LEADERSHIP STYLE AND EFFECT ON SMALL MEDIUM ENTERPRISES: A SYSTEMATIC LITERATURE REVIEW
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Sep 26, 2022
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Abstract
Research on SME Objects has been increasing recently. Leadership style is the key in enhancing performance organization. This article aims to do studies literature about style leadership both Transformational leadership and transactional leadership as well as their impact on SMEs. The study uses a systematic literature review. Keywords that used are Transformational leadership and SME, transactional leadership and SME. The limited articles in 2019-2020 were obtained from the journal database ScienceDirect. The results of 13 articles to be conducted analysis literature review. The study held in Indonesia, Ghana, Ecuador, India, South Asia, Pakistan, Tunisia, China, Vietnam, and Iraqi Kurdistan. Based on the results analysis article, transformational leadership provides a positive relationship to performance employees, quality life employees, OCB employees, knowledge sharing, satisfaction employees, and improved performance organization in SMEs. Whereas transactional leadership provides little impact _ even no give impact on the performance of SME organizations. results analysis also reveals that a study about transformational leadership and its impact on many SMEs conducted compared to with study about transactional leadership.
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CHANDRANINGTYAS, Iva.
LEADERSHIP STYLE AND EFFECT ON SMALL MEDIUM ENTERPRISES: A SYSTEMATIC LITERATURE REVIEW.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 8, n. 1, p. 387-394, sep. 2022.
ISSN 2541-3333.
Available at: <http://conferences.uin-malang.ac.id/index.php/iconies/article/view/1674>. Date accessed: 26 apr. 2024.
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References
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Boukamcha, F. (2019). The effect of transformational leadership on corporate entrepreneurship in Tunisian SMEs. Leadership and Organization Development Journal , 40 (3), 286–304. https://doi.org/10.1108/LODJ-07-2018-0262
Cortes, AF, & Herrmann, POL (2020). CEO Transformational Leadership And Sme Innovation: The Mediating Role Of Social Capital And Employee Participation. International Journal of Innovation Management , 24 (3), 1–25. https://doi.org/10.1142/S1363919625000243
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Manzoor, F., Wei, L., Nurunnabi, M., Subhan, QA, Shah, SIA, & Fallatah, S. (2019). The impact of transformational leadership on job performance and CSR as mediator in SMEs. Sustainability (Switzerland) , 11 (2), 1–14. https://doi.org/10.3390/su11020436
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Qadir, KH, & Yeşiltaş, M. (2020). Effect of leadership styles on organizational commitment and performance in small- And medium-sized enterprises in Iraqi Kurdistan. Social Behavior and Personality , 48 (9), 46001. https://doi.org/10.2224/SBP.9197
Rao, HM, & Zaidi, U. (2020). How different perceived leadership styles have an influence on organizational commitment on tourism SMEs? African Journal of Hospitality, Tourism and Leisure , 9 (1), 1–17.
Rose, E., & Mamabolo, A. (2019). Transformational leadership as an antecedent and sme performance as a consequence of entrepreneurial orientation in an emerging market context. International Journal of Entrepreneurship , 23 (4), 1–16.
Rr, E. (2020). The effects of leadership and employee performance on innovation performance among Indonesian SMS. Polish Journal of Management Studies , 21 (2), 370–383. https://doi.org/10.17512/pjms.2020.21.2.26
Tambunan, TTH (2011). Development of micro, small and medium enterprises and their constraints: A story from Indonesia. Gadjah Mada International Journal of Business , 13 (1), 21–43. https://doi.org/10.22146/gamaijb.5492
Tuan, VK, & Rajagopal, P. (2019). The Effect of Transformational Leadership Style on Employee Job Satisfaction towards Small and Medium-sized Enterprises (SMEs) in Ho Chi Minh City, Vietnam. Academic Journal of Economic Studies , 5 (4), 156–164.
Afriyie, S. (2020). INNOVATION and KNOWLEDGE SHARING of SME in AN EMERGING ECONOMY; The MODERATING EFFECT of TRANSFORMATIONAL LEADERSHIP STYLE. International Journal of Innovation Management , 24 (4). https://doi.org/10.1142/S1363919625000346
Begum, S., Xia, E., Mehmood, K., Iftikhar, Y., & Li, Y. (2020). The impact of CEOs' transformational leadership on sustainable organizational innovation in messages: A three-wave mediating role of organizational learning and psychological empowerment. Sustainability (Switzerland) , 12 (20), 1–16. https://doi.org/10.3390/su12208620
Boukamcha, F. (2019). The effect of transformational leadership on corporate entrepreneurship in Tunisian SMEs. Leadership and Organization Development Journal , 40 (3), 286–304. https://doi.org/10.1108/LODJ-07-2018-0262
Cortes, AF, & Herrmann, POL (2020). CEO Transformational Leadership And Sme Innovation: The Mediating Role Of Social Capital And Employee Participation. International Journal of Innovation Management , 24 (3), 1–25. https://doi.org/10.1142/S1363919625000243
Dartey-Baah, K. (2020). Leadership Styles and Workplace Wellness Among Ghanaian SME Workers . Advances in Intelligent Systems and Computing (Vol. 961). Springer International Publishing. https://doi.org/10.1007/978-3-030-20154-8_52
Depaul, GA (2016). Nine practices of 21st century leadership : A guide for inspiring creativity, innovation and engagement, 372.
