An investigation of factors affecting Australian small and medium enterprise performance during The Pandemic

Abstract Small and medium enterprises (SMEs) are the backbone of many countries but suffer low survival and growth rates. This research investigated the role of ambidextrous leadership (AL), entrepreneurial orientation (EO), and organisational innovation (OI) on SME firm performance (FP) (customer s...

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Main Authors: Ali Gungor, Catherine Jill Bamforth, John Dalrymple
Format: Article
Language:English
Published: SpringerOpen 2025-07-01
Series:Journal of Innovation and Entrepreneurship
Subjects:
Online Access:https://doi.org/10.1186/s13731-025-00532-6
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author Ali Gungor
Catherine Jill Bamforth
John Dalrymple
author_facet Ali Gungor
Catherine Jill Bamforth
John Dalrymple
author_sort Ali Gungor
collection DOAJ
description Abstract Small and medium enterprises (SMEs) are the backbone of many countries but suffer low survival and growth rates. This research investigated the role of ambidextrous leadership (AL), entrepreneurial orientation (EO), and organisational innovation (OI) on SME firm performance (FP) (customer satisfaction and financial performance) in Australia during the Covid-19 pandemic. Data from 344 SME owners/managers was collected and analysed using structural equation modelling. The results showed partial validation between AL opening behaviour and both FP outcomes and substantial and positive influence between closing AL behaviour and both FP outcomes. Contrary to expectations, results showed a significant negative association between EO and customer satisfaction and a weak correlation between EO and financial performance. OI was identified as an antecedent for both FP outcomes confirming existing research in this area. The findings called for post-pandemic cash-strapped governments to set up a dedicated department in their Productivity Commission (or similar body) to keep abreast of emerging SME research outcomes to inform more effective and efficient SME policy. Managers are advised to undertake low level experimentation to identify optimum alignment between FP goals and environmental context, choice of innovation type and leadership approach (AL & EO) to achieve desired FP outcomes.
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spelling doaj-art-a1645d2aad0243ff8a4835fccc8d969b2025-08-20T03:45:39ZengSpringerOpenJournal of Innovation and Entrepreneurship2192-53722025-07-0114114010.1186/s13731-025-00532-6An investigation of factors affecting Australian small and medium enterprise performance during The PandemicAli Gungor0Catherine Jill Bamforth1John Dalrymple2Department of Management, Monash Business School, Faculty of Business and Economics, Monash UniversityDepartment of Management & Marketing, School of Business, Law and Entrepreneurship, Swinburne University of TechnologyDepartment of Management & Marketing, School of Business, Law and Entrepreneurship, Swinburne University of TechnologyAbstract Small and medium enterprises (SMEs) are the backbone of many countries but suffer low survival and growth rates. This research investigated the role of ambidextrous leadership (AL), entrepreneurial orientation (EO), and organisational innovation (OI) on SME firm performance (FP) (customer satisfaction and financial performance) in Australia during the Covid-19 pandemic. Data from 344 SME owners/managers was collected and analysed using structural equation modelling. The results showed partial validation between AL opening behaviour and both FP outcomes and substantial and positive influence between closing AL behaviour and both FP outcomes. Contrary to expectations, results showed a significant negative association between EO and customer satisfaction and a weak correlation between EO and financial performance. OI was identified as an antecedent for both FP outcomes confirming existing research in this area. The findings called for post-pandemic cash-strapped governments to set up a dedicated department in their Productivity Commission (or similar body) to keep abreast of emerging SME research outcomes to inform more effective and efficient SME policy. Managers are advised to undertake low level experimentation to identify optimum alignment between FP goals and environmental context, choice of innovation type and leadership approach (AL & EO) to achieve desired FP outcomes.https://doi.org/10.1186/s13731-025-00532-6SMEsAmbidextrous leadershipEntrepreneurial orientationOrganisational innovationFirm performanceAustralia
spellingShingle Ali Gungor
Catherine Jill Bamforth
John Dalrymple
An investigation of factors affecting Australian small and medium enterprise performance during The Pandemic
Journal of Innovation and Entrepreneurship
SMEs
Ambidextrous leadership
Entrepreneurial orientation
Organisational innovation
Firm performance
Australia
title An investigation of factors affecting Australian small and medium enterprise performance during The Pandemic
title_full An investigation of factors affecting Australian small and medium enterprise performance during The Pandemic
title_fullStr An investigation of factors affecting Australian small and medium enterprise performance during The Pandemic
title_full_unstemmed An investigation of factors affecting Australian small and medium enterprise performance during The Pandemic
title_short An investigation of factors affecting Australian small and medium enterprise performance during The Pandemic
title_sort investigation of factors affecting australian small and medium enterprise performance during the pandemic
topic SMEs
Ambidextrous leadership
Entrepreneurial orientation
Organisational innovation
Firm performance
Australia
url https://doi.org/10.1186/s13731-025-00532-6
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