IDEAS home Printed from https://ideas.repec.org/a/sae/jouent/v8y2022i1p60-82.html
   My bibliography  Save this article

Leadership Styles and Small Enterprises’ Performance: Is Gender an Issue? Empirical Study from Democratic Republic of Congo

Author

Listed:
  • Deogratias Bugandwa Mungu Akonkwa
  • Elie Lunanga
  • Joseph Bahati Mukulu
  • Toussaint Ciza Bugandwa
  • Elizabeth Furaha Mwaza

Abstract

In this paper, we provide new empirical evidence to the relationships between leadership styles (LS) and organizational performance, introducing gender as moderator variable. Data have been collected in two Congolese towns (Bukavu and Goma); an African post-conflict region dominated by very small family businesses that have not received enough attention. Combining exploratory factor analysis with a multivariate regression we found three main results. First, both leadership and performance are confirmed to be multidimensional. LS comprised participative/democratic leadership, and autocratic/directive leadership, while performance has three dimensions: employee efficiency/productivity, effectiveness, and customer satisfaction/retention. Second, the autocratic leadership is the more adopted both by men and women, with a slight non-significant difference for men. Although democratic leadership is underscored, it appears to be more adopted by women with significant difference. Third, controlling for other variables, only participative/democratic leadership styles have positive impact on SMEs’ performance, while autocratic leadership does not influence it. This implies that, in the growing competition facing SMEs, managers should adopt leadership style that allows their employees to internalize the firm’s objectives and to be committed. Also, our research confirms that women have much to give in managing enterprises, as they appear to be stronger in leadership styles, which have more impact on main dimensions of firms’ performance. Moreover, our results suggest new avenues for deeper research about leadership styles in family-owned enterprises.

Suggested Citation

  • Deogratias Bugandwa Mungu Akonkwa & Elie Lunanga & Joseph Bahati Mukulu & Toussaint Ciza Bugandwa & Elizabeth Furaha Mwaza, 2022. "Leadership Styles and Small Enterprises’ Performance: Is Gender an Issue? Empirical Study from Democratic Republic of Congo," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 60-82, January.
  • Handle: RePEc:sae:jouent:v:8:y:2022:i:1:p:60-82
    DOI: 10.1177/23939575211044318
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/23939575211044318
    Download Restriction: no

