Abstract: This study explores the impact of stress management ability on leadership performance, focusing on small and medium-sized enterprises (SMEs) in Xi'an. By integrating relevant theories from organizational behavior and leadership studies and employing a quantitative research approach, data were collected and analyzed from a diverse sample of SME leaders in Xi'an. The results indicate that leaders with stronger stress management capabilities demonstrate significantly higher leadership effectiveness. These leaders are better at maintaining emotional stability, making rational decisions, and motivating team members under pressure. In contrast, limited stress management ability is associated with emotional exhaustion, impaired decision-making, and reduced. leadership influence. This research not only deepens the theoretical understanding of the relationship between stress management and leadership but also offers practical insights. It provides actionable recommendations for improving stress management training, enhancing leadership effectiveness, and supporting the sustainable development of SMEs in Xi'an.
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