Impact of entrepreneurial leadership, Social media, digital technology, Entrepreneurial orientation and innovation on business performance in the handicraft sector: Talent management as mediating construct

Abstract

The purpose of this paper is to analyze the impact of various dynamic capabilities (Innovation (IN), entrepreneurial leadership  (EL), Social media (SM), and digital technology (DT)) on Business performance (BP). This study also analysis the mediating impact of talent management(TM), and Entrepreneurial orientation (EO) between EL, and Business performance. The reason for this is that in the handicraft industry SM, DT TM, and SR impact on business performance are still not fully understood. We have adopted a survey-based methodology from 410 handicraft artisans or entrepreneurs. Data was empirically analyzed to test the theoretical model of mediation through Smart partial least square method (SMART PLS-SEM) software. The study's findings prove entrepreneurial EL improves Business performance whereas the association between Social media (SM) and BP is insignificant. The mediating impact of Talent management, EO, and strategic resilience was statistically positive and significant and proved that bridging between BP and all three mediators supports and makes stronger EL for boosting business performance. Innovation, and digital technology, positively affect Business performance. This study explores artisans' formal entrepreneurial EL style. This study is unique because the Dynamic capability theory (DCT) as an extension of the resource-based view (RBV) has been used for critical business factors like EL, strategic resilience, Business performance, digital technology, innovation, and talent management in the handicraft sector will be extended. This study also proposes a new Digital capability view (DCV) for future study. This study will explore the theoretical and practical understating of (DCT) with managerial use of EL, Innovation, and TM for boosting Business performance.

Introduction

As time changes in the industry sector, COVID-19 has affected several sectors from 2020 to 2022. After that whole working role of human resources was turned to using digital technology, the use of AI, innovative ideas, and awareness for boosting India's economy in the handicraft sector (Zahra et al., 2006). To resolve the issues and enhance business performance there is a need for the utilization of various dynamic capabilities (such as digital technology, innovation (IN), AI use, Strategic resilience, and EL, for any organization's efficiency to respond to market transformation (Anning-Dorson, 2021; Herhuasen et al., 2020). It ensures a more harmonious relationship between the firm's inner workings, the coordination of its networks, and the needs of its customers (Furr et al., 2012; Calantone et al., 2004).

Strategic resilience has been the subject of some theoretical exploration. However, there is an absence of facts to support this hypothesis. Further, opinions vary widely regarding how it should be conceived (Combe, 2012; Katsaros et al., 2020). Further Entrepreneurial orientation (EO) contributes to organizational resilience by facilitating adaptation to a changing environment and laying the framework for enhanced Performance (Anning-Dorson, 2021; Miller, 1983).

Entrepreneurial leadership (EL) is also providing the best facility to motivate and provide training, and capability development programs for and motivate them toward business performance. Even this is not directly seen but through other ways of the knowledge management process. Knowledge entrepreneurship is an entrepreneurial skill that enhances knowledge seeking in the current scenario and adopting digital technology, speeding up the knowledge management process which has a crucial role in business performance. Social media become marketing leaders for sailing and purchasing to enhance e-commerce (Das et al., 2016; Shane, 2010).

The premise is that EL can directly affect entrepreneurial orientation and strategic resilience, (Anning-Dorson, 2021; Combe, 2012). However, other researchers have found that bad EL is also bad for businesses and workers (Kanwal et al., 2019; Burke, 2017; Yadav et al., 2023a; Krasikova et al., 2013). Despite calls for more studies (Anning-Dorson, 2021; Brozovic, 2018; Combe, 2012), few empirical works investigate the influence of EL, IN, EO, SM, and DT SR on Business performance. A mediating factor affects these independent or dependent factors, EO (between EL, and BP), and talent management. Organizational direction is set by EL (Nowak, 2021; O'Reilly et al., 2010), strategic actions are heavily influenced by EL (Katsaros et al., 2020), and organizational quiet is enforced in large part by entrepreneurial EL (Nowak, 2021). Brozovic (2018) argues that to meet customer demands and boost productivity, firms must strengthen their resilience by utilizing SM, TM, DT, IN, and EL as internal capabilities (Fachrunnisa et al., 2020; Pantouvakis and Vlachos, 2020). Details about the products are widely shared and quickly tracked down using mobile, computers, and social media.

Some handcraft sectors are hesitant to adopt  good business performance for several reasons, even though EL  popularity is rising (Beck et al., 2005; Fomin et al., 2005). For instance, only 40% of the handmade industry in the United States sells its products online (Jahanshahi et al., 2013; Weiss, 2004). This suggests that not all businesses have a well-developed online presence and that many owner-managers face other challenges in operating their companies (Abebe, 2014).

Nowadays social media plays a very important role in the promotion and addition of handicraft products that we improve to reach out at the global level and remote areas such highly and mountain areas where traditional marketing suffers. It has been possible at local to global levels to sell and buy traditional, durable, utility, and sustainable handmade products.

However digital technology like mobile and handicraft apps, and cart apps developed by different firms, and they have also created their own website, for example, Qallai Pvt Limited Patna, Bihar based small firm supporting production, marketing, exporting, at national and international levels (a traditional handicraft-based firm is using AI, its developed app, Global oriental rugs, Triveni carpet, DP Soni Shazar stone Pvt Ltd, Bhalla carpet, Khanna carpet, Hazi Ilia's carpet, Deva pottery firm, etc. have their app and website along with youtube channel for add and promotion of their craft product at local to the global level (Amalanathan & Reddy, 2024).

There is a need for bridging Resources (talent management and EO) and Dynamic capability (AI, DT, IN, and EL along with strategic resilience) for the variables that affect BP in the craft industry (Combe, 2012; Wales et al., 2013).

One of these potential mediating factors is the availability of human resources (Combe, 2012). More and more people are paying attention to talent management and the EO of these talents because of its power to businesses Zambrano et al., 2024; ; Brozovic, 2018; Johnson et al., 2003).

Many developing countries are predicted to undergo a cultural shift from industrial to entrepreneurial orientation, with EL and focus emerging as key factors driving economic growth (Cho & Lee, 2018; Escrig-Tena et al., 2011a, 2011b). Some academicians have attempted to explore components influencing the BP of the handicraft sector as the startup and effort in this way radically growing (Park et al., 2020; D'Angelo & Presutti, 2019). Researchers zeroed concentrate on entrepreneurship and how small businesses are built on the backs of entrepreneurial acts and strategic decisions (Basco et al., 2020; Pantouvakis and Vlachos, 2020). According to multiple studies (Engelen et al., 2014; Morgan et al., 2015), a company's entrepreneurial EL significantly affects how effectively an entrepreneurial mindset is implemented. It has been recognized, however, that traditional entrepreneurial EL tactics for more excellent firm performance are ineffectual at the current time (Hmieleski et al., 2012; Lumpkin & Dess, 1996). Previous research has considered various mediators to highlight the connections better and clarify the impact on Business performance.

Research gap

Even current studies go beyond traditional marketing, trade, and fare-based marketing. Even there is a lack of proper studies on how to use social media and digital technology to enhance the marketing and supply affected by E-commerce. Second no study has been done use of AI and its utility in handicraft product marketing (Kaur et al., 2023a; Hashmi et al., 2021) some studies done by (Nasuton et al., 2021) on how to use e-commerce in small industries however they did not study about the impact of social media and digital technology and INO for enhancing business performance.

