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Exploring the Impact of Leadership Style and Organizational Culture on Employee Performance in Malaysian SMES

Author

Listed:
  • Muhammad Faizal Samat

    ("Faculty of Business and Management, Universiti Teknologi Mara, 40450 Shah Alam, Selangor, Malaysia " Author-2-Name: Zaim Aizat Afdhal Bashri Author-2-Workplace-Name: "SEGI College Kuala Lumpur, 33-35, Jalan Hang Lekiu, 50100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur Malaysia. " Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

" Objective - This study investigates the impact of cashless payment adoption on the performance of Small and Medium Enterprises in Malaysia, examining the mediating role of facilitating conditions. Drawing upon the Diffusion of Innovation Theory, we propose a model where government support, organizational support, technological support, and trust influence cashless payment adoption. Methodology/Technique - The research adopts a quantitative approach using structured questionnaires distributed among employees in various Malaysian SMEs. Data were analyzed using statistical tools, including regression analysis, to determine the strength and nature of relationships between the variables. Finding - The results reveal that transformational leadership and a supportive organizational culture significantly enhance employee performance. In contrast, autocratic leadership styles tend to have a negative effect. The study also finds that organizational culture plays a mediating role in the relationship between leadership style and employee performance. Novelty - This paper contributes to the existing literature by focusing specifically on Malaysian SMEs, providing empirical evidence on the interplay between leadership styles, organizational culture, and performance—an area previously underexplored in the Southeast Asian context. Type of Paper - Empirical"

Suggested Citation

  • Muhammad Faizal Samat, 2025. "Exploring the Impact of Leadership Style and Organizational Culture on Employee Performance in Malaysian SMES," GATR Journals gjbssr662, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:gjbssr662
    DOI: https://doi.org/10.35609/gjbssr.2025.13.1(2)
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    More about this item

    Keywords

    Leadership style; organizational culture; employee performance; SMEs; Malaysia;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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