Leadership styles and business performance: a study of service-based SMEs amidst the COVID-19 pandemic in Klang Valley, Malaysia

The lacklustre performance of Malaysian SMEs was exacerbated during the COVID-19 pandemic. The study aims to understand factors affecting SME survival in an environment characterised by volatility, uncertainty, complexity, and ambiguity (VUCA), from a leadership perspective. A qualitative method was employed using a multiple case study design to better understand the experiences of the target population who are owners/managers in the SME services sub-sector in Malaysia during the COVID-19 pandemic. They were recruited using a purposive sample technique and the data were analysed using NVivo 11® data analysis software. From the study, SME leaders who have acclimatised to the new normal of COVID-19 by inspiring and empathising with employees while practising effective communication, and collective leadership with the use of digital technology survived the crisis. Leadership best practices were maintained by creativity, innovation and lifelong learning. The findings suggest an adaptive leadership style that combines traits from multiple dominant styles.