The importance of entrepreneurial leadership in fostering bank performance

Abstract

PurposeThis study investigates how entrepreneurial leadership fosters market orientation, bank innovativeness and bank performance; it also investigates how market orientation contributes to brand orientation, bank innovativeness and bank performance.Design/methodology/approachIn total, 1500 questionnaires were distributed to 100 bank branches in Indonesia (500 to managers and 1000 to employees); 300 responses (20% response rate) were used for further statistical analysis.FindingsThe results confirmed the existence of relationships among entrepreneurial leadership, market orientation, bank innovativeness, brand orientation and bank performance. The role of entrepreneurial leadership in fostering market orientation, bank innovativeness, brand orientation and bank performance demonstrates that leaders can motivate employees to complete their tasks.Practical implicationsThe findings suggest that entrepreneurial leadership, new ideas and innovative products and services can foster bank performance.Originality/valueThe emerging banking industry in Indonesia has witnessed changing market conditions. Banks will benefit from being more market-driven and diverse in their customer relationships to generate value.