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The Impact of Transformational and Transactional Leadership on Organisational Commitment in Small and Medium Enterprises (SMEs)

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  • Ruzita Manshor
  • Nor Lela Ahmad
  • Nurazlina Samsudin
  • Khairul Nazlin Kamaruzaman
  • Suheil Che Sobry

Abstract

This study was conducted to explore the relationship between leadership styles and organizational commitment in the manufacturing sector in Small and Medium Enterprises (SMEs) in Malaysia. This study utilizes survey methods via questionnaires that involve 452 respondents. Findings from regression analysis show that both transformational and transactional leadership styles have a significant impact on organizational commitment in the manufacturing sector in Malaysian SME firms, especially transformational leadership. Hence, SME management teams are advised not to neglect the aspect of leadership styles in efforts to increase their organization's performance.

Suggested Citation

  • Ruzita Manshor & Nor Lela Ahmad & Nurazlina Samsudin & Khairul Nazlin Kamaruzaman & Suheil Che Sobry, 2024. "The Impact of Transformational and Transactional Leadership on Organisational Commitment in Small and Medium Enterprises (SMEs)," Information Management and Business Review, AMH International, vol. 16(3), pages 740-752.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:3:p:740-752
    DOI: 10.22610/imbr.v16i3(I)S.4104
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    References listed on IDEAS

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