Government support, leadership and financial performance of MSME restaurants in Egypt: A moderated mediation model

Abstract

Grounded in the resource-based view and leadership theory, this study seeks to explore the interactive relationship between government policies, programmes, and the financial performance of micro, small, and medium-sized enterprise (MSME) restaurants, while also considering the moderating influence of open leadership. Quantitative data were gathered from 179 managers/owners of MSME restaurants in Egypt. The analysis was performed utilising model 15 of the PROCESS macro for SPSS. The findings indicate that government policies exert a favourable and statistically significant influence on financial performance. Nevertheless, the direct impact of government programmes on financial performance was found to be insignificant. Government policies directly influence financial performance, predominantly when the manager or owner demonstrates a low degree of open leadership. Conversely, when the manager or owner expresses a willingness to engage with the implemented programmes, this willingness emerges as the principal avenue for enhancing financial performance. This research provides practical implications by guiding policymakers in designing more effective support mechanisms and helping restaurant managers/owners understand how leadership openness can enhance the benefits of government initiatives.