Even from different literature, it has been observed that there is a lack and research gap of proper study about the relationship of SM, DT, INO, (TM) with EL, and BP and the mediation effect of TM on these variables in the handicraft sector (Al Nuaimi et al., 2022; Cassar, 2014; Miller, 1983). As a result, there are constraints on research on the links between IN, SM, EL, EO, and handicraft BP (Mathivathanan et al., 2017; Roh et al., 2015; Miller et al., 2011).

Contribution of the study

This paper makes three crucial contributions: first, by identification and critical review of the impact of EL, SM, INO, and SR on BP and the impact of talent management on Business performance.

As we know, TM should be assumed as operant resources because TM acts as internal resources such as systems, assets, and digital technology (Singla et al., 2023; Tripathi et al., 2023; Uhl-Bien & Arena, 2018). Second, this study explores the dynamic capabilities (IN, SM, and DT by finding whether EL and these explained capabilities affect Business performance and whether TM mediates entrepreneurial EL and BP. Third, this study contributes new insight into the interplay among, SM, IN, and EL that support BP in the craft industry even though there is less expansion of AI in the handicraft industry as this is new for this craft industry. And this will fil the gap in upcoming time, and strategic silence to fill the knowledge mentioned above in the handicraft sector. So three research questions were raised during the literature study.

RQ1: What is the impact of Innovation, digital technology, and Social media (SM)on business performance in the handicraft industry?

RQ2: How does entrepreneurial leadership  influence business performance?

RQ3: Is talent management mediating EL and BP in the craft industry?

So these research questions will be answered by empirically testing of impact of EL, Innovation, and digital technology AI on business performance that prioritizes TM to create conditions favorable to enhanced performance (Wadstrom, 2019; Jansen et al., 2009; Li et al., 2009).

Therefore, DCT and RBV on better business performance will be described for utilization, and variables supporting this research work are unique as DCT has been used as an extension of the RBV and introduction of digital dynamic capability theory(Yadav et al., 2024a) is a unique explanation of social media, SM, digital technology (Teece, et al., 2007), RBV (Barney, 1991, 2001) is supporting base for DCT as talent management is an important resource for boosting business which also boosts the economy.

The recent research aids practitioners by attempting to piece together the results of leaders' experiences, capability values, personalities, digital technology, and use of AI and other human attributes on firm Performance. Research into the entrepreneurship process can learn a lot from this novel approach to TM, DT, SM, EL, and SR (Fernandez-Perez et al., 2016). The second part of this article provides a theoretical justification for AI, DT, and IN as dynamic capability and TM, EO, and SR roles in mediating the relationships among strategic resilience, entrepreneurial EL, and, finally, Business performance (Iqbal, 2020; Thunnissen, 2016; De Boeck et al., 2018).

The objective of the study is to analyze the impact of various dynamic capabilities such as SM, DT, IN, EL, and SR to influence BP in the current situation. By extension, how TM influences BP as a mediator, especially in the handicraft sector and its artisans. The research concludes with theoretical and managerial implications for improved small-scale industrial management and government initiatives to foster an entrepreneurial spirit in the craft industry and enhance artisan skills (Escrig-Tena et al., 2011a, 2011b; Ren & Guo, 2011). This highlights the need for further research into the best practices for incorporating the mediating impact of AI, and IN on BP.

The structure of the study is in the following format. Section 2 elaborates on the theoretical background and proposed hypothesis, including a literature review. Section 3 focuses on the research methodology, which contains the study's outline, data analysis, and measuring tools. Section 4 contains the result of data with validation of the proposed framework. Section five elaborates on the discussion conclusion and implication of the research.

Theoretical background and research hypothesis

Resource-based view (RBV)

According to Barney (1991), the profit enhancement of a corporation through collaboration and the use of valuable resources is emphasized by the resource-based theory. According to RBV, important firm resources are frequently hard to come by, difficult to copy, and lacking in direct alternatives (Yadav et al., 2024b)). Management consultants have referred to quick decision-making as a source of competitive advantage. The fundamental idea of this theory is the action and actual Behaviour of strategic resources (EO and TM), so the task-oriented managers in the business organization begin with the workflow process and look to issue solutions with system management.

Dynamic capability theory (DCT)

By extension of RBV, various dynamic capabilities such as EL, innovation, digital technology, and social media have affected the Business performance in the handicraft sector. According to Teece et al. (1997), Dynamic capability is the ability that reorganize and integrate external and internal skills, knowledge, resources and enhance the firms, and develop a positive competitive advantage by rapidly adapting new technology in a transforming environment. Entrepreneurial EL, Social media, innovation, and entrepreneurial orientation (proactiveness) are strong capabilities that can enhance the firm’s production and organizational performance. Even though we know that the handicraft sector is not much more affected by Social media (SM)as digital technology and innovation are taking place it has been seen that there is a crucial role of Social media (SM)in enhancing market attraction, products taking support of social media and creative new ideas for entrepreneur or startups. (Yadav et al., 2024a) Serval's previous study also used dynamic capability theory and related work dynamic skill and reconfiguration of resources which could use skill innovation as capability. So it is time that AI, INO, and digital technology which are part of the information and communication dimension are also correlated with dynamic capability. It is believed that IT and Organisational performance create competitive advantage. Digital technology is also a capability of firms and individuals (Liu et al., 2013; Teece, 2007).

Relationship among business performance (BP),  (EL), and (EO) entrepreneurial orientation

Entrepreneurs value risk-taking, and leaders organize and motivate the firm's operational system and employees to achieve these goals (Cogliser & Brigham, 2004).  EO and EL intersect to produce leaders (Gupta et al., 2004). EL focuses employees' efforts on obtaining the organization's long-term objectives (Carpenter et al., 2004). Since EL is an effort of a team working in the organization, belief and attitude significantly affect the result and direction of firms or organizations (Carpenter et al., 2004; Rastogi, 2003; Vecchio, 2002). Leaders are primarily viewed as having a solid impact on BP due to the often more superficial structures and fewer behavioral norms in established organizations (Kafetzopoulos & Gotzamani, 2022). As a result, the leaders of the Handicraft sector may have more leeway to make decisions, giving them a more significant impact on the firm's plans and results. Several research, including (Ensley et al., 2006; Lumpkin & Dess, 1996; Wales et al., 2013), have highlighted EL's significance in achieving entrepreneurial goals. In addition, there has been a requirement for developing EL styles consistent with the modern entrepreneurial environment. Leaders who inspire their teams to think beyond the box have been linked to tremendous entrepreneurial success (Kuratko, 2007; Shirokova et al., 2016). (Vecchio, 2002; Muchiri et al., 2015; Gong et al., 2013) These are just a few authors who have included transformational EL in their studies on entrepreneurial EL because of its efficacy and impact on employee innovation. For this research, RBV (Barney, 2001) and the DCT (Teece, et al., 1997) have been followed.

