The influence of creative leadership dimensions on financial crisis management through the mediating role of conflict prevention and internal control: Case of SMEs in North Lebanon

Type of the article: Research Article AbstractCreative leadership is vital for managing financial crises. Leaders with vision, motivation, and adaptability steer organizations toward stability and success. They anticipate potential crises by establishing conflict prevention mechanisms and internal controls, thereby ensuring resilience and enabling proactive, calm management during crises. Creative leadership is increasingly important for small and medium-sized enterprises in unstable regions like Lebanon. This paper examines how creative leadership dimensions impact financial crisis management through the mediating roles of conflict prevention and internal control. This 2024 study used a questionnaire completed by 157 employees at Lebanese SMEs. Principal component analysis (PCA) identified three creative leadership dimensions: inspiring vision, adaptability, and self-motivation. Results showed that inspiring vision and adaptability affect financial crisis management. Structural equation modeling (SEM) confirmed that inspiring vision and adaptability significantly influence crisis management, mainly through the mediating effects of conflict prevention and internal control. Conflict prevention had the strongest direct effect on crisis management, with internal control showing a similar impact. Therefore, conflict prevention and internal control mediate the relationship between inspiring vision, adaptability, and successful financial crisis management. Adaptability and internal control are key pillars for effectively responding to financial crises. Creative leaders utilize crisis management models and controls to address financial crises. To enhance financial resilience, organizations should implement controls and proactive conflict prevention.