The influence of entrepreneurial leadership on employee improvisation in new ventures: based on cognitive-affective processing system framework

Employee improvisation is valuable in seizing opportunities, creating radically new ideas and dealing with unexpected events. It is increasingly important for new ventures in unpredictable environments. However, as an important organizational factor, the mechanism of leadership style on employee improvisation has not been fully explored. Against this background, the purpose of this study is to examine the impact of entrepreneurial leadership on employee improvisation. Specifically, drawing on cognitive-affective processing system framework and regulatory focus theory, the study investigates the dual mediating role of workplace spirituality and positive affect between entrepreneurial leadership and employee improvisation and the moderating role of promotion focus in such relationships.

Using time-lagged data from 327 leader–employee dyads from new ventures in China, the study tests all hypotheses using hierarchical multiple regression and bootstrapping analysis in IBM SPSS 26.0.

The results reveal that entrepreneurial leadership is positively related to employee improvisation, and this link is mediated by workplace spirituality and positive affect. Additionally, moderated path analysis indicates that promotion focus strengthens the direct effect of workplace spirituality and positive affect on employee improvisation and the indirect impact of entrepreneurial leadership on employee improvisation.

The findings also provide some practical suggestions for managers on how to promote employee improvisation. Managers can promote employee improvisation by cultivating their entrepreneurial leadership. The results also constitute valuable information for new ventures in terms of suggesting steps that can be taken to promote employee improvisation in the workplace, particularly in regard to employees' cognition and affect. In addition, personality traits such as promotion focus should also be considered in recruitment.

The study makes an original contribution by showcasing the complex cognitive and affective mechanism of entrepreneurial leadership on employee improvisation. Through the dual mediating role of workplace spirituality and positive affect, the study expands the research results on employee improvisation and enriches the application of cognitive-affective processing system framework in the entrepreneurship field. The study also provides deeper insights into promotion focus research by exploring the boundary conditions of employee improvisation.