Entrepreneurialism is another well-known method for improving Business performance and digital innovation (Rani and Samuel 2016; Yadav and Tripathi, 2024). Miller (1983) developed a three-dimensional scale for assessing an individual's propensity toward entrepreneurship. The ability to think creatively, strategically, and boldly is the hallmark of an entrepreneur (Engelen et al., 2014; Resnick et al., 2016). In particular, the initial dimension of digital inventive capacity manifests itself when a small firm is predisposed to encourage original thoughts, approaches, and offerings (Yadav et al., 2022; Alkerdawy, 2016; Benitez et al., 2015). Proactivity refers to an organization's willingness to seize advantageous market conditions and create a first-mover advantage over rivals (Yadav et al., 2022; Tripathi et al., 2022b; Bos et al., 2019; Avolio & Bass, 2004; Huang Wang and Wang, 2013). Last, a company's propensity to take risks reveals its willingness to invest heavily in potentially dangerous ventures (Huang & Wang, 2013; Baker & Sinkula, 2009). Covin and Miller (2014) agree that entrepreneurial orientation is crucial to a firm's ability to expand and respond to shifting the condition of the market.

There is a strong correlation between an individual's entrepreneurial orientation and their actions and attitudes, emphasizing seeking out and seizing chances on their own (Huang & Wang, 2013; Alkerdawy, 2014). As Anning (2021) and Al Nuaimi et al. (2022) note, an entrepreneurial attitude that fosters diverse ideas enhances firms' responsiveness to environmental changes. An organization's propensity to veer off the beaten path and into uncharted territory indicates its entrepreneurial orientation (Yadav et al., 2024b, Eide et al., 2020).

Several studies (Engelen et al., 2015; Eide et al., 2020; Huang and Wang, 2013; Tomšič et al., 2015) have attempted to deduce the impact of EL on business proactivity, risk-taking, and innovation. For instance, research by Jung et al. (2008) explored a significant and fruitful association between EL and DT, particularly among transformational leaders, lending credence to the thought that there is a direct association of EO with EL. For followers to adopt an entrepreneurial mindset, leaders must motivate them to go above and beyond what is expected and take tremendous pride in their work (Walumbwa & Hartnell, 2011). Moreover, by implementing organizational changes, leaders can inspire staff to find novel approaches to vexing issues (Avolio & Bass, 2004). Additionally, supervisors delegate work based on the skill and experience of each employee (Yukl, 2013; Gunasekharan et al., 2000). They impact employees' entrepreneurial mindsets by showing empathy and role models and tailoring their interactions with each worker. However, most entrepreneurial orientation and entrepreneurial EL studies are conducted in larger organizations (Walumbwa & Hartnell, 2011). Therefore, it is necessary to design comprehensive research to investigate this connection in the context of handicraft industries. so first hypothesis has been proposed.

H1: EL is significantly and positively associated with EO

Rather than being viewed as a "direct" factor in a business performance EO has been viewed as a "contingent" one. Many studies, therefore, investigate EO as an influential mediating connection between EL and BP (Choi et al., 2018). However, current studies paid attention to EO in fostering BP, where an entrepreneurial mindset may flourish and be put into practice inside an organization. Some academics have hypothesized that particularly for handicraft sector enterprises, an entrepreneur's mindset is a decisive factor in their firms' success (Muchiri & McMurray, 2015). (EO) is seen as a "strong resource" within the framework RBV (Barney, 2001) because it encourages entrepreneurial development, and digital and innovative capacity building within the craft industry (Choi et al., 2018; Zawislak et al., 2012; Zeffane, 2014). Similarly, there is a mediating impact of EO between EL and BP as it strengthens the road map of EL for boosting BP in the craft industry. Handmade industries with limited resource access are forced to innovate, adapt, or perish. The handicraft industry with EO has a leg up on the competition thanks to its agility and propensity for rapid adaptation to market shifts. Aljanabi (2018) all provide empirical evidence for EO's favorable impact on the performance of handicraft artisans' businesses. It can't be denied that craft firms with EO have better results than their industry peers (Muchiri & Mcmurray, 2015). This results in higher quality products/services, happier customers, more sales, and a better brand image. The following is our proposal for the hypothesis.

H2: Business performance is positively affected by Entrepreneurial orientation.

H2a: EO has a mediating impact between EL and BP

Relataionshi among TM, EL, and business performance

Furthermore, EL is the driving force behind successful talent management. Talent management practices are just one aspect of an organization's culture, activities, and systems that leaders can shape (Schiemann, 2009). To reach organizational goals and implement the most influential business strategies, a company's people management practices must be dynamic and encompass recruitment, development, and retention . Capital sets apart talented workers who can make a difference and increase their companies' worth (Al Cappelli, 2008; Fachrunnisa et al., 2020). Talent management is "the systematic approach taken by senior management to identify, attract, develop, and retain those individuals who have a disproportionate impact on the organization's long-term success and customer satisfaction" (Thunnissen, 2016; Tomsic et al., 2015). EL and talent management correlate well with strategic resilience and DIC (Irtaimeh et al., 2016). Leaders who are up to the task are invested in their teams' skills, happiness, and longevity (Scullion et al., 2010). Sadeli (2012) argues that a company's success and performance may be guaranteed through talent management practices driven by its EL. Organizational leaders are responsible for the "constant upgrading of employees' knowledge and development of talents. Al Fachrunnisa et al. (2020) emphasized the importance of EL in ensuring the successful creation, maintenance, and application of talent management systems.

A leader's role is to identify the individuals with the necessary competencies and skills and oversee their further growth in those areas. Joyce and Slocum's (2012) research shows that leaders' efforts to develop and retain talent are crucial to the success of any organization. Schuler et al. (2011) note that top-level management's dedication, EL, and participation are vital to the growth and institutionalization of talent management. EL contributes to talent management by offering education, inspiration, and encouragement to workers at all levels. Furthermore, leaders motivate employees to work together to achieve a common vision by inspiring talented team members to do their best (Nuaimi et al., 2022; Ikbaal et al., 2020). As a result, we argue that good EL is the driving force behind efficient talent management and provide the following hypothesis to explain why:

H3: EL is positively related to talent management

Investments in talent management and their impact on company success have been the subject of numerous academic studies. These results have been confirmed across different sectors, even within the same industry, and at varying aggregation levels within organizations (Lewis & Heckman, 2006). It used to be that talent management efforts were concentrated on senior-level positions that were thought to impact the company's success significantly. Human resource management experts and academics agree that talent management strategies should have an end objective that benefits the company (Kumar et al., 2024a, b; Yadav et al., 2024c; Hamdi & Noor, 2020; De Boeck et al., 2018; Schuler et al., 2011). They concur that talent management is nurtured over time and that encouraging these teams is crucial to a firm's success (Zhang et al., 2019; Wang et al., 2015). Increasing profits, worker resilience, and corporate performance are important talent management objectives (Thunnissen, 2016; Stahl et al., 2012). Researchers often assume that a company's highest-performing personnel are responsible for its success because of how they think and act (Kumar et al., 2022a, 2022b; Roh et al., 2015; Engelen et al., 2013; Tang & Hull, 2012). Talent management is believed to increase organizational-level outcomes like innovation and financial performance through a mediating mechanism (Kaur et al., 2023b; Yadav et al., 2023a, 2023b; Kumar et al., 2023; Ratten, 2020b; Ratten, 2021a; Hamdi and Noor, 2020). According to Cappelli (2008), "Business performance is essentially supported by talent management. Many scholars highlight the importance of talent management's strategic fit with activities. So, a hypothesis has been proposed.

