scholarly journals The Impact of Leadership Styles on the Entrepreneurial Orientation of Small and Medium Enterprises in South Africa

2017 ◽  
Vol 9 (2) ◽  
pp. 104
Author(s):  
Obey Dzomonda ◽  
Olawale Fatoki ◽  
Olabanji Oni

The critical role Small and Medium Enterprises play in the economic prosperity of nations cannot be understated. SMEs actively contribute towards economic growth and development through their active role as innovators and agents for change. The authors of this paper believe that leadership styles exercised by SME owners have a bearing on the innovative ability of SMEs. Hence, this paper aimed at investigating the impact of leadership styles on the entrepreneurial orientation of SMEs in Polokwane Municipality. A quantitative research method was used and 103 SMEs participated in the survey. The random sampling technique was used. Self-administered questionnaires were utilised to collect data in a survey. Data analysis included descriptive statistics, Pearson’s correlation and regression analysis. Reliability of the data collection instruments was measured using the Cronbach’s alpha. The results indicated that the SMEs display average levels of entrepreneurial orientation. In addition, the results showed that SMEs display average levels of leadership styles inclined towards transformational leadership style. Furthermore, the results showed a significant positive relationship between the independent variables: leadership styles with the dependent variable (EO) of SMEs. SMEs were recommended to provide flexible leadership styles that will make EO to flourish in their businesses. Furthermore, the policy makers and relevant authorities were recommended to devise and implement a consortium of strategies and policies that can increase the level of entrepreneurial orientation among SMEs in South Africa.

2017 ◽  
Vol 9 (2(J)) ◽  
pp. 104-113
Author(s):  
Obey Dzomonda ◽  
Olawale Fatoki ◽  
Olabanji Oni

The critical role Small and Medium Enterprises play in the economic prosperity of nations cannot be understated. SMEs actively contribute towards economic growth and development through their active role as innovators and agents for change. The authors of this paper believe that leadership styles exercised by SME owners have a bearing on the innovative ability of SMEs. Hence, this paper aimed at investigating the impact of leadership styles on the entrepreneurial orientation of SMEs in Polokwane Municipality. A quantitative research method was used and 103 SMEs participated in the survey. The random sampling technique was used. Self-administered questionnaires were utilised to collect data in a survey. Data analysis included descriptive statistics, Pearson’s correlation and regression analysis. Reliability of the data collection instruments was measured using the Cronbach’s alpha. The results indicated that the SMEs display average levels of entrepreneurial orientation. In addition, the results showed that SMEs display average levels of leadership styles inclined towards transformational leadership style. Furthermore, the results showed a significant positive relationship between the independent variables: leadership styles with the dependent variable (EO) of SMEs. SMEs were recommended to provide flexible leadership styles that will make EO to flourish in their businesses. Furthermore, the policy makers and relevant authorities were recommended to devise and implement a consortium of strategies and policies that can increase the level of entrepreneurial orientation among SMEs in South Africa.


2021 ◽  
Vol 9 (3) ◽  
pp. 83
Author(s):  
Hazlina Hassan ◽  
Amrizah Kamaluddin ◽  
Shukriah Saad ◽  
Nurhayati Samad

Small and medium enterprises (SMEs) face various challenges in sustaining their operations in the global business competition. In line with the resource-based view (RBV), SMEs need to utilize their available assets, including the right leadership style and innovative initiatives, to create a competitive pursuit of sustainability performance. An effective leadership style should be adaptable and flexible, manifesting in different scenarios of varying leadership behaviors. Meanwhile, innovation capital is a valuable asset that may help businesses create value in today's economy and encourage employees to be more creative. However, there has been little empirical research on the impact of leadership styles and innovative capital on sustainability performance from the emerging economies perspective. Hence, this study aimed to test the relationship between innovation capital, leadership styles, and sustainability performance of SMEs. Data were collected from 111 SMEs in Malaysia and analyzed using IBM SPSS. The results revealed that leadership styles and innovation capital have significant positive relationships with sustainability performance. This study contributes to the literature on the sustainability performance of SMEs and helps leaders strategize the appropriate leadership approaches and innovation capital to achieve sustainable performance.


2021 ◽  
Vol 19 (3) ◽  
pp. 478-487
Author(s):  
Amel Farhan Swadi ◽  
Ahmad Abed al-hayy Al-dalaien

Organizational entrepreneurial characteristics (OEC) have received less attention compared with the individual entrepreneurial ones. In addition, few studies examined this issue in the context of small and medium enterprises (SMEs) in developing countries. The purpose of this study is to examine the impact of OEC on the entrepreneurial orientation (EO) of an organizational member. OEC are operationalized to include top management support (TMS), organizational culture (OC), and transformational leadership (TL). Two moderators are proposed in this study: the CEO’s education and company`s size. The data were collected via purposive sampling using a questionnaire; a survey included 206 SMEs in Iraq. The data were analyzed using AMOS. The findings indicate that the impact of EOC (B = 0.14) on OE is positive. Its dimensions TL (B = 0.14) and TMS (0.50) also impacted positively the OE. CEO’s education and company size moderated positively the effect of OEC on OE. Decision makers are advised to pay more attention to leadership style and adopt open culture as well as free expression and tolerance among SMEs in Iraq.


