Journal of Organisational Studies and Innovation
Vol. 2, no.2, Summer, 2015
Assessing the Impact of Leadership Styles on Organisational Performance.
“The Case of Saudi Private SME’s”
Fahad Abdulaziz Albloshi and Yehia Sabri Nawar
University of West London

Abstract: The small and medium enterprises (SME) industry in Saudi Arabia accounts for the highest number of businesses compared to other industries established in the country. However, its contribution to economic development has been relatively low. This study investigates the impacts of leadership on the performance of SMEs. Particularly, the study seeks to determine whether the leadership styles used in the various SMEs have any significant impact on their performance.   In carrying out of the research, transactional, transitional, and passive-avoidance leadership techniques were put into consideration. The study incorporated both exploratory and descriptive research designs in interpreting the aforementioned leadership styles. The use of the above research designs is crucial in ensuring the data analysed objectively addresses the variables in the research work. On the other side, methodology applied in conducting the research involved administering Multi-factor Leadership Questionnaires (MLQ), which, essentially, looked into the relationship between the leadership behaviors of each style and the influence they had on the performance of the enterprises. Additionally, a regression model was defined and evaluated. This model is of importance in testing for the significance levels of the variables under analysis.

Keywords: Leadership style, Organisational studies, Performance, SME’s, Saudi Private Sector.