International Business Management
ISSN: OnlineISSN: Print 1993-5250
137
Views
0
Downloads
Impact of Transformational and Transactional Leadership Styles on Organizational Commitment and SMEs Business Performance: A Comparative Analysis
I. Wayan Edi Arsawan, I. Ketut Pasek and Ni. Putu Santi Suryantini
Page: 1583-1591 | Received 21 Sep 2022, Published online: 21 Sep 2022
Full Text Reference XML File PDF File
Abstract
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.
How to cite this article:
I. Wayan Edi Arsawan, I. Ketut Pasek and Ni. Putu Santi Suryantini. Impact of Transformational and Transactional Leadership Styles on Organizational
Commitment and SMEs Business Performance: A Comparative Analysis.
DOI: https://doi.org/10.36478/ibm.2017.1583.1591
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2017.1583.1591