LEADERSHIP STYLES, SME SIZE AND ORGANIZATIONAL PERFORMANCE OF SMALL AND MEDIUM SIZED ENTERPRISES IN MOMBASA COUNTY, KENYA
Abstract
Performance is a reflection of productivity of members of an enterprise measured in terms of revenue, profit, growth, development and expansion of an organization. The main objective of this study was to evaluate the moderating effect of SME size on leadership styles and organizational performance in small and medium enterprises in Mombasa County, Kenya. This study used the contingency leadership theory, transformational leadership theory, behavioural theory and chasm theory of growth. The target population of this study was 374 SMEs operating within in Mombasa County while sample size was 193 SMEs arrived at using Yamane’s formula. Correlation results revealed that autocratic leadership style, transactional leadership style, bureaucratic leadership style and laissez faire leadership style had positive correlation with organizational Performance. Regression results revealed that autocratic leadership style, transaction leadership style and laissez-faire leadership style had positive significant influence on organizational performance while bureaucratic leadership style had a positive but insignificant relationship in organizational performance. Further, the study found out that SME size positively and significantly moderates the relationship between autocratic leadership style, bureaucratic style and SME performance. SME size positively but insignificantly moderates the relationship between transactional leadership style, laissez faire and SME performance.
Key words: Autocratic Leadership Style, Bureaucratic Leadership Style, Laissez-Faire Leadership Style, Performance, Transactional Leadership Style, SME Size
CITATION: Kalama, B., Kavale, S., & Chumo, K. (2024). Leadership Styles, SME size and organizational performance of small and medium sized enterprises in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 11 (1), 315 – 331. http://dx.doi.org/10.61426/sjbcm.v11i1.2854
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i1.2854
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