Transformational entrepreneurship and employee readiness to change in Indian MSEs: a mediating role of employees innovative behaviour
by Kartikeya Raina; Navneet Rawat
International Journal of Business Innovation and Research (IJBIR), Vol. 36, No. 3, 2025

Abstract: Medium and small enterprises (MSEs) are critical for economic development. The advantages to society and the economy are enormous, as it fosters innovation, creates new job possibilities, boosts competitiveness, boosts organisational productivity, and contributes to global economic growth. A business's success or failure is highly dependent on its capacity to adapt to a rapidly changing environment. The study has examined the relationship of transformational entrepreneurs, innovative behaviour, and change-related self-efficacy affecting employee readiness to change. The sample of 478 employees of MSE was collected and analysed using structural equation modelling (SEM). The finding indicated a significant association between transformational entrepreneurship and employees' readiness to change. The result also established a substantial role of employee's innovative behaviour as a mediating variable between the above-stated relationship and change related to employee self-efficacy as a moderating variable between transformational entrepreneurship and employees' innovative behaviour.

Online publication date: Mon, 03-Mar-2025

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