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Leadership and Performance: The Case of Malaysian SMEs in the Services Sector

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  • Ahmad Fadhly Arham

Abstract

Most of SMEs in Malaysia are in the services industry. The industry is believed to largely contribute to Malaysia’s economy. The success and performance of services SMEs are obviously depended upon several contributing factors – managers’ leadership skills and qualities are reported to be two of them. The current study, aims to investigate the impact of leadership behaviours on the performance of services SMEs in Malaysia. 193 owners and top managers of services SMEs in Malaysia participated in the study. The results revealed that: a) there were significant relationships between different leadership behaviours and organisational performance of services SMEs; and b) transformational leadership contributed more significantly to the performance of SMEs than transactional leadership behaviour. The findings implicate that leadership behaviour of leaders of SMEs is one of the essential factors that influences SMEs performance in the services sector.

Suggested Citation

  • Ahmad Fadhly Arham, 2014. "Leadership and Performance: The Case of Malaysian SMEs in the Services Sector," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 2(3), pages 343-355.
    • Handle: RePEc:asi:ijoass:v:2:y:2014:i:3:p:343-355:id:2638
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    Citations

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    Cited by:

    1. Anne Irungu & Robert Arasa, 2017. "Factors Influencing Competitiveness of Small and Medium Enterprises (SMEs) in Nairobi County, Kenya," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 161-173.
    2. Niyi Israel Akeke, 2016. "Factor of Strategic Leadership: Antidote to Firm Performance," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 7(1), pages 7-13.
    3. Mitra Madanchian & Hamed Taherdoost, 2017. "Role of Leadership in Small and Medium Enterprises (SMEs)," Post-Print hal-03741845, HAL.
    4. Mitra Madanchian & Hamed Taherdoost, 2017. "Role of Leadership in Small and Medium Enterprises (SMEs)," Post-Print hal-02557381, HAL.
    5. Joko Triraharjo & Havidz Aima & Achmad Sutawijaya, 2019. "The Effect of Servant Leadership and Breakthrough Leadership on Organization Performance with Employee Satisfaction as Intervening Variable at IDX-listed (Indonesia Stock Exchange) Coal Mining Compani," International Review of Management and Marketing, Econjournals, vol. 9(3), pages 166-172.
    6. Chido Samantha Madhanga & Steven Kayambazinthu Msosa & Tatenda Chikukwa, 2022. "Assessing various leadership styles used at a multinational company specialising in marine services in Sub-Saharan Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 136-143, March.
    7. Jekelle, Helen Elena, 2021. "Leadership Styles Dimensions and Organizational Commitment Nexus: Evidence from a Public Sector in Nigeria," OSF Preprints djkqz, Center for Open Science.
    8. Azizah Hashim & Che Mohd Zulkifli Che Omar & Mohd Sahandri Gani Hamzah & Azmi Umar, 2018. "Leadership Behaviour, Entrepreneurial Orientation and Organisational Performance in Malaysian Small and Medium Enterprises," International Business Research, Canadian Center of Science and Education, vol. 11(9), pages 37-50, September.

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