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The Effect of Leadership Styles on the Business Performance of SMEs in Malaysia

Author

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  • Roslan Abdul Aziz
  • Mohd Hussin Abdullah
  • Anas Tajudin

Abstract

This paper investigates the effect of leadership styles on the business performance of SMEs in Malaysia. The owner/managers were sent a package of questionnaires which comprised the Multifactor Leadership Questionnaire MLQ 5X, the Business Performance BP questionnaire and the demographic questionnaire. The findings revealed that there were significant positive relationships between transactional leadership and business performance and transformational leadership and business performance. The findings also found that passive-avoidant leadership was negatively correlated with business performance. The findings can be generalized that transactional and transformational leadership styles were the dominant form of leaderships displayed by the owner/managers of the SMEs in Malaysia. This study also provides an opportunity to expand the research on other industries such as manufacturing, constructions, agricultures and telecommunications.

Suggested Citation

  • Roslan Abdul Aziz & Mohd Hussin Abdullah & Anas Tajudin, 2013. "The Effect of Leadership Styles on the Business Performance of SMEs in Malaysia," International Journal of Economics, Business and Management Studies, Online Science Publishing, vol. 2(2), pages 45-52.
    • Handle: RePEc:onl:ijebms:v:2:y:2013:i:2:p:45-52:id:301
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    Citations

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    Cited by:

    1. Jide Jeleel OGUNLADE, PhD, 2023. "Effect of Leadership Styles on Performance of Micro, Small and Medium Enterprises in South West Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(12), pages 01-17, December.
    2. Makinde Olubisi G & Asikhia Olalekan U, 2018. "Strategic Planning and Performance of Nigerian SMEs: The Moderating Role of Entrepreneurial Characteristics," Journal of Economics and Behavioral Studies, AMH International, vol. 9(6), pages 98-108.
    3. Jackline Akoth ODERO, 2023. "Transactional Leadership Style And Strategic Plan Implementation: The Moderating Role Of Organizational Culture," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 21-40, March.
    4. Shafique Ur Rehman & Anam Bhatti & Naveed Iqbal Chaudhry, 2019. "Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-24, December.
    5. Metin Ocak & Alperen Ozturk, 2018. "The Role of Transformational Leadership Behaviours’ Effects on Corporate Entrepreneurship Behaviours and Financial Performance of Firms," International Review of Management and Marketing, Econjournals, vol. 8(4), pages 45-55.

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