Eagly, AH, Johannesen-Schmidt, MC, & Van Engen, ML (2003). Transformational, Transactional, and Laissez-Faire Leadership Styles: A Meta-Analysis Comparing Women and Men. Psychological Bulletin , 129 (4), 569–591. https://doi.org/10.1037/0033-2909.129.4.569
Feranita, NV, Nugraha, A., & Sukoco, SA (2020). Effect of transformational and transactional leadership on SMEs in Indonesia. Problems and Perspectives in Management , 18 (3), 415–425. https://doi.org/10.21511/ppm.18(3).2020.34
Jermsittiparsert, K. (2020). Leadership and Industry 4.0 As A Tool to Enhance Organizational Performance: Direct and Indirect Role of Job Satisfaction, Competitive Advantage and Business Sustainability. Agile Business Leadership Methods for Industry 4.0 , 233–257. https://doi.org/10.1108/978-1-80043-380-920201014
Kumar, R., & Bhatti, HS (2020). The Impact of Leadership on Employee Performance in SMEs of Australia. The Middle East International Journal for Social Sciences (MEIJSS) , 2 (4), 217–226.
López-Fernández, AM (2018). Business leadership and market competitiveness: New paradigms for design, governance, and performance . Business Leadership and Market Competitiveness: New Paradigms for Design, Governance, and Performance . https://doi.org/10.1007/978-3-030-03347-7
Madanchian, Mitra and Taherdoost, H. (2017). Role of Leadership in Small and Medium Enterprises ( SMEs ). International Journal of Economic and Management Systems , 2 (June), 240–243.
Malik, A., Khan, N., Faisal, S., Javed, S., & Faridi, MR (2020). An investigation on leadership styles for the business productivity and sustainability of small medium enterprises (Sme's). International Journal of Entrepreneurship , 24 (5), 1–10.
Manzoor, F., Wei, L., Nurunnabi, M., Subhan, QA, Shah, SIA, & Fallatah, S. (2019). The impact of transformational leadership on job performance and CSR as mediator in SMEs. Sustainability (Switzerland) , 11 (2), 1–14. https://doi.org/10.3390/su11020436
Moher, D., Liberati, A., Tetzlaff, J., Altman, DG, & Grp, P. (2009). Preferred Reporting Items for Systematic Reviews and Meta-Analyses: The PRISMA Statement (Reprinted from Annals of Internal Medicine). Physical Therapy , 89 (9), 873–880. https://doi.org/10.1371/journal.pmed.1000097
Okręglicka, M., Gorzeń-Mitka, I., & Ogrean, C. (2015). Management Challenges in the Context of a Complex View - SMEs Perspective. Procedia Economics and Finance , 34 (15), 445–452. https://doi.org/10.1016/s2212-5671(15)01653-6
Qadir, KH, & Yeşiltaş, M. (2020). Effect of leadership styles on organizational commitment and performance in small- And medium-sized enterprises in Iraqi Kurdistan. Social Behavior and Personality , 48 (9), 46001. https://doi.org/10.2224/SBP.9197
Rao, HM, & Zaidi, U. (2020). How different perceived leadership styles have an influence on organizational commitment on tourism SMEs? African Journal of Hospitality, Tourism and Leisure , 9 (1), 1–17.
Rose, E., & Mamabolo, A. (2019). Transformational leadership as an antecedent and sme performance as a consequence of entrepreneurial orientation in an emerging market context. International Journal of Entrepreneurship , 23 (4), 1–16.
Rr, E. (2020). The effects of leadership and employee performance on innovation performance among Indonesian SMS. Polish Journal of Management Studies , 21 (2), 370–383. https://doi.org/10.17512/pjms.2020.21.2.26
Tambunan, TTH (2011). Development of micro, small and medium enterprises and their constraints: A story from Indonesia. Gadjah Mada International Journal of Business , 13 (1), 21–43. https://doi.org/10.22146/gamaijb.5492
Tuan, VK, & Rajagopal, P. (2019). The Effect of Transformational Leadership Style on Employee Job Satisfaction towards Small and Medium-sized Enterprises (SMEs) in Ho Chi Minh City, Vietnam. Academic Journal of Economic Studies , 5 (4), 156–164.