H4: Business performance is positively related to talent management

Given the arguments, we assume talent management mediates business performance and EL through strategic resilience. In this instance, talent management will also link the chain between EL style and organizational success (Manders et al., 2016; Mashhady et al., 2021). We hypothesize that talent management will serve as a bridge between EL and organizational success.

H4a:Talent management has a mediating impact between business performance and EL

Business performance, and talent management.

Bussines performance and strategic resilence are hallmarks of effective EL (Kafetzopoulos et al., 2020). "business performance" describes how well an organization uses its resources to meet its goals over a specified period. According to the literature, EL is one of the most fundamental business behavior factors because of its profound impact on employee relationships inside an organization. It is often believed that a firm's success may be attributed to its executives' ability to inspire their staff and make strategic use of available resources (Yadav et al., 2023d; Kafetzopoulos et al., 2022; Manders et al., 2016; Giritli & Oraz, 2004; Kanwal et al., 2019 Kumar et al., 2024a, b; Singla at ela., 2023; Rushita et al., 2023). Leaders inspire their teams by providing challenging objectives and acting as a source of support, delegation, participation, and commitment. They motivate workers to improve their skills to help the company succeed (Manders et al., 2016). According to Manders (2016), effective EL ensures that workers are inspired and motivated, that the organization is guided to its goals, that beneficial changes are implemented, and that its leaders are more self-aware. In addition, leaders provide direction for the organization's future and the resources necessary to get there (Schaubroeck et al., 2017). In addition to positively affecting organizational policy and strategy, leaders' abilities also decide how much of a company's resources may be devoted to R&D (Yadav et al., 2024c; Jia et al., 2022; Pantouvakis and Vlachos, 2020). Kafetzopoulos and Gotzamani's (2019) research shows that EL substantially impacts an organization's resources, including its workers, policy and strategy, innovation performance relationships, and more. Additionally, it is connected to the evolution of processes and services in a roundabout way. We can infer the following from the EL effects we observe:

H5:EL positively affects business performance

Relationship between social media(SM) and BP

Social media is an advanced user-generated platform run online mode. According to research conducted by Thackeray et al. (2008), it has been discovered that this type of content is more effective than conventional advertising communications in terms of influencing the attitudes and behaviors of other users. The apps based on the Internet that build and depend on the technology of Web 2.0 are the ones that have resulted in the creation of social media. Laroche et al. (2012) define Web 2.0 as a platform that enables multiple participants to continuously and collaboratively produce and develop software and content. The accessibility of online content creation has been made possible for the general public due to the extensive utilization of advanced social media, including X blogging, social networking, and wikis (Shi, et al., 2013; Westland, 2010).

Having realized that Web 2.0 applications are of great significance, organizations are currently constructing and maintaining public sites on social media platforms to raise the salience of their social networks, increase interest in their organizations, and establish interactions with the online public (Mathew et al., 2024; Kabra & Dass, 2024). Increasingly, organizations are beginning to recognize the importance of SM as a strategic tool. Both the government and businesses in India have begun to acknowledge the value of SM in the backdrop of the country. Therefore, to have an understanding of the prospective benefits of social networks, it is essential to explore the many reasons for using social media and the impact that it has on BP. So the proposed hypothesis has been put.

H6: Social media is positively and significantly associated with BP

The dynamic nature of the flexible and competitive business (Afsar & Masood, 2018) and the escalating company risks (Fontana & Musa, 2017) need the implementation of innovation. Innovation refers to new and creative thinking with the motivational and cognitive process of developing, introducing, and implementing new and digital ideas to offer new solutions and efficient with effective in ambiguous and difficult situations (Sawaean & Ali, 2020). Several studies acknowledge the Impact of innovation on BP in craft firms (Cai et al., 2019). Furthermore, research results by Iqbal et al. (2020) and Sarwoko (2020), show that Business performance is enhanced by Innovation and transformation of digital technology and has a significant effect on the behavior of employee innovation. The findings of the study done by Eshima and Anderson (2017) on MSME organizations revealed that innovation significantly influenced the creative and innovative behavior of employees.

H7: Innovation (INO) is positively associated with Business performance (BP)

A model of relations (Fig. 1) was developed using the study mentioned earlier hypotheses and corroborating theory to identify the impact of EL, EO, and BP. All hypothesized associations between variables were double-checked against existing empirical data. Figure 2 was designed through SMART-PLS software with a time indicator (Zhang et al., 2019) (Gutierrez-et al., 2018) and Yang et al. (2009), among others, investigate the link between digital innovative capacity and Business performance. Several recent academic articles have focused on DIC strategic potential to boost business performance. In particular, numerous studies shed light on the connection between various DTs and commercial success. Product innovation makes differentiating one's product from the competition possible and updating one's offerings to the market (Yadav et al., 2024a; Tripathi et al., 2023; Kumar et al., 2023; Otero et al., 2013). (Calantone et al., 2004) proposed that an RBV of innovation has Positive effects on entrepreneurial orientation and strategic resilience for these goods. This means that the ability to innovate processes should lead to developing the ability to innovate products (Calantone et al., 2004; Giritli & Oraz, 2004). This study advanced eight hypotheses.

Fig. 1

Proposed hypothesis. A model of relations (Figure 1) was developed using the study mentioned earlier hypotheses and corroborating theory to identify the impact of EL on strategic resilience,  talent management, entrepreneurial orientation, strategic resilience, and business performance. All hypothesized associations between variables were double-checked against existing empirical data. Figure 1 was designed through SMART-PLS software with a time indicator. Sources: Model designed by authors

Fig. 2

Structural equation model and path value. Sources: figure designed by authors

H8: There is a positive and significant relationship between DT and BP in the handicraft industry.

Moderating the impact of SR on BP with TM

Strategic resilience refers to the flexibility and adaptability of an organization's internal processes in the face of shifting external conditions (Herhausen et al., 2021; Brozovic, 2018). According to a literature analysis on the effects of strategic resilience, a company with a high degree of strategic resilience also has a high degree of Performance (Brozovic, 2018;). Strategic resilience is a crucial factor for gaining excellence because of the volatility of the business environment brought on by rapid technological innovation and globalization. Cingoza and Akdog (2013) found that businesses with high strategic resilience can better detect threats and identify or anticipate possibilities. Business performance can only be achieved if they seize the opportunity to make productive decisions (Nadkarni & Herrmann, 2010). Organizational inertia can be overcome, resources can be allocated, and employees can be inspired to be creative and innovative, all of which aid in discovering new business prospects (Li et al., 2010; Wadstrom, 2019). Organizational effectiveness, planning, communication, strategy, and process can all be improved through strategic resilience. As a result, strategic resilience is seen as crucial to the success and viability of the business (Harrigan, 2001; Xiu et al., 2017). Therefore, our hypothesis is the following.

