This study examined the relationship between entrepreneurial leadership and innovative behaviour of small businesses in Rivers State, Nigeria, and assessed the moderating role of organisational climate. Drawing on a census of 298 representatives (owners, managers, and supervisors) from 85 registered packaged water companies, the study employed a cross-sectional design and collected data through a structured questionnaire The instrument validity was determined through expert review and reliability was determined through, Cronbach, Alpha coefficient. The analysis of data was done using the Kendall rank correlation and moderated regression analysis. Results showed that entrepreneurship leadership contributes significantly to the innovativeness behaviour of employees especially in generation, championing and implementation of ideas. Results further demonstrated that organisational climate positively moderates this relationship, amplifying the impact of entrepreneurial leadership on innovation when the environment is supportive, collaborative, and psychologically safe. The study contributes to entrepreneurship and innovation scholarship by highlighting the contextual importance of leadership practices within small businesses in emerging economies. It concludes that entrepreneurial leadership is a key driver of innovation, but its effectiveness depends on the quality of the organisational climate. Practical recommendations include the adoption of leadership practices that empower employees and structured policies that cultivate openness and collaboration, thereby strengthening competitiveness and business sustainability.
GOLLEY et al. (Mon,) studied this question.
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