The Relationships Between Leadership Styles, Entrepreneurial Orientation, and Knowledge Sharing in the Tourism and Hospitality Industry

Introduction

Tourism and hospitality organizations are characterized by their emphasis on customer experience, reliance on skilled employees, adaptability to external factors, attention to the physical environment, and collaboration with local communities. These unique features highlight the industry's commitment to exceptional service, cultural sensitivity, flexibility, immersive experiences, and community engagement. However, the industry also faces challenges such as external factors, intense competition, seasonality, regulatory complexities, and the need to embrace technological advancements. Internally, managers in tourism and hospitality organizations must address the challenges of managing a diverse workforce, overseeing operations, financial management, staying current with technology, and fostering innovation. This includes recruiting and retaining diverse talent, promoting teamwork, optimizing departmental coordination, monitoring budgets, adapting to technological changes, and encouraging creative thinking for continuous improvement. Successfully navigating these challenges requires organizations to navigate uncertainties, differentiate themselves, effectively manage staffing and resources, comply with regulations, and remain up-to-date with technological advancements in order to meet evolving customer expectations (Al-Romeedy, 2023; Al-Azab & Al-Romeedy, 2023).

In the dynamic and competitive business environment, different leadership styles such as transformational (TRL), empowering (EML), and transactional leadership (TCL) have a significant impact on entrepreneurial orientation (EO) and knowledge sharing (KS)(Leite & Rua, 2022; Au, 2018; Paudel, 2020; Son et al., 2020; Xue et al., 2011; Hussain et al., 2017). TRL is characterized by leaders who inspire and motivate their followers to go beyond their self-interests and work towards a shared vision. This leadership style fosters creativity, innovation, and risk-taking among team members, making it particularly relevant to EO. It encourages employees to think innovatively, explore new ideas, and actively seek entrepreneurial opportunities (Shelton, 2012). On the other hand, TCL focuses on setting clear expectations, providing rewards and recognition for achieving goals, and ensuring adherence to established procedures (Basham, 2012). TCL creates a stable and structured environment that is essential for entrepreneurial activities. It cultivates an environment where employees feel motivated and empowered to engage in entrepreneurial initiatives (Afsar et al., 2017).

Furthermore, EML has a positive influence on EO and enables employees to explore and capitalize on entrepreneurial opportunities within the organization (Li et al., 2021). Likewise, TRL creates a supportive and collaborative environment that promotes open communication and teamwork (Shelton, 2012). They serve as role models for KS, actively promoting a culture of learning and emphasizing the importance of sharing insights, expertise, and information with others (Son et al., 2020). Similarly, TCL encourages and rewards KS through performance management and recognition systems (Ugwu et al., 2020). Additionally, EML fosters a sense of ownership and empowerment among employees, which increases their willingness to share knowledge. It creates an environment where employees feel valued, trusted, and motivated to contribute their unique perspectives, ideas, and expertise to the collective knowledge of the organization (Bucher et al., 2022; Al-Romeedy, 2023).