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LEADERSHIP STYLES, MANAGEMENT SYSTEMS AND GROWTH: EMPIRICAL EVIDENCE FROM UK OWNER-MANAGED SMEs

Author

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  • YONG WANG

    (Wolverhampton Business School, University of Wolverhampton, Wolverhampton, WV1 1AD, UK)

  • PANIKKOS POUTZIOURIS

    (CIIM-Cyprus International Institute of Management, Akademias Avenue, P.O. Box 20378, CY-2151 Nicosia, Cyprus)

Abstract

Apart from starting, growing and/or sustaining a business, owner-managers in small firms have the responsibility to balance business goals and managerial priorities, with ownership control tendencies and family values (as in the case of the prolific family enterprise) in a fashion that can comfort all business stakeholders. Understanding the inter-relationship among owner-manager's leadership style, intra-organisational management systems, and business growth can enable us to develop insights into how small business leaders masterfully construct a management approach that is conducive to sustainable performance. This empirical paper draws evidence from a large-scale postal survey (5710 respondents) of small and medium sized enterprises (SMEs) in the UK and explores the association of small business managerial style and performance. Logistic regression analysis reveals that the managerial style of entrepreneurs is influenced by a series of demographic and situational factors. Moreover, owner-managed businesses characterised by delegation of authority appear to achieve higher growth in sales and operationalise in a more professional way. The paper concludes with a discussion of the implications. The role of managerial style in interpreting business's growth performance will complement the leadership literature.

Suggested Citation

  • Yong Wang & Panikkos Poutziouris, 2010. "LEADERSHIP STYLES, MANAGEMENT SYSTEMS AND GROWTH: EMPIRICAL EVIDENCE FROM UK OWNER-MANAGED SMEs," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 331-354.
    • Handle: RePEc:wsi:jecxxx:v:18:y:2010:i:03:n:s0218495810000604
    DOI: 10.1142/S0218495810000604
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    References listed on IDEAS

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    1. Garrett, Stephen A., 1987. "American Politics - Presidents and Foreign Policy Making: From FDR to Reagan. By Cecil V. CrabbJr. and Kevin V. Mulcahy (Baton Rouge: Louisiana State University Press, 1986. xiv, 359p. $15.95)," American Political Science Review, Cambridge University Press, vol. 81(4), pages 1365-1365, December.
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    Cited by:

    1. Joanna Dyczkowska & Joanna Dyczkowska, 2018. "Democratic or Autocratic Leadership Style?Participative Management and its Links to rewarding Strategies and Job Satisfaction in SMEs," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 4(2), pages 193-218, April.
    2. Jungwirth, Carola & Barth, Loren, 2013. "The entanglement of intercultural conflicts and “bad” leadership in SMEs," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 67(4), pages 345-363.
    3. Carlos de las Heras-Rosas & Juan Herrera, 2020. "Family Firms and Sustainability. A Longitudinal Analysis," Sustainability, MDPI, vol. 12(13), pages 1-27, July.
    4. Fenwick Jing & Gayle Avery & Harald Bergsteiner, 2014. "Enhancing performance in small professional firms through vision communication and sharing," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 599-620, June.

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