dc.description.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 effects of leadership styles on
organizational performance in small and medium enterprises in Mombasa County,
Kenya. The study was guided by the following objectives; to investigate the effects of
autocratic leadership style, transactional leadership style, bureaucratic leadership style
and laissez-faire leadership style on 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. Explanatory research design was most appropriate for its ability in developing
an explanation of a causal relationship between independent and dependent variables.
The target population of this study was 374 entrepreneurs operating within in Mombasa
County, which included Catering and accommodation, General trade, Wholesalers and
retailers, Professionals, financial and Technical services. Yamane’s formula was
applied to generate a sample size of 193 SMEs. Primary data was collected by using
structured questionnaires. The structured questionnaire had two parts. Part one covered
the general information of the respondents while part two covered objective variables
and dependent variables questions. The questions in part two were designed using a 5
point Likert scale ranging (1 to 5). The research instrument was pilot tested in 25 SMEs
across the county. Content validity was tested by the expert judgment of the supervisors.
This study used Cronbach’s coefficient alpha to test the internal consistency of the data
measurement instrument. The data collected was analyzed using Statistical Package for
the Social Sciences (SPSS) version 21. Correlation results revealed that Autocratic
Leadership Style (r=.446, p=.001), Transaction Leadership Style (r=.692, p=.000),
Bureaucratic Leadership Style (r=.320, p=.000), and Laissez faire Leadership Style
(r=.566, p=.000) had positive significant correlation with organizational Performance.
Regression results revealed that autocratic leadership style (β =.236, p=.051),
transaction leadership style (β=.255, p=.011), laissez-faire leadership style (β =.267,
p=.019) had positive significant influence on organizational performance while
bureaucratic (β =.272, p=.001) had a positive but insignificant relationship in
organizational performance. Autocratic (β=.318, p=.001), Laissez faire (β=.153,
p=.043) interaction term is positive and significant, whereas Transaction (β=.115,
p=.355) Bureaucratic (β=.025, p=.743) relation terms is positive but insignificant,
insignificant suggesting that SME size does not significantly moderate the positive
relationship between Autocratic, Transaction ,Bureaucratic leadership style and
organizational Performance. R
2 was 61.5 % and ANOVA (F 34.060 p=.000) was
significant. The study concluded that autocratic leadership style, transaction leadership
Style, bureaucratic leadership style and laissez-faire leadership style influences
organizational performance. The study recommended that managers should implement
autocratic leadership style, transaction leadership style, bureaucratic leadership style
and laissez-faire leadership style to improve on Organizational Performance. |
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