Developing an exploratory model to determine the link between organisational culture, leadership style and contingency factors on the corporate strategy of manufacturing SMEs

It is broadly accepted that manufacturing Small and Medium Size Enterprises (SMEs) play a vital role in the economic health of the country. A clearer understanding of the factors that influence the performance of SMEs can help: a) policy makers develop more relevant policies; b) support agencies design and deliver a more appropriate support package, c) education and training establishments design more appropriate and relevant education and training programs, and d) owner/mangers by clarifying, articulating and codifying the key variables. In fact, lack of deep understanding is signalled by some as a major reason for the failure of a number of initiatives designed to make SMEs more competitive. In this paper, the authors present a model of variables that can affect the performance of SMEs. This model was developed through in-depth semi-structured interviews with owner/managers of 20 manufacturing SMEs. Moreover, the authors test the validity of this inductive model using existing literature.