scholarly journals The effect of leadership style and innovation capital on SMEs sustainability performance from a managerial perspective

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.

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.


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.


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


Author(s):  
Sharon Esther Anak Donny Sita ◽  
Nor Ashikin Mohd Nor

Objective - The purpose of this paper is to conduct a systematic review of the leadership style practiced by leaders in small and medium-sized enterprises. Methodology/Technique - Following the protocol guidance known as the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) flowchart, a total of six articles were reviewed and analysed after meeting inclusion criteria and being deemed relevant to the goals of this paper. Findings - The results of the study suggested that the leadership styles of leaders in the context of small and medium enterprises are based on the following elements: 1) the background of an organization; 2) the characteristics of the leader; 3) the relationship between leader and followers; and 4) the position of the followers. Novelty - This paper contributes to the knowledge on leadership style in general, specifically in the context of small and medium-sized enterprises. Type of Paper - Review. Keywords: Leader; leadership style; PRISMA; small and medium-sized enterprises; systematic literature review. JEL Classification: L20, L29.


2021 ◽  
Vol 6 (1) ◽  
pp. 391-407
Author(s):  
Dr. Zafar Iqbal ◽  
Dr. Amna Niazi ◽  
Dr. Hamid Hassan

We analyze four different leadership styles from multiple dimensions to find out the suitability of these styles for the leaders working in Pakistani small and medium enterprises (SMEs). Theoretically, it is an additional perspective in the debate on effectiveness of different leadership styles in different environments for different purposes. It starts with analyzing contemporary theories of leadership and their derivative styles. Next, it discusses the major aspects of organizational environment coming from the broader culture of a country. Subsequently, it tries to provide a more balanced view in the debate on cause and effect of leadership styles and their effectiveness in specific organizational culture. In the empirical analyses the study analyzes the productivity, acceptance and sustainable success of different leadership styles in the organizations working in Pakistan. The data is collected both from business leaders and their relevant followers. The findings of study explains that outputs when measured in terms quantity shows better results for autocratic leadership style while democratic leadership style give better results when measured in terms of quality. Similarly, willingness of followers to continue and their inspirations beyond the formal organizational structure are higher for charismatic and participative leadership styles.


2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Nikmatus Sholicha ◽  
Renny Oktafia

Micro, Small and Medium Enterprises (MSME) in Indonesia have an increasing number from year to year. Starting from 2012 to 2017 the development of MSME reached 13.98 percent. percentage in 2017, MSME have reached the number of 62,922,617 units in various regions in Indonesia, of course the number is much larger than the large businesses that only amounted to 5,460 units. Largest amount was donated by micro businesses as much as 62 million (98.7 percent), with small and medium enterprises amounting to 815 thousand units or only 1.3 percent. Sumber Kembar village is also a contributor to the unit. but still have difficulty in implementing the right marketing strategy. Research aims to know the implementation of marketing strategies in an effort to increase the sales turnover of MSME Sumber Kembar village and as an education on the impact caused. type of research method used qualitatively with case study approach. MSME in the village use offline steps in a product marketing that makes their turnover small and the business difficult to develop. if the MSME in Sumber Kembar village do not follow the development of technology, then they will be difficult to compete with other competitors who have advanced.