H9: Strategic resilience is positively related to business performance.

A model of relations (Fig. 1) was developed using the study mentioned earlier hypotheses and corroborating theory to identify the impact of EL on strategic resilience, talent management, entrepreneurial orientation, strategic resilience, and business performance. All hypothesized associations between variables were double-checked against existing empirical data. Figure 2 was designed through SMART-PLS software with a time indicator.

Research methodology

Research design

After the questionnaire was translated, a second round of testing was performed, utilizing forward-backwards methods. To confirm the content validity of the questionnaire, it was pilot-tested on 40 registered handmade firms through interviews with firm management before distribution.

Random sampling was used to choose data for analysis. The Ministry of Micro Small and medium enterprises MSME maintained data about registered handicraft firms. This database drew a random sample of 410 Handicraft artisans with over 20 firms. The database listed the companies and their contact information. Organizational leaders conversing with the firm's strategy and management were emailed a questionnaire. The data was gathered over 12 weeks, from March to April 2023. A total of 430 businesses participated, for a respectable 22.3% response rate that is on pace with other studies. After discarding the incomplete or irrelevant surveys, 410 valid responses remained for statistical analysis. Responses were compared in many ways, including between early and late respondents (t-test) and between respondents whose firms ranged in size and industry (analysis of variance). There was no evidence of non-response bias due to the lack of statistically significant changes. Power loom accounted for 25% of the companies, pure handmade for 39%, and mixing craft firms for 36%. There were more women than men who participated (270 versus 140). The respondents had an average of 3.5 years of organizational experience, with 40.5% having less than a high school education, 14.4% having a master's or doctoral degree, and 45.6% having 5 or more years of experience. 68% of businesses have 20 or fewer workers, 6% have fifty, 20% have 20–30, and 6% percent have 50 or more. All data related to respondent information is given in Table 1.

Measures

All of the instruments utilized in this research are based on tried-and-true metrics that have been extensively researched and confirmed to be accurate. Responses for each dimension were recorded using a 7-point Likert scale ranging from (1) disagree entirely to (7) completely agree. In particular, we utilized the EL scales developed by (Yadav et al., 2024a; Nowak, 2021; Song & Gu, 2020; Tomsic et al., 2015). We have adopted this scale to characterize a leader who can communicate with others effectively, is dedicated to the firm's strategy and goals, is resilient in completing tasks in response to environmental demands, gives employees a voice, and knows how to motivate their teams to maximize productivity. Miroshnychenko et al. (2021) developed measures of a company's proactive and reactive capabilities in the face of environmental change, and these five items were accepted for the strategic resilience construct. We drew our talent management measurement items from the conceptual work (Yadav et al., 2023c; Nowak, 2021; Son et al., 2020; Song & Gu, 2020; Alkerdawy, 2016; Farooq, 2016). Consistent with prior studies (e.g. El Dahshan et al., 2018), we accounted for respondents' gender, length of service, level of education, and industry when analyzing their impact on strategic resilience and other possible explanations (Liu et al., 2013).

Data analyses

Evaluation model

According to Hair et al. (2010), the latent variables in the reflective measurement model are the most critical factors in explaining the link between the independent and dependent variables. For instance, the observed characteristics, such as introducing services or novel products or the risk tanking will power, may originate in the latent construct—of EL. Estimating the structural equation model's many interactions can be done using either a variance-based structural equation model or a covariance-based structural equation model; in short, the first is called CB-SEM (Hair et al., 2010; Latan & Noonan, 2017). To explain the correlation and variability of its manifest indicators, CB-SEM takes constructs into account. Knowing the scores of these shared characteristics is not essential to estimate model parameters.

CB-SEM uses a weighted mixture of manifest indicators for a particular concept as a proxy to describe constructs (Cheah et al., 2018; Hair et al., 2010; Latan & Noonan, 2017). PLS-SEM has been used with a modest sample size of 410 observations. Consistent PLS-SEM estimation is a recent attempt to combine these two SEM methods to preserve the flexibility of PLS-SEMs in dispersion principles and sophisticated model processing speeds.

Therefore, this investigation uses SMART-PLS software to conduct a consistent PLS-SEM path analysis. In addition to a sound theoretical grounding and credible prior empirical data, PLS_SEM is consistently applied (Cheah et al., 2018). Critical indicators such as Cronbach's alpha, composite reliability (CR), standardized loadings, and average variance extracted (AVE) are used to evaluate the construct validity and reliability in this fashion initially. The estimated structural model will then reveal the underlying causal and interactive links between the latent constructs (Latan & Noonan, 2017). Since the multicollinearity issue could skew the estimation model's causal effects, Smart PLS's live output also includes VIFs for all latent variables. Concern for the standard technique bias can be discounted if the VIFs derived from the whole collinearity assessment are less than 3.3 (Cheah et al., 2018). The coefficient of determination, or R2, measures the model's prediction accuracy on a scale from 0 to 1. R2 is a measure of the extent to which the explanatory factors may account for the variability of the dependent variable in a structural model analyzing the combined impact of external factors on the endogenous variables. When an exogenous component is removed from a model, the R2 value declines (Cheah et al., 2018), measured by effect size f2. Significant effects have an effect size of 0.35, medium effects are 0.15, and minor impacts are 0.02. In a structural model, an explanatory or mediating variable's effect size (f2) measures its impact on the R2 of the dependent variable.

Data analysis and result

Respondent (artisans) profile

The online survey was active for three months, and 480 people filled it out (for a response rate of 40%; see Table 1). There were 410 correct responses (not including managers or team leaders from significant firms or those whose surveys were incomplete). The poll took longer than intended, and fewer people filled it out because they were too busy dealing with the effects of the Covivirus 19 epidemic. In Table 2, we can see the overall characteristics of the sample, such as the ownership structure, staff count, geographic reach, and years in the company. Among those who participated, almost 63.2% were artisans or owners. Everyone else who answered was a team leader. More than half of the companies that participated in the study had been in operation for at least five years, which is also essential information. Therefore, most respondents were comfortable answering questions on entrepreneurship. Notably, this sample may represent the handicraft industry as a whole.

Table 1  Profile of respondents

Table 2 Validity and Construct reliability

Construct reliability and validity

Content, convergent, and divergent validity analyses were performed on the construct measuring tools to ensure their reliability and accuracy. Before sending out the survey, we evaluated a pool of possible respondents from the handicraft sector. Those individuals have tight ties to the respondents and possess extensive managerial expertise. Several revisions were made to the questionnaire based on their expert recommendations.

To ascertain whether or not a latent variable can be appropriately described by its observable variables using the PLS algorithm for path coefficient, the convergent validity test and Construct reliability are assessed using tools standardized loading values, composite reliability, Cronbach's alphas, and average variance retrieved (Hair et al., 2010). When item formalized loadings on their respective constructs are greater than 0.7, a measurement scale is considered to have strong convergent validity (Hair et al., 2014). Additionally, AVE indicators 0.516–0.699 are above the cutoff value of 0.5. As a result, the constructs' measurement scales have convergent validity, reliability, and excellent internal consistency levels as given in Table 2.

