The effect of entrepreneurial leadership and employer branding on performance through engagement: Moderating effect of organizational trust

Informal Small and Medium Enterprises (SMEs) play a key role in their respective economies over the world particularly in the African continent. This paper reviews various theories on SMEs towards understanding the potential of the informal sector in the context of African countries. The paper uses a theoretical approach for the purpose of assessing the challenges that have affected the development of the informal SMEs sector over the years in both the developing and developed world. Economically developing countries in Africa pose unique challenges to informal SMEs development compared to the developed countries. The paper reviews the theories that define the rise to informality in Africa by identifying the key determinants for the emergence of informal SMEs. A conceptual framework for assessing informal SME’s potential for Africa is developed. The conceptual framework is based on the Fishbone diagram developed by Kaoru Ishikawa (1986). This paper discusses the intricacies of the applicability of the proposed conceptual framework to assess the potential of the informal SMEs in Africa and the way forward for the formalization debate.

From a global perspective, the business environment has become highly dynamic, unpredictable, and competitive due to external forces – mostly technology – that generate change. The aim of this study is to investigate the influence of digital technologies on South African business sectors. The sample includes small and medium enterprises (SMEs) in the KwaZulu-Natal province. Being qualitative by design, the study used semi-structured interviews for data collection, with eight interviews in the Durban area. SME managers were purposefully selected as participants based on their management positions in the business/company and that they oversee the business operation and understand the influence of digital transformation in the business. The interviews were then transcribed after data collection to determine any recurring themes. In the effectiveness of digital transformation, the study identified themes such as “gaining exposure” and “gaining effective sales figures” as a result of implementing digital transformation, which was indicated by six of eight participants. The findings showed that digital transformation significantly affects building customer relationships and ensuring easy accessibility of the business. The results further indicate online selling and digital marketing as the leading digital platforms successfully implemented by most South African SMEs. Lastly, the study revealed digital maintenance and rapid changes in technology as challenging factors. Moreover, the study recommends that South African SMEs implement more available digital technologies to gain additional exposure.

The “new normal” era has made remote work the new standard, making the use of artificial intelligence (AI) increasingly important. Therefore, this study aims to investigate employee perceptions of change leadership in the application of AI that affects employee engagement and productivity according to the resource-based view (RBV). Of the 467 respondents who worked in the banking industry in West Sumatra province, Indonesia, only 359 met the eligibility requirements. The partial least squares (PLS) analysis shows a direct relationship between AI and employee engagement (p < 0.05) and productivity (p < 0.05), as well as employee engagement and employee productivity (p < 0.05). The effect of AI on employee productivity is mediated by employee engagement (p < 0.05), but the moderating effect provided by change leadership is not significant (p > 0.05) in increasing employee productivity. These findings will help managers create a positive work environment through the application of AI, resulting in higher employee engagement and productivity. Specifically, these findings help organizations integrate AI more effectively and provide managers with a comprehensive understanding of the considerations needed to increase productivity through employee engagement for organizational competitiveness.

Acknowledgment
The authors thank Universitas Negeri Padang for helping finish this article. We also appreciate the cooperation and support of each member.