Contingent effects of coping strategy in participative-entrepreneurial leadership and women-owned small family business performance

Purpose This study examines the influence of Participative–Entrepreneurial Leadership (PEL) on business performance in women-led small family businesses (SFBs) and investigates how coping strategy (CS) moderates this relationship. It addresses the need for context-sensitive leadership models that reflect the dual entrepreneurial and relational demands faced by women business owners (WBOs). Design/methodology/approach Grounded in Sustainable Family Business Theory (SFBT) and the Entrepreneurial Resilience Framework (ERF), the study applies a cross-sectional design. Survey data from 305 registered WBOs in Malaysia were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct and moderating effects. Findings The results indicate that PEL is not uniformly effective. Inspirational innovativeness, empowering exploration, and interactive transformation are positively associated with business performance, while proactive opportunity recognition and supportive risk-taking are not. CS moderates these relationships asymmetrically: it strengthens only the effect of supportive risk-taking but dampens the positive impact of others, suggesting a potential misalignment between leadership and reactive coping under pressure. Practical implications Findings suggest leadership training and support for WBOs should emphasize relational and participatory capacities while aligning coping structures to overcome constrain entrepreneurial behavior. Policymakers and support organizations must consider the interaction between leadership and coping strategy when designing interventions for women-led SFBs. Originality/value This study introduces PEL as a multi-dimensional construct tailored to the socioemotional and entrepreneurial realities of WBO-led SFBs. It contributes to family business and gendered entrepreneurship literature by theorizing CS as a contingent moderator and highlighting the interplay between leadership and adaptive capacity in resource-constrained environments.