Discriminat validity

Next, we examine the problem of discriminant validity using the Fornell-Larcker criterion—the correlations between any two variables (Latemnt construct). Generally, discriminant validity must be greater than AVE (Hair et al., 2010). Table 3 displays the intercorrelation among the constructs as off-diagonal elements, while the square roots of AVE are supplied on the diagonal and in bold. The square roots of the AVEs on the diagonal appear significantly more significant than the correlations between the various constructs. If this is true, then the model has discriminant validity.

Table 3  Fornell–Larcker criterion

Heterotrait-Monotrait ratio (HTMT) is another test for discriminant validity. The goal of the test is to disclose the average item-to-item correlation between different measures of the same construct. The DV(discriminant validity) is adequate if no Heterotrait-Monotrait ratio result is higher than 0.85. Table 4 shows no significant link between cross-loading and any other variable. As a result, the validity of the discriminant function is restored.

Table 4  Heterotrait–Monotrait ratio (HTMT)

As a systematic approach to evaluating common method bias and collinearity, the complete test of collinearity introduced by (Kock & Lynn, 2012) was recommended by Latan and Noonan (2017). All inner VIFs among the variable (latent constructs) fall within the acceptable range of 1.109–2.532; hence, the whole collinearity test passed with flying colors. Therefore, the research model is free from conventional technique bias.

Model fit test

From Table 5 it has been observed that for checking the model of fit test it has been observed that the SRMR value is under the standard norm (Hair et al., 2012) and this is better for Chi-square and the normalized factor indicator is also under 0.85. So it has been seen that there is a model fit for all variables.

Table 5 Output of model fit test

SEM (structural equation model)

The reliability and construct validity were established, and then the structural model (Fig. 2) was estimated to test the hypothesized relationships between entrepreneurship, EL, innovation, teamwork, agility, competitive advantage, and firm performance. The model's predictability level is measured by its R2 value for the latent constructs on which it depends. Hair et al., 2010) suggest setting R2 at 10% at the very least or entrepreneurial orientation. Figure 2 displays the R2 values, which show that EL accounts for as much as 65.2% of the variability in the construct. The model's components accounted for 64.2% of the variation in business performance. At these levels of precision, predictability is maximized.

Table 6 shows that nine of the 11 structural model hypotheses were supported (at p-value 0.1) by the standardized t-value, path coefficients, and p-value. Table 5 shows that organizational factors such as entrepreneurial orientation, Talent management, DT, and business performance (H1, H5, H7, and H9 having values H1 = 0.712, H5 = 0.610, H7 = 0.610, H9 = 0.249) are significantly positively predicted by EL. These business factors social media, DT, and INO are helping businesses succeed (H6, H8, and H9). In addition, H2 (EO → BP: = 0.285, p = 0.017) and H8 (DT → BP: = 0.728, p = 0.000) are both statistically significant. H3 (EL → TM beta value o.689 and p value = 000, H7 (INO → BP bet avalue = 618 and p value = 0.000 is accepted, social media is also accepted as beta value = 0.731 H6 (SM → BP). The data shows that an entrepreneurial mindset does not affect business success and that technical innovation capabilities do not affect an entrepreneurial mindset.

Table 6  PLS-SEM path coefficients

Mediating impact of TM and EO

The degree to which predictive factors may explain independent variables is only indicated by R2. A mediating variable's contribution to R2 of the Bsusines performance (DV) can be measured with the help of the effect size f2. Table 5 shows that the effect size of EL is large on entrepreneurial orientation (f2 > 0.35), but it is small on competitive advantage (f2 0.15). This is consistent with the advice (Cheah et al., 2018). Note that dynamic capabilities have a medium-sized effect on business performance (f2 = 0.186, or greater than 0.15 but less than 0.35). It is followed by factors with a small e handicraft business and performance, such as strategic resilence and talent management (f2 = 0.040 and f2 = 0.135, respectively).

The significance of mediating effects can be analyzed using the test developed by Sobel (1982), as Hair et al. (2014) (Stice, 2001) recommended. To determine whether or not a mediator is at play, this Sobel test evaluates the direct and indirect effects of the IV on the DV. There are five possible interpretations of the test result: There are four types of mediation: (1) direct-only or no mediation at all (in which indirect effect is not significant and direct is significant); (2) Neither indirect nor direct are significant, also called (no mediation and no effect); (3) When indirect and direct both are significant and in the same direction, we called it complementary mediation; (4) when indirect and direct bot turn in opposite direction then we called it competitive mediation. Table 7 shows that while EL directly impacts craft firms' performance, its bottom line is statistically insignificant. Talent management has an indirect impact on EL. Similarly EO(beta coefficient = 285 and p-value = 0.020 has also an indirect impact on BP through EL. Since the direct effect of EL on business performance is zero, the indirect-effect path coefficients of 0.071, 0.315, and 0.064, (H2a, H4a) for the mediator talent management are positive.

Table 7  EO and TM (Talent management) and Mediating effects construct

Both of the hypothesized pairings define common sense. Nonetheless, a robust direct connection between EL and talent management (0.122) suggests the two are inextricably linked. but when these factors are supported by TM and EO as mediators then EL strengthens the value of BP. This indicates that the greater a leader's attention to EL, the greater the adoption of talent management practices at the company level. Additionally, talent management and strategic resilience have a significant and statistically-significant impact on corporate success (p 0.001). These results show that the two organizations' competencies are responsible for their businesses' improved development and profitability.

Figure 3 shows the connection between talent management, EL, and business performance, (H4a), and EO have also mediating impact between EL and BP (H2a) mediated by talent management. The aforementioned secondary consequences outweigh the primary ones. We followed Kafetzopoulos and Gotzamani's (2019) characterization of mediation effects in our in-depth study of mediation. After controlling for all other potential confounding factors, complete mediation occurs when EL, the independent variable in this example, does not affect the dependent variables of strategic resilience and business performance. However, when the mediating variable is included, the predicted indirect impacts are higher, and the examined direct paths are no longer statistically significant (0.064 and 0.061, respectively, at p 0.1). Sobel testing was used to explore the potential mediating role of talent management (Jha & Venkatesh, 2023; Kumar & Bhatia, 2021; Song and Gu (2020)). Tables 5 and 5 show that both H4 and H9a are supported by the data, proving that strategic resilence works as a moderator.

Fig. 3

Mediating impact of EO and TM between BP and EL through the Bootstraping method. Sources: figure designed by authors

Moderating impact of SR on BP

For a better analysis of the moderating effect of Strategic resilience (SR), we adopted product indicator strategies (PIS). This is applied in SEM to predict the interaction of latent variables. There is strong positive correlations were shown between TM and BP which are moderated by (SR) (beta coefficient = 0.020 and p = 0.023). This is according to the normal range and strongly to TM which is essential for better BP in the craft industry.

This has been shown in Fig. 4 in which the relationship with TM and BP is strengthened by SR and reducing conflict. Workers can get opportunities if they have innovative ideas so hypothesis H9 enriches and supports the EL and enhances the BP(Fig. 4).