Author(s):  
Moaaz Labib Sulaiman Sabah

The purpose of this study was to investigate the impact of leadership styles:  Exploitive Authoritative, Benevolent Authoritative, Consultative and Participative, according to Likert Leadership styles on job performance: work requirements knowledge, the quality of work, the amount of work done and perseverance and trust, in the directorates of The Ministry of Youth in Jordan.  A questionnaire is designed to collect the required data, SPSS is used to analyze it, to achieve the objectives of the study, which focuses on identifying the methods and leadership styles used by the Ministry of Youth directors and their impact on the functionality of the staff of its directorates. 100 questionnaires had been distributed on the employees of the Ministry center, 89 of them were valid for analyzing.  The study shows that the Benevolent Authoritative leadership style comes first, then the Exploitive Authoritative, followed by the Consultative leadership style, and then the Participative leadership style ranks last. The study also shows that the prevalent management style in the Ministry of Youth in Jordan is a Benevolent Authoritative leadership style. Depending on the answers of the sample, the study shows a high level of functionality of the staff in the Ministry of Youth in Jordan. The study also shows statistically significant relationship at the level of significance (α ≤0.05) between the independent variable, that is each of the leadership patterns on the dependent variable which is the performance in the Ministry of Youth in Jordan.  The study recommends several recommendations, including: giving employees the authority to take some of the non-critical daily decisions, improving the communication channels between the manager and his employees, through regular meetings for example. Focusing on the motivating factors and trying to take advantage of the private sector expertise and success in the field of management. Finally, the confirmation to place the right person in the right place for supervisory positions as heads of departments because of its potential impact on job performance and recommended by the study, another recommendation is to repeat the same study but from the manager’s point of view, while this study is from the employees point of view.


MBIA ◽  
2020 ◽  
Vol 19 (3) ◽  
pp. 293-308
Author(s):  
Tetty Yuliaty ◽  
Cut Sarah Shafira ◽  
Muhammad Rafi Akbar

In the Indonesian economy, Micro, Small and Medium Enterprises or MSMEs are the business group that has the largest number and is proven to be resistant to various kinds of shocks to the economic crisis. Micro, Small and Medium Enterprises (MSMEs) are encouraged to be able to develop into the global market not only on a national scale. Strategy is very important to determine the success of a company to achieve its long-term goals. By choosing the right strategy for a particular company position, it will make a company have a competitive advantage. The purpose of this research is to find out what is the most appropriate strategy that should be taken by PT. Muniru Burni Telong as a UMKM in facing Global Business competition. This research method uses SWOT analysis and IFAS, EFAS, by previously collecting data through interviews, questionnaires, observations and literature studies. The results of this study indicate that the strategy that must be carried out by PT Muniru Burni Telong is in quadrant I, which is a quadrant that supports an aggressive growth strategy which shows that this company has the power to take advantage of existing opportunities, meaning that the organization is in a strong condition so it is possible to continue to expand opening branches to the targeted countries, enlarging growth and achieving maximum progress.   Abstrak Dalam perekonomian Indonesia, Usaha Mikro Kecil Menengah atau UMKM merupakan kelompok usaha yang memiliki jumlah paling besar dan terbukti tahan terhadap berbagai macam goncangan krisis ekonomi.Usaha Mikro, Kecil dan Menengah (UMKM) didorong harus mampu berkembang sampai ke pasar gobal bukan hanya di skala nasional saja. Strategi merupakan hal yang sangat penting untuk menentukan keberhasilan perusahaan untuk mencapai tujuan jangka panjangnya. Dengan memilih strategi yang tepat pada posisi perusahaan  tertentu, akan membuat  sebuah perusahaan  memiliki keunggulan kompetitif.  Tujuan dari penelitian ini adalah untuk mengetahui strategi apa yang paling tepat yang harus diambil PT. Muniru Burni Telong sebagai UMKM dalam menghadapi persaingan Bisnis Global . Metode penelitian ini menggunakan Analisis SWOT dan IFAS, EFAS, dengan sebelumnya melakukan pengumpulan data melalui wawancara, kuesioner, observasi dan juga studi literature. Hasil penelitian ini menunjukkan bahwa strategi yang harus dilakukan oleh  PT Muniru Burni Telong adalah di kuadran I yaitu kuadran yang mendukung strategi pertumbuhan agresif yang menunjukkan  perusahaan ini memiliki kekuatan untuk memanfaatkan peluang yang ada, artinya organisasi dalam keadaan kondisi kuat sehingga sangat dimungkinkan untuk terus melakukan ekspansi membuka cabang ke negara-negara yang akan dituju, memperbesar pertumbuhan dan meraih kemajuan secara maksimal. Kata Kunci : Strategi , UMKM, Bisnis Global, SWOT


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.


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