Achievement Oriented Leadership Style and Performance of Manufacturing Small and Medium Enterprises (SMEs) in Nairobi County, Kenya
Keywords:
Achievement Oriented Leadership (AOL), Organizational Performance, Manufacturing, SMEsAbstract
This study sought to examine the influence of achievement oriented leadership (AOL) style on organizational performance of manufacturing SME’s in Nairobi, Kenya. Positivism research philosophy and descriptive correlational research design were used. The target population of interest in the study comprised of managers/owners from 425 SME’s listed members of the Kenya Association of Manufacturers based in Nairobi region. A sample size of 369 managers/owners was derived using stratified random sampling technique. From this, a total of 367 participated in the study, giving a response rate of 99%. Data was collected using self-administered questionnaires. The descriptive statistics covered were mean, standard deviation, skewness and kurtosis while inferential statistics used for data analysis included:-pearson’s correlation, chi-square and binary logistic regression. Binary logistic regression (Cox and Snell R squared) showed that 5.9 % of the probability of organizational performance was explained by achievement oriented leadership style. The parameter estimates indicated that AOL style positively and significantly predicted organizational performance, β= 2.450, p = .000, p < 0.05. Hence, the study rejected the null hypothesis that AOL style does not influence organizational performance in manufacturing SME’s in Nairobi. From the conclusion, AOL style significantly influenced organizational performance in manufacturing SME’s Nairobi, Kenya. The findings provide insights to the owners/managers of manufacturing SME’s on influence of AOL for better performance. This study recommends further research on SME’s from specific manufacturing categories in Kenya, the inclusion of demographic variables and a longitudinal approach to reveal the impact of AOL style on organizational performance over time.
References
Adam, J. K., Indradewa, R., & Syah, T. Y. R. (2020). The Leadership Styles Impact, In Learning Organizations, And Organizational Innovation towards Organizational Performance Over Manufacturing Companies, Indonesia. Journal of Multidisciplinary Academic, 4(2), 63-69.
Anzalone, C. (2017). Difference between task-oriented leaders & relational-oriented leaders. Retrieved September 12, 2019, from http://smallbusiness.chron.com/ differencesbetween-taskorientedleaders-relationaloriented-leaders-35998.html.
Ashford, S. J., Wellman, N., Sully de Luque, M., De Stobbeleir, K. E., & Wollan, M. (2018). Two roads to effectiveness: CEO feedback seeking, vision articulation, and firm performance. Journal of Organizational Behavior, 39(1), 82-95.
Auh, S., Menguc, B., Imer, P., & Uslu, A. (2019). Frontline employee feedback-seeking behavior: how is it formed and when does it matter?. Journal of Service Research, 22(1), 44-59.
Christensen-Salem, A., Kinicki, A., Zhang, Z., & Walumbwa, F. O. (2018). Responses to feedback: The role of acceptance, affect, and creative behavior. Journal of Leadership & Organizational Studies, 25(4), 416-429.
Creswell, J. W., & Creswell, J. D. (2018). Research design: qualitative, quantitative, and mixed methods approaches (5th ed.). Los Аngeles, CA: Sage.
Dokony, H. A. I., Singh, J. S. K., & Arumugam, D. T. (2020). The influence of leadership behaviors based on the Path-Goal theory towards employees’ satisfaction in a developing nation. A study in the telecommunication sector in n’Djamena, Chad. International Journal of Psychosocial Rehabilitation, 24(2).
Dudafa, U. J. (2021). Leadership Group Preference and Its Effect on Staff Performance in Niger Delta University, Wilberforce Island, Bayelsa State. Higher Education of Social Science, 21(1), 15-22.
Hong, S. (2019). A behavioral model of public organizations: Bounded rationality, performance feedback, and negativity bias. Journal of Public Administration Research and Theory, 29(1), 1-17.
House, R.J. and Mitchell, T.R. (1974). Path-goal theory of leadership. Contemporary Business, 3, Fall, 81-98.
Jong, J. (2016). The role of performance feedback and job autonomy in mitigating the negative effect of role ambiguity on employee satisfaction. Public Performance & Management Review, 39(4), 814-834.
Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part II. Accounting horizons, 15(2), 147-160.
