The stress-innovation link: leadership and strategies of female entrepreneurs in diverse economies

Purpose This study aims to explore the impact of occupational stress (OS) on the innovative entrepreneurial capabilities (IEC) and innovative work behavior (IWB) of female entrepreneurs operating in dissimilar economies. Canada, an advanced economy, and Pakistan, an emerging economy, provided contrasting economic backgrounds for the investigation. Design/methodology/approach Data collected from 106 female entrepreneurs (53 each from Canada and Pakistan) were quantitatively analyzed through partial least squares structural equation modeling. In addition, funnel approach (a secondary technique) was used to understand the in-depth trends and variation among contrasting economies. Findings The results from this study show that IEC and IWB are statistically significantly affected by OS (IEC = 0.001 < 0.05; p < α; IWB = 0.000 < 0.05; p < α). The causes of stress for Pakistani female entrepreneurs are commonly personal factors, while organizational factors affected Canadian female entrepreneurs frequently. Consequences of stress relating to behavioral and physical deterioration are evident among Pakistani female entrepreneurs, while emotional symptoms are evident among Canadian female entrepreneurs. Practical implications Female entrepreneurs need to understand the relationship between their economic background and the likely impact of OS on their IEC and IWB. Furthermore, appropriate measures suited to economic context are required in managing the effect of OS by female entrepreneurs. Originality/value This study contributes to the literature on entrepreneurship and effective leadership by highlighting the occupational stressors that affect female entrepreneurs operating in contrasting economies and the impact of these stressors on their IEC and IWB.