scholarly journals Theory and Evidence on the Relationship between Leadership Style and Organizational Performance: A Case in Small Medium Enterprises in East Malaysia

2020 ◽  
Vol 13 (7) ◽  
pp. 265
Author(s):  
Dato‘ Dr. Jelani Bin Hamdan

This research intends to provide the theoretical evidence on the relationship between leadership style and organizational performance of small medium enterprises (SMEs) in East Malaysia.  The growth organizational performances among SMEs in East Malaysia have been at stagnant stage, as they are not able to respond to unforeseen issues due to weak leadership. The SMEs in East Malaysia are losing their competitive advantages as compared to West Malaysia. There is lack of motivation among the followers working in SMEs in East Malaysia as employees do not put extra effort in their tasks. There is absence of creativity in workplace as employees have not been giving any productive output from a long time. Previous research have documented that there are relationships between leadership style and organizational performance in SMEs in East Malaysia. The current study steps forward to contribute to gaps in body of knowledge by looking at the effects that occur due to different leadership style and its influence on the organizational performance in SMEs in East Malaysia. The nature of this study add to the existing literature by integrating the theory and evidence that could enhance organizational performance.

2020 ◽  
Vol 5 (1) ◽  
pp. 98
Author(s):  
Anita Ahmad Kasim ◽  
Raziyan Dwi Pathan

 Abstract—PT Sarana Sulteng Ventura is one company that aims to provide loan capital is micro, small, and medium enterprises (UMKM) as a venture partner timed short or long to be able to stand on its own with loan capital that fits with the kind of effort that it takes for the customer. In providing venture capital loans, the company has some terms and conditions that apply. and the company still cultivate customer data manually so that it takes quite a long time. Then with this author makes the eligibility decision support system which will facilitate customer acceptance staff employees of PT Sarana Sulteng Ventura to pre-screen customer deserves a loan business capital to client or small medium enterprises. The researchers used a system that is web -based systems using the programming language PHP and MySQL into its data base processing and sublime text 2 as editor of programming languages. This research used the method of profile matching process to perform the calculation of assessments to help give the eligibility decision of acceptance the customer at PT. Sarana Sulteng Ventura city of Palu.


Author(s):  
Octavio Álvarez ◽  
Isabel Castillo ◽  
Vladimir Molina-García ◽  
Inés Tomás

Despite the well-known positive consequences of transformational coaches in sport, there is still little research exploring the mechanisms through which coaches’ transformational leadership exerts its impact on athletes. Multilevel SEM was used to examine the relationship between coaches’ transformational leadership style, a task-involving climate, and leadership effectiveness outcome criteria (i.e., players’ extra effort, coach effectiveness, and satisfaction with their coach), separately estimating between and within effects. A representative sample of 625 Spanish male soccer players ranging from 16 to 18 years old and nested in 50 teams completed a questionnaire package tapping the variables of interest. Results confirmed that at the team level, team perceptions of transformational leadership positively predicted teams’ perceptions of task climate, which in turn positively predicted the three outcome criteria. At the individual level, players’ perceptions of transformational leadership positively predicted teams’ perceptions of task climate, which in turn positively predicted teams’ extra effort and coach effectiveness. Mediation effects appeared at the team level for all the outcome criteria, and at the individual only for extra effort. Transformational leadership is recommended to enhance task climate, in order to increase players’ extra effort, their perceptions of the effectiveness of their coach, and their satisfaction with his/her leadership style.


2006 ◽  
Vol 19 (1) ◽  
pp. 29-48 ◽  
Author(s):  
Dianne H. B. Welsh ◽  
Peter Raven

The Middle East is a growing, lucrative marketplace that has recently captured the interest of the world for political as well as economic reasons due to the War in Iraq, which began in 2003. This exploratory study examines the relationship between retail small/medium enterprises (SMEs) that are family business owned, organizational commitment, and management and employee perceptions of customer service on a number of dimensions. The results suggest that managers and employees of family-owned businesses in the Middle East behave in ways similar to those in Western countries; however, there are differences, probably related to cultural characteristics. The Middle East is a richly diverse region, a myriad of unique cultures. As the market becomes more sophisticated, the importance of service quality increases. Global retailers can benefit from this study by better understanding the managers and employees in the region and the pivotal role of the family on business. Implications for practice are discussed.