Fig. 4

Simple slopegraph with moderating variable. Sources: software output

Even when we checked the direct impact of SR on BP it was negative and insignificant and when we checked it as a moderator with EL and on BPP then it was observed that there is moderation of meditation of BP. For more elaboration of our knowledge to explain the processing impact of the moderator see the moderator impact by taking consideration of various levels as lower (-1SD from the mean and lower + SD from the mean. when their new model was separately inserted into a path model to check how they behaved. for this a simple slop was produced through the PLS software (Fig. 4) to show the moderator impact for low and high levels of SR as factors (Collier, 2020). From Table 8 lower value is given (beta coefficient = 0.137 bootstrapping value 0.078 lower) and the upper is 0.085 at a 95% confidential level. It shows no effect but at a high level beta value is 0.131 maximum and lower bootstrapping value is 0.061 and the higher one is 0.189 which strongly supports BP through TM. Another from the simple plot is also clear to strongly moderate BP. For effect size, Q2 and F2 please refer to Table 8.

Table 8 Effect size, Q², and R2 value

Effect size, r2, q2

According to Fassott et al. (2016), the R2 value is employed to detect the dependent variable and its variation which can be explored by a more exogenous construct as given in Table 8. The R2 value meets the requirements of the study. R2 values of more than 0.10 were considered satisfactory (Fassott et al., 2016). However, (Chin et al., 2003) categorized R2 values into three groups: high (0.58), low (0.21), and moderate (0.35), and. In this study R2 values for BP are observed by 0.15 for BP and 0.349 for EL, showing a 15.4% and 34.9% variation in the dependent variable, respectively. This study conforms to the R2 statement value proposed by Falk and Miller (1992). The model's predictive relevance is calculated by the value of Q² (hair et al., 2014). Q² should be more than zero and in this study it is, therefore making it meaningful. Q² value measures three classes, if it is greater than 0.15, then it is medium impact; if greater than 0.000, it is small impact. But if the Q² value is more significant than 0.35, then enormous impact (Hair et al., 2012; Gaiser, 1990).

At the low level of SR, the relationship between TM and BP was not significant. But when it observed a high level ofSR created a similar result with the mean value of  BP. So we again observed high and low both with sample slope plots which seem to influence positively between TM and BP positively. Even at a high level, it seems flatter and we found support for positive moderation on slope which is given in Fig. 4.

Discussions

Research by (Ferreira et al., 2018; Shirokova et al., 2016; Engelen et al., 2015), among others, has shown that EL can considerably improve organizational TM, entrepreneurial orientation, and business performance. These associations also added mediating factors (Kantur, 2016; Shirokova et al., 2016). In our study, we designed a conceptual model of dynamic capabilities (EL, entrepreneurial orientation, SM, DT INO), strategic resilience, business performance, and talent management and EO as mediating variables in the handicraft industry.

First, the study's findings provide credence to the idea that exposure to EL can foster an entrepreneurial mindset among followers. An organization's level of EL can be seen in its entrepreneurial orientation and business performance, all of which are encouraged by a leader (Engelen et al., 2015; Muchiri & Mcmurray, 2015). regarding H1 from the data, it has been clear that there is a direct relationship between EL and EO and EO is also supporting BPE(H2). even their mean value becomes much stronger when mediating the impact of EO between EL and BP. As EL directly not much stronger with BP even significant and supporting (H5) previous studies have shown that EO has also a mediating impact between EL and BP. and this result also proved that H2a is a mediating relation with EL and BP (Singla et al., 2023; Tripathi et al., 2023). Similarly, when we observed that there is nay direct relationship between SM on BP (H6) empirically it proved and validated that social media is supporting to strengthen BP. Digital technology (H8) is supporting BP as when innovation work will be enhanced then digital technology is also playing a big role in H7 The impact of INO is positive with BP (Yang et al., 2009).

According to (Singla et al. (2023), Ferreira et al. (2018), and Engelen et al., (2015), among others, have shown that EL can considerably improve organizational EO and Business performance. These associations also added mediating factors of EO and TM on BP (Kantur, 2016; Shirokova et al., 2016). In the current study, we designed a conceptual model of several dynamic capabilities (INO, DT, SM, EL,) and strategic resources as resource-based views (EO, TM) that strongly support handicraft industry production marketing and promotion. It has been observed that SM is much more effective for BP even in this digital era as previous studies also support (Dubey et al., ; Yadav & Tripathi, 2024). It has been observed that social media can boost business performance as this medium of ad and marketing craft products. Similarly, digital media ICT and other mobile banking apps also support functions in either craft or manufacturing industry. so the result also showed that there is a positive support of DT.

First, the study's findings provide credence to the idea that exposure to INO, and entrepreneurial leadership can foster an entrepreneurial mindset among artisans and craft owners. An organization's level of entrepreneurial orientation can be seen in its capabilities, all of which are encouraged by a leader (Engelen et al., 2015). Despite DT's inability to foretell an entrepreneur's mindset, the findings confirm DT' is an indirect favorable influence on the productivity of the handicraft industry. Much of the prior work (Yadav et al., 2023b; Ferreira et al., 2018; Muchiri et al., 2012), among others, views EO, and DT as a contingent rather than a primary leading role in Business performance.

This study agrees with previous research (Huang et al., 2014; Kantur, 2016) to support the mediation function of talent management when analyzing the link between EL and business performance. In particular, EL from the owner motivates workers to pool their resources to generate original ideas (Cai, et al., 2018; Gupta et al., 2004) and then use those ideas to boost business performance (Ahlin et al., 2014). These results align with recent research (Cai et al., 2018; Shirokova et al., 2016) and imply that dynamic competencies can positively affect EL and business performance. So talent management also directly and as a mediator strongly supports the business performance. similarly, entrepreneur orientation acts as a mediator between EL and BP. Anhce innovative ness, risk-taking which enhance the business performance. Previous studies also support this hypothesis (Gupta et al., 2004).

This research supports prior findings (Prakash, 2014; Yang et al., 2009; Bartlett and Birkinshaw, 2003) that mediators and independent variables affect a firm's performance. Additionally, we investigate whether or not there is a moderating impact of SR on BP through TM. The findings confirmed or refuted the hypothesis that SR effectively has a moderation of mediating impact on business performance through TM. Previous research (Thunnissen and Gallardo, 2017; Prakash, 2014; Bingham et al., 2007) establishing a positive moderating connection of SR on BP through TM and the mediating effect of EO and TM between EL and BP were bolstered by our findings (Singla et al., 2023; Luna & Tang, 2015). This link, however, seemed feeble, especially when compared to the study's other associations. As a result, even though this variable has some mediating effect on the impact of EL on firm performance, it is not particularly effective.

Both TM with BP moderated by SR(H9) and the impact of INO(H7), DT(H8) SM(H6), and EL(H5 on business performance benefit from a focus on business performance. This aligns with findings from recent human resource studies (Ferreira et al., 2018; Prakash, 2014) that highlight the significance of talent management to an organization's effectiveness and efficiency and the role of talent management and artisanal motivation..these artisans improve the business performance and enhance the capacity to transform them as entrepreneurs. High-tech workers can boost the handmade firms' Performance (H8) by developing, testing, and adopting strategic resilience practices. Our results are consistent with and build upon those of prior studies in the field of business (see, for example, (Brozovic, 2018; Li et al., 2010). According to these studies, innovations in quality, ambidexterity (Suarez et al., 2016; Das and Elango, 1995), and so on account for most of the effects on a company's success. This research adds a new avenue of inquiry for management researchers by focusing on a hitherto underexplored mechanism of corporate capability: strategic resilience (Sahi et al., 2020).

