Purpose – This study investigates the impact of leader commitment on operational performance in small and medium sized enterprises (SMEs), focusing on the mediating roles of resource allocation, continuous improvement, and supplier performance monitoring. Design/methodology/approach – Data were collected from 250 SME leaders and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct and indirect effects. Findings – Leader commitment significantly influences operational performance both directly and indirectly through the mediators. Resource allocation provides a foundational link but has a relatively weaker effect. Continuous improvement is the strongest mediator, highlighting the importance of innovation and adaptability. Supplier performance monitoring also exerts a significant direct effect, emphasizing the role of external oversight in supply chain efficiency. Research limitations/implications – The cross-sectional design limits causal inference, and the findings may not generalize beyond SMEs or different industrial sectors. Longitudinal studies and multigroup analyses are recommended. Practical implications – SMEs can enhance operational performance by fostering integrated leadership strategies that combine effective resource management, continuous improvement, and robust supplier monitoring systems. Originality/value – This study provides a comprehensive model illustrating how leadership, internal processes, and external monitoring interact to drive operational excellence in SMEs, offering actionable insights for leadership-driven strategic planning.
Suddin et al. (Wed,) studied this question.