A Systematic Review on Leadership Styles in Small and Medium-Sized Enterprises

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.

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


2018 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
SENTOT IMAM WAHJONO

Small and Medium Enterprises (SMEs) in general, grow and develop from the bottom armed with the spirit of entrepreneurship.After survived and developed into a company, usually a family company that is driven by human resources that have a family linkage to each other. As a family company that emphasizes harmony, need a central figure as a leader capable of moving the company effectively. The effectiveness of leadership in family firms in the model of situational leadership is largely determined by the adjustment of the maturity of the employees with the leadership style practiced. In the event of compliance hence could be expected would be easy to achieve corporate objectives include achieving sustained earnings growth that is sustainable. One indicator of leadership effectiveness is the satisfaction and performance improvement. Indicated satisfaction with the feeling satisfied and happy under certain circumstances surrounding the employees' daily work, including: how leaders deal with employees, provide fringe benefits, providing a space of expression, and others. This research examines the relationship between leadership effectiveness with satisfaction. Leadership model using the situational leadership theory of Hersey-Blanchard. The results turned out to support the theory that there is a positive and significant relationship between leadership effectiveness and job satisfaction.


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.


Author(s):  
Shan Shan Teh ◽  
Daisy Mui Hung Kee

Objective - The Industrial Revolution 4.0 has penetrated across the industrial world. It promotes innovation in organizing and controlling the entire value chain life cycle. The Industrial Revolution 4.0 not only brings convenience, but it also acts as a new trend toward smart technology. With this smart technology, production times are shortened, productivity is doubled, efficiency is increased, and income is also improved. The Industrial Revolution 4.0 is being emphasized among Malaysian SMEs. This is because SMEs constitute 98.5% of the business community in Malaysia. However, although the Industrial Revolution 4.0 is gaining popularity, SMEs remain relatively unaware on it. This has cast doubt on the readiness of Malaysian SMEs for the Industrial Revolution. Is the readiness of industrial revolution 4.0 reach the satisfaction level among Malaysian SMEs? Therefore, the purpose of this study is to assess the level of readiness of Malaysian SMEs for the Industrial Revolution 4.0. In addition, the study will also propose strategies to improve the readiness of SMEs in Malaysia for the Industrial Revolution 4.0. Methodology/Technique – Various papers and current information was accessed to determine the readiness of Malaysia for the Industrial Revolution 4.0 and strategies that can be employed to enable SMEs to adopt the new era of industrial revolution. Findings- From the findings it was concluded that Malaysian SMEs remain unprepared for the Industrial Revolution 4.0. Novelty - This paper proposed important strategies to assist SMEs and employees to adapt to the Industrial Revolution 4.0. Type of Paper: Review Keywords: Readiness; Strategies; Small and Medium Enterprises; Industrial Revolution 4.0; Malaysia. Reference to this paper should be made as follows: Teh, S. S; Kee D.M.H. 2019. The Readiness of Small and Medium Enterprises for the Industrial Revolution 4.0, Global J. Bus. Soc. Sci. Review 7(4): 217 – 223. https://doi.org/10.35609/gjbssr.2019.7.4(2) JEL Classification: M20, M13, M19.


Author(s):  
Andreia Teixeira ◽  
Ronaldo Gabriel ◽  
Luis Quaresma ◽  
Ana Alencoão ◽  
José Martinho ◽  
...  

Background: Obesity is an important public health issue that has increased globally in the last decade and continues to be one of the main causes of morbidity and premature mortality. An accumulating body of evidence suggests that contact with nature is a valuable resource for the promotion of a more active lifestyle and seems to have a central role in maintaining a healthy weight. The authors conducted a systematic review to summarize the findings of studies that investigated the relationship between natural spaces and obesity. Methods: Following Primary Reporting Items for Systematic Reviews and Meta-Analyses guidelines, a literature search was conducted using 11 databases for studies fully available in English and published between 2010 and 2020, with adults (18–64 y) and/or older people (≥65 y). Results: Fifty studies were found that met all the inclusion criteria. The majority (68%) of papers found that higher availability and less distance to green and blue spaces are associated with lower levels of adiposity. These associations were positive, even after adjusting for the demographic and socioeconomic factors. Conclusions: Exploring the characteristics of green and blue spaces seems to be a promising tool for urban planning and health policies. The authors suggest the implementation of exercise programs in contact with nature for future interventions.


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 11 (6) ◽  
pp. 25 ◽  
Author(s):  
Saleh Alzahrani ◽  
Abd Alhadi Hasan

BACKGROUND: The nursing shortage is a common problem in Saudi Arabia with multi-factorial causes. In addition to the low supply of Saudi graduate nurses from training facilities, job satisfaction remains a significant determinant of nurse turnover and intention to leave that contribute to the shortage of nursing workforce. The higher number of expatriate nurses who have a short stay compared to Saudi nurses compounds this problem. Therefore, effective strategies for making the nursing profession attractive and increasing nurse retention in Saudi Arabia are required. OBJECTIVE: The general objective was to examine the impact of transformational leadership style on job satisfaction amongst nurses in hospital settings. Specifically, the appraisal examined how transformational leadership style improves nursing job satisfaction in hospital settings, determined the mediating factors of the relationship between transformational leadership style and nurses’ job satisfaction, and investigated nurses’ perceptions of transformational leadership style compared with other leadership styles. METHODOLOGY: This study was used systematic review design with eight selected quantitative nursing research published between 2012 and 2017. A systematic search of the recent literature was conducted on PubMed, Scopus, Wiley Online, and Web of Science databases using search terms developed a priori to identify the articles that met the inclusion criteria. The quality of the included studies was evaluated by McMaster Critical Review Form for Quantitative Studies. Extracted data were summarised, explored and correlated using narrative synthesis. FINDINGS: Eight studies of cross-sectional design were appraised. Transformational leadership style was positively related to nurses’ job satisfaction. Transactional leadership also had a positive correlation while passive-avoidant or laissez-faire style had a negative relationship. Transformational leadership improved nursing job satisfaction through its dimensions (idealised influence, inspirational motivation, intellectual stimulation and individualised consideration). Nurse empowerment and workplace support mediated the relationship between transformational leadership and nurse job satisfaction. Nurses had a higher perception of transformational style compared to other leadership styles, and job satisfaction was found to improve nurse and patient outcomes. CONCLUSION: Transformational leadership appears to improve job satisfaction of nurses working in a hospital setting that leads to higher nursing retention. Hospital administrators and managers should practice transformational leadership to improve job satisfaction of staff nurses for better nursing outcomes, and leadership skills should be incorporated in the nursing education curriculum. However, further evaluation of transformational leadership in relation to its influencing factors is required.


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.


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