A Systematic Review on Leadership Styles in Small and Medium Enterprises

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.


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 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.


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.


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.


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.


2021 ◽  
Vol 17 (2) ◽  
pp. 607-618
Author(s):  
Roberta Sisto ◽  
Alba Marseglia ◽  
Edgardo Sica

Over the last decades, the agri-food sector has been involved in a substantial process of internationalisation. For many agri-food firms, internationalisation has become a significant element of competitiveness and an essential condition for their survival and success in spite of the possible initial difficulties in competing and organising activities in uncertain and complex environments. These challenges concern mainly agri-food small and medium enterprises (SMEs) that, due to their size, are in a more vulnerable position in relation to trade barriers compared to larger firms. Based on these premises, we investigated the structure of the agrifood exports of a small region by exploring its characteristics and evolution over time. While this research is relevant per sé, it can also explain the macroeconomic dynamics of the whole area and determine the further development of agri-food exports of a small region to non-EU countries. The analysis concentrates on exports to extra-EU countries from agri-food firms located in the province of Foggia (the south-east of Italy), a small area characterised by a large presence of SMEs and micro firms that are mainly devoted to agricultural production and food processing. To answer the research question, we employ the social network analysis, a method increasingly used for analysing international trade patterns. The use of this methodology has allowed us to conduct an in-depth analysis of firms and countries that occupy a strategic position in the network. These actors are crucial for the network’s survival since their removal could make the network more fragmented and disconnected. The analysis has been conducted in a dynamic way by exploring the characteristics of the network in 2014–2019, allowing us to assess its evolution over time. The results show that the structural properties of the analysed network have remarkably enhanced over time. However, the current network structure is not satisfactory yet since it relies, for the most part, on the connections among a few leading firms and a limited number of destination countries.


Author(s):  
Kennedy O. Ondimu ◽  
Geoffrey M. Muketha ◽  
Collins O. Ondago

While the hospitality industry in the Kenyan Coast has adopted Information and Communication Technology (ICT), application of the same is limited to internal operations and control. The industry’s e-business adoption lags behind similar industries such as tours and travel. Earlier research in e-business adoption does not suggest intervention for improvement of Small and Medium Enterprises’ (SMEs) status and lacks focus on any specific industries. The aim of this chapter is to address this gap by analyzing the Kenya Association of Hotelkeepers & Caterers’ (KAHC) e-business readiness using a three-interrelated-level framework; namely, firm level, market and industry, and institutional and regulatory levels. This chapter presents results of an ongoing project that we are currently working on, related to one of the authors’ graduate degree research program that began in 2008. In this research, we adopt a survey approach that is supplemented by case studies of other countries’ implementations from literature. Findings show that the hospitality industry at the Kenyan coast is not ready for e-business adoption and we develop a framework to help facilitate readiness. The findings imply that as a competitive strategy, establishments which have been competitors need to become collaborators; and KAHC and its membership need to adopt e-business to not only remain competitive, but also to survive. The findings are beneficial to KAHC and the Kenyan government in evaluating the status of e-business readiness as well as adoption in similar industries. Other developing countries can also adopt the framework.


2019 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Marjan Bojadjiev ◽  
Snezhana Hristova ◽  
Ivona Mileva

Since leaders can have a strong influence on the employees’ behavior, various approaches have been designed to determine the most effective style of leadership. As a field of study, the review of past research reveals that investigating leadership styles has been mainly focused on large businesses. Despite the great importance of leadership to SMEs, not many studies attempted to explore the leadership style embraced by SMEs, especially within the Macedonian context. The purpose of this study is to explore the presence of different leadership styles (autocratic, democratic and laissez-faire) in Macedonian SME. Moreover, in view of the main research objective, several demographic variables were examined, such as gender, age and working experience as to their relevance for the dominant leadership style, with a special focus on managers of small and medium sized businesses from the textile industry. Using a Leadership Style Questionnaire, the research measured different leadership styles in addition to collecting in-depth demographic data on each of the respondents. The research results have indicated that the democratic leadership is the dominant style of Macedonian textile SMEs.


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