The Impact of Entrepreneurial Leadership and Network Capability on International Performance of SMEs in Vietnam: The Mediating Role of Strategic Adaptability in the Context of Environmental Dynamism

Abstract

This study aims to examine the mechanisms through which entrepreneurial leadership and networking capability influence the internationalization performance of small and medium-sized enterprises (SMEs) in Vietnam. Drawing on the integration of Upper Echelons Theory (UET) and Dynamic Capabilities Theory (DCT), the study evaluates the mediating role of strategic adaptability and the moderating role of environmental dynamism. Quantitative data were collected from 435 senior managers of SMEs and analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. The empirical results indicate that entrepreneurial leadership and networking capability have positive and direct effects on internationalization performance. Strategic adaptability partially mediates the relationship between entrepreneurial leadership and internationalization performance, but does not mediate the relationship between networking capability and internationalization performance. Furthermore, environmental dynamism significantly strengthens the impact of strategic adaptability on internationalization performance. Theoretically, this study offers novel contributions by clarifying the micro-to-macro mechanism that transforms leadership cognition into dynamic organizational capabilities (integrating UET and DCT), and enriches Contingency Theory by identifying the "critical threshold" of environmental dynamism in emerging markets. Practically, it provides managerial and policy implications to support the global integration process of SMEs.