TY  - JOUR
T1  - Impact of Transformational and Transactional Leadership Styles on Organizational
Commitment and SMEs Business Performance: A Comparative Analysis
AU - Edi Arsawan, I. Wayan AU - Pasek, I. Ketut AU - Suryantini, Ni. Putu Santi 
JO  - International Business Management
VL  - 11
IS  - 8
SP  - 1583
EP  - 1591
PY  - 2017
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2017.1583.1591
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2017.1583.1591
KW  - Business performance
KW  -organizational commitment
KW  -transformational
KW  -transactional leadership
KW  -enterprises
KW  -appropriate
AB  - This study has investigated the impact of leadership styles on organizational commitment and
business performance and impact of organizational commitment on business performance of SMEs in Bali,
Indonesia. The study adopted a survey design using a semantic differential scale quitionaire sent to 118
managers and assistent managers from 59 SMEs out of the total population of 70 SMEs. The data analysis
employed Partial Least Square (PLS-3). The result showed that both transformational and transactional
leadership styles had significant positive effect on organizational commitment and SMEs business performance
and organizational commitment had significant positive effect on business performance. The study concluded
that transactional leadership was more appropriate in inducing commitment and business performance in small
medium enterprises than transformational leadership style and therefore, recommended transactional leadership
style for the small enterprises with inbuilt strategies for transition, the enterprises developed, grew and
sustainability.
ER  - 