Proper

Abstract

Small and Medium-sized Enterprises (SMEs) that are in difficult situations need a CEO leadership that allows employees to stay in the organization and engage in organizational performance creation. Until now, transformative leadership, servant leadership, and authentic leadership have been studied as CEO leadership. However, in the SMEs that do not have a complete system, the proponents of this study thought that the CEO’s rationalistic leadership is more appropriate than other leadership. Compassionate rationalism leadership is based on rationalism, but it composes eight factors as a leadership applying compassion according to the situation.
The purpose of this study is to empirically investigate the effects of SMEs CEO's compassionate rationalism leadership on of organization innovation activity and management performance through of member positive psychological capital and time structuring. The results of this study show that the compassionate rationalism leadership of SMEs plays a very important role in member's positive psychological capital, time structuring, organizational innovation activity and business performance. In particular, a CEO's compassionate rationalism leadership has a direct positive effect on the positive psychological capital of the members. And the positive psychological capital indirectly effects the negative (-) effect on negative time structuring, but positive effect (+) on the positive time structuring. Therefore, CEOs of SMEs should implement compassionate rationalism leadership and activate the positive time structuring of their members in order to make them the healthy organizations that can achieve excellent management performance.