SMEs’ international performance amidst turbulence: the role of entrepreneurial leadership in navigating network capability, and strategic agility

This study investigates the roles of entrepreneurial leadership, network capability, and strategic agility in driving the international performance of SMEs, while considering the moderating influence of environmental dynamism. Drawing on Upper Echelon Theory, Dynamic Capability Theory, the findings reveal that entrepreneurial leadership positively influences strategic agility and network capability, with strategic agility mediating the leadership-performance relationship. Network capability directly enhances both agility and performance, highlighting distinct dynamic capabilities crucial for international performance. Environmental dynamism strengthens the effect of strategic agility on performance but moderates the leadership-agility link, reflecting the contingent nature of these relationships. Theoretically, this research advances understanding of how top management characteristics shape firm-level dynamic capabilities and how environmental factors modulate these effects. Practically, it underscores the need for SME managers and policymakers to develop entrepreneurial skills, cultivate networks, and foster agility to adapt to changing global markets. This integrated framework offers a nuanced perspective on sustaining SME competitive advantage in dynamic international environments.