The role of absorptive capacity and innovation climate in entrepreneurial leadership’s influence on innovation performance in Northeast China startups

Purpose This study aims to investigate the impact of entrepreneurial leadership on the innovation performance of new venture enterprises in Northeast China. Utilising the upper echelon theory (UET), resource-based view (RBV) and a quantitative research design with SmartPLS analysis, it seeks to understand how entrepreneurial leadership influences innovation outcomes. Design/methodology/approach Grounded in the upper echelon theory (UET) and resource-based view (RBV), this paper constructs a structural equation model to establish the mediating roles of innovation climate and absorptive capacity in the relationship between entrepreneurial leadership and innovation performance. The study sample comprises 398 employees from new venture enterprises in Northeast China. The analysis uses SmartPLS to validate the mediating effects of organisational innovation climate and absorptive capacity on the relationship between entrepreneurial leadership and innovation performance. Findings The study confirms that innovation climate and absorptive capacity mediate the relationship between entrepreneurial leadership and innovation performance, exerting a positive influence. Originality/value This research fills the gap in the literature regarding the impact of entrepreneurial leadership on the innovation performance of new ventures. Furthermore, it elucidates the mediating mechanisms of entrepreneurial leadership on innovation performance, contributing insights of both academic and practical significance.