Mitra Madanchian A., Hamed Taherdoost



Role of Leadership in Small and Medium Enterprises (SMEs)

pdf PDF



Small and Medium Enterprises (SMEs) play a significant role in a country’s economy and social wellbeing. The literature highlights on the importance of leadership to organizations. On the other hand the review of the literature indicates limited studies have attempted to empirically examine leadership in the context of small and medium-sized enterprises (SMEs). In spite of the importance of leadership, a review of past studies suggests few studies have attempted to investigate leadership behavior adopted by leaders of SMEs. This paper attempted to review literature that examined the leadership behavior practiced by SMEs to give more insights of roles of leadership in SMEs to academician, practitioners and leaders.



Leadership, Small and Medium Enterprises, SMEs, and Organizations



[1] Abu Bakar, J., Mad, C., & Abdul Latif, R. (2006). Liberalization and globalization: a case of Naza and a lesson to SME. Proceedings of Persidangan Kebangsaan IKS 2006.

[2] Amagoh, F. (2009). Leadership development and leadership effectiveness. Management Decision, 47(6), 989-999.

[3] Anderson, G. L. (2009). Advocacy leadership: Toward a post-reform agenda in education: Routledge.

[4] Andersson, S., & Tell, J. (2009). The relationship between the manager and growth in small firms. Journal of small business and Enterprise Development, 16(4), 586-598.

[5] Arham, A. F. (2014). Leadership and Performance: The Case of Malaysian SMEs in the Services Sector. International Journal of Asian Social Science, 4(3), 343-355.

[6] Arham, A. F., Muenjohn, N., & Boucher, C. (2011). The role of entrepreneurial orientation in the leadership-organisational performance relationship: A Malaysian SMEs perspective. Paper presented at the 24th Annual SEAANZ Conference, Australian Technology Park, Sydney, Australia.

[7] Aris, N. M. (2007). SMEs: Building blocks for economic growth. Department of National Statistics, Malaysia.

[8] Arslan, A., & Staub, S. (2013). Theory X and Theory Y Type Leadership Behavior and its Impact on Organizational Performance: Small Business Owners in the Şishane Lighting and Chandelier District. Procedia-Social and Behavioral Sciences, 75, 102-111.

[9] Avolio, B. J., Sosik, J. J., Jung, D. I., & Berson, Y. (2003). Leadership models, methods, and applications. Handbook of psychology.

[10] Avolio, B. J., & Yammarino, F. J. (2013). Transformational and charismatic leadership: The road ahead: Emerald Group Publishing.

[11] Boal, K. B., & Hooijberg, R. (2001). Strategic leadership research: Moving on. The Leadership Quarterly, 11(4), 515-549.

[12] Chen, Y. (2013). Relationships Among Emotional Intelligence, Cultural Intelligence, Job Performance, and Leader Effectiveness: A Study of County Extension Directors in Ohio. The Ohio State University.

[13] Choudhary, A. I., Akhtar, S. A., & Zaheer, A. (2013). Impact of transformational and servant leadership on organizational performance: A comparative analysis. Journal of Business Ethics, 116(2), 433-440.

[14] Davies, J., Hides, M., & Powell, J. (2002). Defining the development needs of entrepreneurs in SMEs. Education+ Training, 44(8/9), 406-412.

[15] Fiedler, F. E. (1996). Research on leadership selection and training: One view of the future. Administrative Science Quarterly, 241-250.

[16] Gul, S., Ahmad, B., Rehman, S. U., Shabir, N., & Razzaq, N. (2012). Leadership styles, turnover intentions and the mediating role of organizational commitment. Paper presented at the Information and Knowledge Management.

[17] Harms, P. D., & Creda, M. (2010). Emotional intelligence and transformational and transactional leadership: A meta-analysis. Journal of Leadership & Organizational Studies, 17(1), 5-17.