    File URL: https://libkey.io/10.1177/23939575211044318?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mohannad Sami Tawaha, 2016. "The Impact of Leadership Styles on Enhancing the Financial Performance through the Strategic Alignment in the Jordanian Insurance Companies," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(6), pages 116-131, June.
    2. Claessens, Stijn & Djankov, Simeon & Lang, Larry H. P., 2000. "The separation of ownership and control in East Asian Corporations," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 81-112.
    3. Florence Noguera & Jean-Michel Plane, 2016. "Leadership : recherches et pratiques," Post-Print hal-03050510, HAL.
    4. Mihaela Ionascu & Ion Ionascu & Marian Sacarin & Mihaela Minu, 2018. "Women on Boards and Financial Performance: Evidence from a European Emerging Market," Sustainability, MDPI, vol. 10(5), pages 1-18, May.
    5. repec:hal:journl:dumas-00914558 is not listed on IDEAS
    6. Sarah Saint-Michel & Nouchka Wielhorski, 2011. "Style de leadership, LMX et engagement organisationnel des salariés : le genre du leader a-t-il un impact ?," Post-Print hal-01907955, HAL.
    7. Kotiranta, Annu & Kovalainen, Anne & Rouvinen, Petri, 2007. "Does Female Leadership Boost Firm Profitability?," Discussion Papers 1110, The Research Institute of the Finnish Economy.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Geoffrey Rogito Nyamotal & Dionysious Kihika Kiambi & Kirema Nkanata Mburugu, 2024. "Influence of Democratic Leadership Style on the Performance of Agricultural Enterprises in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(6), pages 2441-2453, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ararat, Melsa & Claessens, Stijn & Yurtoglu, B. Burcin, 2021. "Corporate governance in emerging markets: A selective review and an agenda for future research," Emerging Markets Review, Elsevier, vol. 48(C).
    2. Kooyul Jung & Boyoung Kim & Byungmo Kim, 2009. "Tax Motivated Income Shifting and Korean Business Groups (Chaebol)," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(5‐6), pages 552-586, June.
    3. Rudi Zulfikar & Nana Nofianti & Kurniasih Dwi Astuti & Meutia Meutia & Aldi Ramadan, 2020. "The Role of Ownership’s Concentration Moderating Dividend Policy Effects on Firm Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 126-135.
    4. Yin‐Hua Yeh & Pei‐Gi Shu & Re‐Jin Guo, 2008. "Ownership Structure and IPO Valuation—Evidence from Taiwan," Financial Management, Financial Management Association International, vol. 37(1), pages 141-161, March.
    5. Z. Jun Lin & Shengqiang Liu & Fangcheng Sun, 2017. "The Impact of Financing Constraints and Agency Costs on Corporate R&D Investment: Evidence from China," International Review of Finance, International Review of Finance Ltd., vol. 17(1), pages 3-42, March.
    6. Xiaodong Teng & Kun-Shan Wu & Lopin Kuo & Bao-Guang Chang, 2023. "Investigating the double-edged sword effect of environmental, social and governance practices on corporate risk-taking in the high-tech industry," Oeconomia Copernicana, Institute of Economic Research, vol. 14(2), pages 511-549, June.
    7. Sergey Stepanov, 2012. "Takeovers under Asymmetric Information: Block Trades and Tender Offers in Equilibrium," Working Papers w0185, Center for Economic and Financial Research (CEFIR).
    8. Katsuhiko Muramiya & Tomomi Takada, 2015. "Cross-Shareholdings and Information Environment," Discussion Papers in Economics and Business 15-20, Osaka University, Graduate School of Economics.
    9. Nenova, Tatiana, 2003. "The value of corporate voting rights and control: A cross-country analysis," Journal of Financial Economics, Elsevier, vol. 68(3), pages 325-351, June.
    10. Pursey Heugens & Stelios Zyglidopoulos, 2008. "From social ties to embedded competencies: the case of business groups," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(4), pages 325-341, November.
    11. Owolabi, Oluwarotimi & Pal, Sarmistha, 2011. "The Value of Business Networks in Emerging Economies: An Analysis of Firms' External Financing Opportunities," IZA Discussion Papers 5738, Institute of Labor Economics (IZA).
    12. Yun Song & Hongqu He & Caiyu Yan, 2022. "Impacts of top management team fault‐line on firm's innovation—Financial slack over‐investment and underinvestment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3348-3360, December.
    13. Bert Scholtens & Feng‐Ching Kang, 2013. "Corporate Social Responsibility and Earnings Management: Evidence from Asian Economies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(2), pages 95-112, March.
    14. Henrik Cronqvist & Fredrik Heyman & Mattias Nilsson & Helena Svaleryd & Jonas Vlachos, 2009. "Do Entrenched Managers Pay Their Workers More?," Journal of Finance, American Finance Association, vol. 64(1), pages 309-339, February.
    15. Giannetti, Mariassunta & Simonov, Andrei, 2003. "Which Investors Fear Expropriation? Evidence from Investors' Stock Picking," CEPR Discussion Papers 3843, C.E.P.R. Discussion Papers.
    16. Martin Brown & Steven Ongena & Pinar Yeşin, 2014. "Information Asymmetry and Foreign Currency Borrowing by Small Firms," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(1), pages 110-131, March.
    17. Filatotchev, Igor & Poulsen, Annette & Bell, R. Greg, 2019. "Corporate governance of a multinational enterprise: Firm, industry and institutional perspectives," Journal of Corporate Finance, Elsevier, vol. 57(C), pages 1-8.
    18. Yusen Dong & Pengcheng Ma & Lanzhu Sun & Daniel Han Ming Chng, 2024. "Goodwill Hunting: Why and When Ultimate Controlling Owners Affect Their Firms’ Corporate Social Responsibility Performance," Journal of Business Ethics, Springer, vol. 193(3), pages 535-553, September.
    19. Mara Faccio & Maria-Teresa Marchica & Roberto Mura, 2011. "Large Shareholder Diversification and Corporate Risk-Taking," The Review of Financial Studies, Society for Financial Studies, vol. 24(11), pages 3601-3641.
    20. Imen Derouiche & Majdi Hassan & Sarra Amdouni, 2018. "Ownership structure and investment-cash flow sensitivity," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(1), pages 31-54, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jouent:v:8:y:2022:i:1:p:60-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ediindia.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.