Enhancing Corporate Entrepreneurship Through Leadership Styles: The Role of Organizational Commitment and Employee Engagement as Mediators

In an increasingly dynamic business environment, leadership plays a pivotal role in fostering innovation and entrepreneurial initiatives within organizations. This study investigates how leadership styles influence corporate entrepreneurship within Ghana’s financial sector, focusing on the mediating roles of organizational commitment and employee engagement. The research aims to understand how transformational, transactional, and laissez-faire leadership styles contribute to entrepreneurial activities by fostering organizational commitment and employee engagement. A quantitative research approach was employed, using a mono-method survey design. Stratified sampling targeted managerial and non-managerial staff of Ghana Commercial Bank, yielding 378 valid responses. Structural Equation Modelling (SEM) was used to analyze direct and mediated relationships among leadership styles, organizational commitment, employee engagement, and corporate entrepreneurship. The findings reveal a positive relationship between leadership styles and corporate entrepreneurship. Transformational leadership showed a direct but modest effect on corporate entrepreneurship. Organizational commitment did not mediate the leadership-entrepreneurship link significantly. However, employee engagement emerged as a marginally significant mediator, underscoring its importance in fostering entrepreneurial activities. Leadership styles, particularly transformational leadership, play a critical role in driving corporate entrepreneurship. The findings emphasize the need for organizations to prioritize employee engagement strategies to enhance entrepreneurial outcomes. The study highlights the limited mediation of organizational commitment, suggesting other potential mediators for future research.