Katialem, I. R., Muhanji, S., & Otuya, R. (2018). Entrepreneurial orientation and small and medium enterprises growth: Empirical evidence from SME’s in the manufacturing sector of Nairobi County, Kenya. International Journal of Entrepreneurship and Project Management, 3(2), 38-53.
Lal ‘Arya, M. (2017). A Study of Relationship between Leadership Styles of Principal and Teacher Effectiveness.
Locke, E. A., & Latham, G. P. (2013). Goal Setting Theory, 1990 Gary P. Latham and Edwin A. Locke. In New developments in goal setting and task performance (pp. 27-39). Routledge.
Martono, S., Khoiruddin, M., & Wulansari, N. A. (2018). Remuneration reward management system as a driven factor of employee performance. International Journal of Business & Society, 19.
Mersha, D., & Ayenew, Z. (2018). Determinants of Access to Finance of Smallholder Farmers. Journal of Business and economics, 1(1), 129-131.
Mkheimer, I. (2018). The impact of leadership styles on business success: A Case Study on SMEs in Amman. Arabian Journal of Business Management Review, 8(343), 2.
Mutonyi, N., K’Aol, G., & Ouma, C. (2021). Influence of Supportive Leadership Style on the Innovative Behavior of Senior Managers in the Manufacturing Sector in Kenya. The University Journal, 3(1).
Mwaisaka, D. M., K’Aol, G., & Ouma, C. (2019). Influence of participative leadership style on employee job satisfaction in commercial banks in Kenya. European Journal of Business and Strategic Management, 4(3), 23-45.
Ngugi, E. W., & Bula, H. (2019). Performance management practices and employee performance in selected public schools in Kiambu County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(7), 533-551.
Northouse, P. G. (2017). Introduction to leadership: Concepts and practice. Sage Publications.
Northouse, P. G. (2018). Leadership: Theory and practice. Sage publications.
OECD (2019) SME and Entrepreneurship Outlook. Retrieved from https://www.oecd.org/industry/oecd-sme-and-entrepreneurship-outlook-2019-34907e9c-en.htm.
Palalic, R. (2017). The phenomenon of entrepreneurial leadership in gazelles and mice: A qualitative study from Bosnia and Herzegovina. World Review of Entrepreneurship, Management and Sustainable Development, 13(2-3), 211-236.
Pang, K., & Lu, C. S. (2018). Organizational motivation, employee job satisfaction and organizational performance. Maritime Business Review.
Rana, R., K'Aol, G., & Kirubi, M. (2019). Influence of directive and achievement oriented path-goal leadership styles on employee performance of coffee trading companies in Kenya. International Journal of Research in Business and Social Science (2147-4478), 8(6), 137-147.
Ryu, G., & Hong, S. W. (2020). The mediating effect of trust in supervisors in the relationship between constructive performance feedback and perceived fairness of performance appraisal. Public Performance & Management Review, 43(4), 871-888.
Saleem, A., Aslam, S., Yin, H. B., & Rao, C. (2020). Principal Leadership Styles and Teacher Job Performance: Viewpoint of Middle Management. Sustainability, 12(8), 3390.
Sawaeana, F. A. A., & Alib, K. A. M. (2020). The impact of entrepreneurial leadership and learning orientation on organizational performance of SMEs: The mediating role of innovation capacity. Management Science Letters, 10(2), 369–380.
Van der Hoek, M., Groeneveld, S., & Kuipers, B. (2018). Goal setting in teams: Goal clarity and team performance in the public sector. Review of public personnel administration, 38(4), 472-493.
Wandiri, L., Nyangau, S., & Ochieng, D. E. (2020). Effect of Financial Development Initiatives on Growth of Small and Medium Manufacturing Enterprises in Nairobi County, Kenya. African Development Finance Journal, 4(2), 62-78.
Zhang, K., & Zhu, X. (2019, December). Supervisor Developmental Feedback and Employee Job Performance: Chain Mediation of Emotional Intelligence and Feedback Seeking. In 2019 3rd International Conference on Education, Economics and Management Research (ICEEMR 2019) (pp. 93-96). Atlantis Press.
Zwikael, O., & Meredith, J. R. (2019). How Can Comprehensive Goal Setting Enhance Project Investment Decisions?. IEEE Transactions on Engineering Management.
Published
How to Cite
Issue
Section
Copyright (c) 2024 Lucy Atieno Ochieng, Jeremiah Koshal, Scott Bellows
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
