial Orientation and Emotional Exhaustion

Abstract

The aim of this research is to examine the complex relationship between entrepreneurial leadership and employee adaptive performance in the hospitality sector, with a particular focus on understanding the underlying mechanisms through which this relationship operates. Drawing on social exchange theory, this study investigates the parallel mediating roles of individual entrepreneurial orientation and emotional exhaustion in the entrepreneurial leadership–adaptive performance relationship. Using a time-lagged research design with hospitality employees in Pakistan, the study reveals that entrepreneurial leadership does not directly influence adaptive performance but operates through mediating pathways. The findings demonstrate that entrepreneurial leadership significantly enhances individual entrepreneurial orientation while reducing emotional exhaustion, both of which subsequently improve adaptive performance. These results highlight the importance of understanding the indirect mechanisms through which leadership influences employee outcomes in dynamic service environments. The study contributes to entrepreneurial leadership theory by demonstrating the dual pathways through which such leadership affects performance, offering valuable insights for hospitality management practices. The findings suggest that organizations should focus on developing entrepreneurial leadership capabilities that foster employee entrepreneurial mindsets while simultaneously addressing emotional well-being to enhance adaptive performance in the hospitality industry.