ISSN: 2265-6294

Impact of Leadership Style on SME’s Performance in Malaysia

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Md. Ibrahim Khalil,Dr. Rasheedul Haque,Abdul Rahman bin S Senathirajah,Gan Connie,Binoy Chowdhury

Abstract

This study has investigated the effects of leadership styles on organizational performance in small-scale enterprises in Malaysia. The major objective was to determine the effect of leadership styles on performance in small-scale enterprises. Charismatic leadership, Transformational leadership, Visionary leadership, Culture-based leadership styles were considered in this study. One the other hand SME performance was measured by financial performance, business performance and organizational effectiveness. This study has provided deep insights about the leadership styles; the transformational, charismatic, visionary and culture-based leaderships have a positive impact on the organizational effectiveness, financial and business performance, however, the culture-based leaderships, charismatic and transactional leaderships doesn’t impact on the business performance, as it does not provide opportunities and freedom to employees.

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