Authors : I. Wayan Edi Arsawan, I. Ketut Pasek and Ni. Putu Santi Suryantini
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.
I. Wayan Edi Arsawan, I. Ketut Pasek and Ni. Putu Santi Suryantini, 2017. Impact of Transformational and Transactional Leadership Styles on Organizational Commitment and SMEs Business Performance: A Comparative Analysis. International Business Management, 11: 1583-1591.