2014 ◽  
Vol 52 (8) ◽  
pp. 1491-1515 ◽  
Author(s):  
Marco Cucculelli ◽  
Cristina Bettinelli ◽  
Angelo Renoldi

Purpose – The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises (SMEs) during recessions. Design/methodology/approach – Contingency theory is applied to a data set of 376 Italian clothing SMEs during the period 2000-2010 to test whether investment in R&D and advertising impacts financial performance differently when contingent factors (such as market share, financial leverage and business model change) are taken into account. Findings – Empirical results confirm that market share and leverage moderate the effects of investments in R&D and advertising (i.e. intangibles) on performance, and also that changes in business models are an important contingent factor that explains performance. Specifically, the paper ascertains that a novelty-centered business model, together with investments in intangibles, positively affects performance during recessions. Originality/value – This study offers an input to the debate on how SMEs develop and sustain their competitive advantage during the recession. It contributes to existent theory by showing whether and how contingencies, such as a firm's market share and leverage, moderate the relationship between performance and investments in R&D and advertising in SMEs. Second, it addresses the call for additional data “about the strategic effects of business models and how they influence the positioning of firms in their competitive environment” (Amit and Zott, 2008, p. 20) by introducing business model change/innovation as a new contingency factor and by empirically testing its effects on “objective measures of firm performance” (Bock et al., 2012, p. 301).


2019 ◽  
Vol 8 (3) ◽  
pp. 6612-6621

Purpose- The purpose of this paper is to explore the relationship between individual focused and group focused Transformational Leadership and outcomes measured in terms of extra effort, effectiveness and satisfaction through an empirical survey in three Indian industry segments. Transformational leadership is a leadership form which is fully evolved. Leadership is essentially motivating others but not coercing them. The focus of transformational leadership is to change the thought process of the followers to enable them to contribute their might for the organization instead of seeking rewards from the organization. Transformational leadership was explained in detail by James M Burns and was further elaborated by Bass and Avolio as consisting of five leadership constructs ie idealized influence related to the leader’s behaviors, idealized influence related to the leader’s attributes, inspirational motivation, intellectual stimulation, and individualized consideration. Process- Correlation between Transformational leadership and its impact in motivating people has been an interesting subject to evaluate. Bass and Avolio developed MLQ ( Multi factor leadership questionnaire ) to carry out such a study. This survey was carried out in a large Indian Paper and Paperboard manufacturing division, a tobacco division and an agri division of an enterprise of repute in which about 326 managers participated and the survey findings were subjected to statistical analysis. Findings-Transformational leadership is reputed to enhance employee satisfaction, motivation, technological innovation, and leader effectiveness ratings. While all of these have been proved by the survey quoted above, it was interesting to note the relationship between Individual focused leadership and Group focused leadership and the outcomes measured in terms of extra effort, effectiveness and satisfaction. Research limitations-In the empirical survey carried out, participants were males which is a limitation caused by non availability of lady managers. Originality/value-The current research compared the individual constructs of the Leadership style in terms of Individual focused leadership and Group focused leadership and each of the outcomes in detail and established their relationship.


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.


2021 ◽  
pp. 159-168
Author(s):  
Thi Van Anh Bui ◽  
Thi Thuy Hang Pham ◽  
Xuan Trang Phung ◽  
Cong Thanh Le ◽  
Ngoc Toan Nguyen

The objective of this article is to evaluate the impact of Transformational Leadership on Organizational Innovation, Supply chain Integration and Organizational Performance. Research was carried out on 562 Vietnamese textile and garment enterprises. We use Smart PLS 3.6 software for data analysis. The results show that Transformational Leadership had a positive impact on Organizational Innovation, Supply chain Integration and Organizational Performance. In addition, the Supply chain Integration plays a role as a complete mediate in the relationship between Organizational Innovation and Organizational Performance. Size has a statistically significant moderate role on the relationship between Organizational Innovation and Organizational Performance. Finally, the leader qualification has a statistically significant moderate role in the relationship between Transformational Leadership and Organizational Performance. From the above results, we recommend the leaders of Vietnamese textile and garment enterprises to improve leadership capacity, apply a transformational leadership style to improve organizational performance.


2020 ◽  
Vol 23 (02) ◽  
pp. 2050012
Author(s):  
Omar Farooq ◽  
Angie Abdel Zaher

The paper examines the relationship between ownership concentrations and tax avoidance for small–medium enterprises (SMEs) in India. With a panel dataset built from small- and medium-sized enterprise surveys over the period between 2013 and 2014, we find that SMEs with concentrated ownership have a negative association with tax avoidance. The result is more pronounced for SMEs headquartered in states/provinces with stronger economic and institutional environment. The results also indicate that for any two SMEs with similar levels of ownership concentration, the SME with higher capital needs is more likely to avoid taxes.


Industry 4.0 brings a challenge in terms of labor reduction. However, there is an opportunity in job creation for the creative industry/economy. The creative economy in Indonesia shows an increasingly contribution to the Indonesian economy in recent years, and it is also predicted to continue increasing in the future. Leadership for the entrepreneur is needed to make their business entity (Micro Small Medium Enterprises) to survive and succeed. This research aims to find out whether there is a difference in entrepreneurial leadership style with four demographic variables, i.e., gender, age, education level, and marital status.


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