International Business Management

Year: 2021
Volume: 15
Issue: 3
Page No. 102 - 107

The Effect of Leadership Style and Organizational Culture on Performance of Small and Medium Enterprises in Jigjiga City: A Literature Review

Authors : Regan Debebe Beluhu

Abstract: The formula for good management of Small and Medium Scale Enterprises (SMEs) is simple enough to develop a sound plan, design appropriate organizational structure, to implement the plans and monitoring the performance of the business. This research study examined the relationship between, leadership styles, organizational culture and organizational performance. In other words, it looked at the effects of a leadership styles and organization’s culture uses on its overall performance. Therefore, the problem of this study is to determine whether leadership styles and organizational culture affect organizational performance. The main objectives of this research are to assess whether leadership styles affect organizational performance and to assess whether organizational culture affects organizational performance. The research is a conceptual research. Explanatory research design is used in the study. And all data used in this research are obtained from secondary sources. That is, they are data from the findings of previous research works on leadership and culture on performance. The findings of this study have also shown that leadership styles have significant effects on organizational performance. While autocratic leadership style is not a good form of leadership as it decreases performance autocratic leadership style leads to high overall performance. Furthermore, the results of the research have shown that transactional leadership style and transformational leadership style also lead to high organizational performance.

How to cite this article:

Regan Debebe Beluhu , 2021. The Effect of Leadership Style and Organizational Culture on Performance of Small and Medium Enterprises in Jigjiga City: A Literature Review. International Business Management, 15: 102-107.

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