The relationship between leadership style and company performance : a study of South African non-listed companies

Jogunola, Kazeem (2013-03)

Thesis (MBA)--Stellenbosch University, 2013.


ENGLISH ABSTRACT: The discussions on leadership and strategy have attracted considerable interest from academics on one hand and business practitioners on the other. Much of the interest lies in claims that both leadership and strategy are linked to business performance. This research report examines the nature of the relationship between different leadership styles and organisation performance. The research study hypothesised that either authoritative leadership style leads to achievement of the business strategic plan (hypothesis 1) or that participative leadership style leads to achievement of the business strategic plan (hypothesis 2). The research was a quantitative study; data was collected by means of interviews and telephone questionnaires which were administered on 38 randomly selected business owners and senior managers. A linear regression method was used to test the hypothesis. The regression analyses revealed that participative leadership style and performance and authoritative leadership style are not related. These two variables each explain less than one per cent of the variance in performance. As a result, both null hypotheses were not rejected. This research concludes with a number of implications for further research studies. Stellenbosch University

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