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Will Transformational Leadership Style Increase Organizational Performance in MSMEs?

Year: 2025

Type: article

Abstract: To achieve MSME innovation and performance, leadership is crucial. Burns's divided leadership into transformational and transactional styles is one of the key theories of leadership. The purpose of this essay is to pinpoint the best leadership philosophies for enhancing SME organizational performance. This study included a methodical review of the literature. According to the study's findings, transformational leadership is thought to enhance organizational performance in SMEs. Contrarily, there is little evidence that the transactional leadership style improves organizational performance in SMEs. In conclusion, transformational leadership is more crucial than transactional leadership for enhancing MSME performance. These findings help MSME executives develop transformational leadership, which is focused on the charisma of the leader.

Source: Journal of Organizational and Human Resource Development Strategies

DOI: 10.56741/ohds.v2i01.965

Authors: Khoirun Nisa Bahri, Vanessa Gaffar, Lili Adi Wibowo, Puspo Dewi Dirgantari, Rofi Rofaida

Institutions: Universitas 'Aisyiyah Bandung, Indonesia University of Education

Language: English

Topic: Employee Performance and Leadership

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W4411506203

FWCI:

Cites: 21

Cited by:

Related to: 10