[18] Hashim, M. K., Ahmad, S. a., & Zakaria, M. (2012). A Study on Leadership Styles in SMEs.

[19] Kassim, Z. A., & Sulaiman, M. (2011). Market orientation and leadership styles of managers in Malaysia. International Journal of Leadership Studies, 6(2), 230-245.

[20] Kilpatrick, S., Cheers, B., Gilles, M., & Taylor, J. (2009). Boundary crossers, communities, and health: exploring the role of rural health professionals. Health & place, 15(1), 284-290.

[21] Ladzani, M. W. (2010). Evaluation of small and medium-sized enterprises' performance in the built environment.

[22] Langowitz, N. S., & Allen, I. E. (2010). Small Business Leadership: Does Being the Founder Matter? Journal of Small Business & Entrepreneurship, 23(1), 53-63.

[23] Madanchian, M., Hussein, N., Noordin, F., & Taherdoost, H. (2016a). Effects of Leadership on Organizational Performance.

[24] Madanchian, M., Hussein, N., Noordin, F., & Taherdoost, H. (2016b). The Role of SMEs in Economic Development; Case Study of Malaysia.

[25] Mumford, M. D., Zaccaro, S. J., Harding, F. D., Jacobs, T. O., & Fleishman, E. A. (2000). Leadership skills for a changing world: Solving complex social problems. The Leadership Quarterly, 11(1), 11-35.

[26] Peterson, R. S., Smith, D. B., Martorana, P. V., & Owens, P. D. (2003). The impact of chief executive officer personality on top management team dynamics: one mechanism by which leadership affects organizational performance. Journal of Applied Psychology, 88(5), 795.

[27] Popa, O. (2012). Corporate social responsibility–A new perspective for SMEs in Romania. Management and Marketing Journal, 10(1), 153-164.

[28] Razak, R. A. (2011). Entrepreneurial Orientation as a Universal Remedy for the Receding Productivity in Malaysian Small and Medium Enterprises: A Theoretical Perspective. International Journal of Business and Social Science, 2(19).

[29] Saad, S., Perera, T., Achanga, P., Shehab, E., Roy, R., & Nelder, G. (2006). Critical success factors for lean implementation within SMEs. Journal of Manufacturing Technology Management, 17(4), 460-471.

[30] Sahin Danisman, S. B. T., Engin Karadag (2015). The Effect of Leadership on Organizational Performance Leadership and Organizational Otcomes, 10, 26.

[31] Saleh, A., & Ndubisi, N. (2006). SMEs in Malaysia: development issues. Small & Medium Enterprises (SMEs): Malaysian & Global Perspectives, Malaysia: Pearson Prentice Hall.

[32] Samad, S., & Hassan, Z. (2007). Assessing the effects of job satisfaction and psychological contract on organizational commitment among employees in Malaysian SMEs. Paper presented at the The 4th SMEs IN A Global Economy Conference 2007.

[33] Spinelli, R. J. (2006). The applicability of Bass's model of transformational, transactional, and laissez-faire leadership in the hospital administrative environment. Hospital Topics, 84(2), 11-19.

[34] Uchenwamgbe, B.-B. P. (2013). Effects of Leadership Style on Organizational Performance in Small and Medium Scale Enterprises (SMEs) in Nigeria. European Journal of Business and Management, 5(23), 22.

[35] Uchenwamgbe, B. (2013). Effects of leadership style on organizational performance in small and medium scale enterprises (SMEs) in Nigeria. European Journal of Business and Management, 5(23), 53-73.

[36] Youndt, M. A., Subramaniam, M., & Snell, S. A. (2004). Intellectual capital profiles: An examination of investments and returns. Journal of Management studies, 41(2), 335-361. 

Cite this paper

Mitra Madanchian A., Hamed Taherdoost. (2017) Role of Leadership in Small and Medium Enterprises (SMEs). International Journal of Economics and Management Systems, 2, 240-243


Copyright © 2017 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0