Conclusion

The initial focus of this study is on the significant influence that EL may have on the business culture of the handicraft sector through their emphasis on entrepreneurship. Recognizing EL's role in improving craft businesses' productivity is essential by bolstering vital organizational features such as digital innovativeness. In the meantime, talent management plays a vital role in connecting EL efforts to the actual performance of businesses. Important insights can be extrapolated from this study's findings.

This research begins by presenting a theoretical model wherein elements such as some dynamic capabilities such, as EO, INO(H7), DT(H8) SM(H6), and EL(H5) on business performance in the handicraft industry as there is a need for this advanced technology to boost handicraft sector as they are competing with machine made. so social media and digital technology may act as boosters for marketing, and promotion, and be reachable in those are geographical;l areas where there no possibility. There is also a need for talent management and leadership which give the best idea and lead to form for give best business performance. INO is also needed in the craft industry. As several machines made industry has affected economies and government is setting pout rule to make the sustainable product. so there is a need for craft products. Strategic Resilience is the best suite for enhancing BP through TM. entrepreneurial mindset, strategic resilience, digital innovative capacity, and business performance all coexist. Second, the study's results revealed a correlation between handicraft firms' success and talent management, implying an indirect impact on the latter. Finally, this research gives a deep dive into how this influence manifests itself in the daily operations of Handicraft sector firms. We used a mediator TM(H4a) to understand better the connections between business performance, strategic resilience, entrepreneurial orientation, and EL and business performance.

Handicraft sector firms and startups in the craft industry can draw several valuable conclusions from these results. Having artisans as entrepreneurs with an entrepreneurial spirit is crucial for firm success. Improving the metric, however, is not always easy. The handicraft sector can instead focus on building a foundation of talent management rather than developing outstanding EL practices and implementing an entrepreneurial perspective. This mediator is critical in amplifying the performance-enhancing impact of EL and mindset.

However, one should also be wary of the caveats of this study. This research focuses on only the handmade industry in India. Indian economy, and the emerging economy more broadly, has some unique characteristics that make objective data collection difficult.

Theoretical implications

By empirically exploring the breadth of dimensions of dynamic capability theory (EL, DT, INO SM), and the most important dimension of Resource-based view(EO), the contribution of this study to social media literature shows the connection between entrepreneurial leadership and Busines performance and DT with entrepreneurial leadership and BP. These constructs support these theories positively and have significance in the current time in the craft industry.

The data also points in a constructive direction, connecting talent management with improved strategic resilience and bottom-line results for businesses. Consequently, a novel strategy has been proposed for achieving strategic resilience and enhanced performance. Finally, this study examined the potential mediating function of talent management between EL, strategic resilience, and business performance. Researchers have recognized the need to delve more into these intriguing connections as this is the first study on talent management in this setting. Finally, this paper's empirical study adds to the development of the theoretical understanding of performance capabilities by demonstrating that strategic resilience improves the performance of craft businesses this will also contribute new upcoming digital capability view(DCV) as now the relevance of the earlier concept needs to expand.

Managerial implications

The managerial ramifications of our research are crystal evident. First, it recommends that managers put more resources towards talent management, which means that efforts to attract, cultivate, and retain top personnel are valuable to any company interested in improving its strategic resilience and bottom line. Individual capability(Innovation, DT, and entrepreneurial leadership efforts can be directed toward fostering a positive work environment, which will help with talent management. Second, managers can use exceptional worker capabilities to implement best operational practices and targeted organizational programs (such as those designed to boost output, efficiency, and delivery while decreasing overhead costs). In addition, the business benefits from more income, reduced waste, and enhanced performance thanks to these initiatives.

To enhance, talent management should be viewed as a top-level management priority and connected with the company's overarching strategy and other strategic business operations. Firm EL efforts can be directed toward fostering a positive work environment, which will help with talent management. Second, managers can use exceptional workers to implement best operational practices and targeted organizational programs (such as those designed to boost output, efficiency, and delivery while decreasing overhead costs). In addition, the business benefits from more income, reduced waste, and enhanced performance thanks to these initiatives. Third, the study's results imply to managers that talent management is highly tied to adopting strategic resilience rather than cost considerations alone. Thus, managers' intrinsic interest in personnel management can help establish a firmer foundation for strategic resilience and success. Because organizations invest heavily in achieving strategic resilience, not all managers and firms can deliver value from these investments. These practical consequences are particularly relevant (Benitez-Amad et al., 2015). In particular, managers make it possible for organizations to build strategic resilience by encouraging efficient management of human resources. This finding aligns with Beer and coworkers' (Beer and Eisenstat, 2000) theory that managers can either strengthen or weaken an organization's resilience.

Limitations and scope for future research and proposing (Digital Capability View)

Even the value of our research is helpful for the handicraft sector or micro industry in this filed, as we have taken limited variables. Some other variables may support this study's theory as we have looked at a formal approach to EL, social media, Tlanet management, and Strategic resilience. Even there are many opportunities to focus on some other impact direct and indirect factors that can affect the handicraft sector. As the handicraft industry is facing huge challenges and there is a need for revival of the handicraft industry, in the digital era and time of AI it may be expanded some work use of bug data and blockchain, AI, blk chain supply chain enhancement  for handicraft sector export and impact factor with support of digital social media and drone facility can support craft industry. We have taken only a small sample for select craft products and there has not been to cover any other factors another reason for the limitations is it has focused on only the Indian handicraft sector there is variation at the work level so are specific study should be focused on business performance in the handicraft sector. As a result, many more factors like entrepreneurial EL, entrepreneurial orientation, social media, attitude ambidexterity, capacity dynamics, and creativity may affect talent management. This finding is based on the Indian handicraft sector, and only selected industries and artisans have been engaged in this study.so there is a need for vast evaluation in other fields. There is a need for a new theoretical approach as earlier (DCT has even been used but as ned of AI, Social media, ML, IoT, block chain, Digital technology, algorithms, and computational utility then this theory is not much relevant. So there need to propose to strong new approach and concept which is generally called Digital capability View (DCV) or model or theory initially it was also called digital dynamic capability theory(DDCT) so exploring this view will open a new door for a researcher working in the area of use of AI, SM, AOT, Blockchain, big data analytic, data science, singularity, algorithm-based technology supercomputing, and advanced digital technology. This theory will be an extension of dynamic capability theory as DCT was proposed 3 decades and now the whole world is changing and shaping AI mode and digital mode. Every industry whether handicrafts, services, manufacturing, marketing, export–import, or banking sector logistics heavy infrastructure communication technology. This theory will support researchers in making and utilizing new dimensions for industry-based and big dynamic capability Digital marketing is taking shape so DCV will work in place of DCT and RBV as now time and work system have been changed. Finally, more empirical study is required to educate academics and businesses on the importance of talent management and the best ways to address the challenges it presents in the twenty-first century.