2019 ◽  
Vol 27 (2) ◽  
pp. 6-8

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on gender diversity within Latin-American small and medium enterprises (SMEs) and the impact of top women executives on the leadership styles that manifest in these companies. Women were found to adopt a warm, inspirational, relationship-based style of transformational leadership, in contrast to the more competitive and emotionless transactional leadership style traditionally adopted by male executives in such companies. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


Author(s):  
S.E. Donny Sita ◽  
N.A. Mohd. Nor

Earlier notions of leadership opined that leadership can be found in one's genes that determine how an individual behaves and reacts to his/her surrounding (Bass, 1985). That is, a leader can still be detected in a group of people although nobody may be appointed to lead at the outset. In the past, an individual became a leader through inheritance of a rank or the throne in a country or in an institution. However, the temperament or characteristic of an individual determine whether one can lead or not. A leader acts as a conflict contributor, a resolver or peacemaker, and a punisher (King et al., 2009). Besides being dominant over the rest of the group members, a leader needs to influence the followers too with his/her leadership style. The leadership style of a leader depends on the attitude of him/her to influencing followers in the organisation. The modern era indicates that an uncertainty or complex situations are not uncommon. In a context of a small and medium enterprises (SMEs), turbulences arising in an enterprise require an effective leader to sustain a strong sense of opportunity for all followers. Such participation allows followers to share opinions, make better decisions and control the resources. In fact, followers and the leader cannot be separated. Likewise, leadership runs in tandem with development. Development occurs as leadership pushes it (Banyai, 2009). Hence, without proper leadership to lead the followers, it would be rather difficult to reach the mutual goals of the enterprise (Poskas & Messer, 2015). Also, a good leadership through guidance and effective communication enables followers to improve themselves. Hence, to conduct a relevant systematic review, the current paper is guided by the following main research question: how are leadership styles practiced among leaders in the context of small and medium enterprises? The focus of this paper is on the leaders of small and medium enterprises where followers are working together towards achieving the mutual goals of the enterprise. Keywords: leader; leadership style; PRISMA; small and medium enterprises; systematic literature review


2017 ◽  
Vol 9 (3(J)) ◽  
pp. 232-240
Author(s):  
Evelyn Motsepe ◽  
Olawale Fatoki

Small and medium enterprises (SMEs) are an important vehicle in income re-distribution, poverty alleviation, employment creation and contribute to the gross domestic product of South Africa. However, SMEs in South Africa suffer from a weak level of performance and a high failure rate. The main objective of this study was to investigate the impact of learning orientation on the performance of SMEs. A quantitative approach was used, while a self-administered questionnaire was also employed during data collection process. A three- section questionnaire covering demographic information, learning orientation variables and performance variables was prepared and distributed randomly to a selected sample of 390 SME owners in Msukaligwa Local Municipality in Mpumalanga Province of South Africa. A total of 181 questionnaires were returned. Descriptive statistics, factor analysis, correlation and regression analysis were used for data analysis. The Cronbach’s alpha was used to measure reliability. The results of the study revealed a significant positive relationship between learning orientation and the performance of SMEs. Recommendations to improve the learning orientation of SMEs are suggested.


2021 ◽  
Vol 9 (1) ◽  
pp. 54
Author(s):  
Enny Hindarwati ◽  
Agus Rahayu ◽  
Lili Adi Wibowo

The entrepreneurial orientation that affects the performance of Micro, Small and Medium Enterprises (MSMEs) in Jember is a research objective. The study population was 172 micro, small and medium enterprises in Jember. This research uses 100 respondents with simple random sampling technique. The research respondents were the owners of the MSME as informants. Collecting data by distributing questionnaires to 100 respondents. The collected data were analyzed using Structural Equation Modeling (SEM) Partial Least Square (PLS) software. The results showed that the autonomous dimension had a significant effect on the performance of MSMEs, while the other dimensions of entrepreneurial orientation: innovation, proactivity and risk had no significant effect.


2019 ◽  
Author(s):  
◽  
Mchunu Nelisiwe Mary-Anne

Small and medium enterprises (SMEs) are key contributors to the South African economy. In order to survive the current volatile economy, SME leaders need to implement leadership styles that are good for the survival of businesses in the manufacturing sector. The manufacturing sector in South Africa is growing at a slower pace in comparison to other sectors due to high labour and production costs. However, implementing a management system, such as, suitable leadership style creates the competitive advantage necessary for survival. The aim of the study was to identify the leadership styles used by SMEs in the manufacturing sector within Msunduzi Municipality and to determine the effectiveness of leadership styles on enterprise success and survival. Managers and other people in authority in organisations adopt certain leadership styles in order to communicate with their subordinates with regard to the execution of tasks. Adopting unsuitable leadership styles impacts negatively on business performance. The study was conducted at SMEs in the manufacturing sector within the Msunduzi Municipality in Pietermaritzburg, Kwa-Zulu Natal. This project emphasised the context of leaders of SMEs and the amount of influence or non-influence that leadership has on the survival of the business. A quantitative research design was adopted for the study; a structured closed-ended questionnaire based on the Multifactor Leadership Questionnaire (MLQ) developed by Avolio, and Bass (2004) was used to collect data from the sample respondents. The target population comprised 686 SMEs. A random sampling technique was used and a sample size of 200 was drawn. A response rate of 68% was successfully achieved. The researcher used personal and email methods of data collection. The data collected from the sample respondents were captured on Microsoft Excel and analysed using the Statistical Package for Social Sciences (SPSS) version 25.0. Several hypotheses were formulated and tested using the Pearson’s Chi-Square. Results revealed that applying a transformational leadership style in managing a business tends to increase the length of business survival. The opposite is true regarding the laissez-faire leadership style. The study further revealed that there is no evidence to suggest that a transactional leadership style has any effect on the survival length of SMEs in the manufacturing sector. Tentative recommendations suggest that leadership in SMEs should adopt a leadership style that is best for the survival of the business.


Sign in / Sign up

Export Citation Format

Share Document