Competitive advantage in small and medium enterprises through entrepreneurial leadership entrepreneurial orientation and learning orientation

Small and medium-sized enterprises (SMEs) serve as economic backbones in most countries but face unique challenges in achieving a sustained competitive advantage. Viewing from the resource-based view theory (RBV), this study examines how entrepreneurial leadership and different types of orientations, as critical intangible resources, help SMEs enhance their competitive advantage. The study conducts a survey with a dataset consisting of 173 managers and 454 employees. Our results confirm that entrepreneurial leadership fosters entrepreneurial orientation and learning orientation. Moreover, self-efficacy and working locus of control moderate these relationships: employees with high self-efficacy and internal working locus of control exhibit the strongest positive outcomes of entrepreneurial leadership, entrepreneurial orientation and learning orientation. Those with low self-efficacy but external work locus of control derives weaker advantages. Furthermore, our multifaceted framework demonstrates that entrepreneurial leadership’s influence on competitive advantage is mediated through an intricate and interactive process involving employee learning and behavior, an essential concept within RBV. As a result, we contribute to extending RBV theory by proposing new approach through entrepreneurial leadership. From a practical point of view, the findings guide practitioners to foster employees’ entrepreneurial capabilities and learning, creating sustained competitive advantage. Beyond these theoretical and practical contributions, the study also carries relevance for sustainable development, particularly SDG 8, by showing how entrepreneurial leadership and learning-based capability development can help SMEs strengthen productive capacity, support employee development, and sustain long-term economic competitiveness.