Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

A Study on The Relationship of Leadership Styles on Employees’ Job Performance in SMES in Klang Valley, Malaysia

Sarina Mohamad Nor, Khee Yoke May, Yeng Lay Yen, Jessellyne Vionna Binijin

http://dx.doi.org/10.6007/IJARBSS/v14-i3/20450

Open access

The study focused on transformational, visionary, and coaching leadership styles, assessing their effects on worker commitment, job satisfaction, and productivity in the SMEs industries of Klang Valley, Malaysia. The study's goal is to look into the connections between transformational, visionary, and coaching leadership styles and employee job performance. To acquire thorough data, a quantitative survey was undertaken, targeting 437 employees from various SMEs in the Klang Valley. SPSS V.29 was used for inferential and descriptive statistics, including pearson correlation analysis and multiple regression. The findings revealed strong somewhat positive associations between transformational, visionary, and coaching leadership styles and employee job performance. The study's findings have important consequences for Malaysia's small and medium-sized enterprises (SMEs). They provide significant insights for leaders and managers on effective approaches for improving employee performance levels. Furthermore, the findings of this research can help policymakers and government agencies develop targeted policies and programmes to improve the leadership practices of SMEs. This, in turn, would increase their production and competitiveness. In conclusion, the value of this study lay in its ability to advance knowledge of the relationship between leadership styles and job performance in Malaysian SMEs and to drive the development of successful strategies to improve SMEs' performance and support the national economy.

Amegayibor, G. K. (2021). Leadership styles and employees' performance: A case of family-owned manufacturing company, Cape Coast. International Journal of Financial, Accounting, and Management, 3(2), 149-164.
doi:https://doi.org/10.35912/ijfam.v3i2.624
Eliyana, A., Ma’arif, S., & Muzakki. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144 - 150. doi:https://doi.org/10.1016/j.iedeen.2019.05.001.
Berg, M. E., & Karlsen, J. T. (2020, 01). Coaching leadership style: A learning process. International Journal of Knowledge and Learning, 13, 356. doi:10.1504/IJKL.2020.10033158
Bernard, M. B., & Avolio, B. J. (1993). Transformational leadership: A response to critiques. 49 - 80.
Chua, J., Basit, A., & Hassan, Z. (2018). Leadership Style and Its Impact on Employee Performance. doi:10.24924/ijabm/2018.04/v6.iss1.80.94
Class, M. (2022). What Is Visionary Leadership? Retrieved from MASTERCLASS: https://www.masterclass.com/articles/visionary-leadership#7qE8WpSWLNMChRpbODdL4v
Contributors, W. (2023). Retrieved from Wikipedia, The Free Encyclopedia.: https://en.wikipedia.org/w/index.php?title=Klang_Valley&oldid=1147592201
Karwan, De. H., Hariri, H., & Ridwan, R. (2021). Visionary Leadership: What, Why, and How. doi:http://dx.doi.org/10.4108/eai.16-10-2020.2305217
Sita, D., Sharon, & Nor, M. N. (2021). A Systematic Review on Leadership Styles in Small and Medium Enterprises. Global Conference on Business and Social Sciences Proceeding, 12, 26 - 26. doi:10.35609/gcbssproceeding.2021.12(26)
Editorial, B. T. (2022). SME’s Set To Spearhead The Malaysian Economy. Retrieved from BusinessToday: https://www.businesstoday.com.my/2022/07/06/smes-set-to-spearhead-the-malaysian-economy/
Yi, F. L., Chuan, H. T., Yu Chin, L., & Chen, C. L. (2020). Transformational Leadership and Job Performance: The Mediating Role of Work Engagement.
doi:https://doi.org/10.1177/2158244019899085
Hayati, N. (2020). The Influence of Visionary Leadership, Talent Management, Employee Engagement, And Employee Motivation to Job Satisfaction and Its Implications for Employee Performance All Divisions of Bank Bjb Head Office. International Journal of Scientific & Technology Research, 9(03), 528 - 533.
Johnson, A., & Smith, J. (2021). The Influence of Visionary Leadership Style on Employee Job Performance: A Case Study in Klang Valley. International Journal of Management Studies, 39(2), 78-92.
Karwan, D., Hariri, Hasan, & Ridwan, R. (2021). Visionary Leadership: What, Why, and How. doi:10.4108/eai.16-10-2020.2305217
Habtamu, K., & Hayru, K. (2022). The Influence of Leadership Styles on Micro and Small Enterprises’ Performance: The Case of Worabie Town, Siltie Zone. SSRN. doi:http://dx.doi.org/10.2139/ssrn.4196340
Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size For Research. Educational And Psychological Measurement, 30, 607 - 610. Retrieved from EDUCATIONAL AND PSYCHOLOGICAL MEASUREMENT.
LeSourd, & Sandra J. (1990). Validation of A Visionary Leadership Attitude Instrument Using Factor Analysis. 18.
Miharja, Rediawan, & Hayati, Neneng. (2021). The Importance of Visionary Leadership and Talent Management to Improve the Employee Performance. HOLISTICA – Journal of Business and Public Administration, 12, 93 - 101. doi:10.2478/hjbpa-2021-0016
Milner J., McCarthy G., & Milner T. (2018). Training for the coaching leader: how organizations can support managers. J. Manag. Dev., 37, 188–200. doi:10.1108/jmd-04-2017-0135
Needle, D. (2021). Transformational Leadership. Retrieved from Tech Target: https://www.techtarget.com/searchcio/definition/transformational-leadership
Novianti, K. R. (2019, 04). Achieving Competitive Advantage through Knowledge Management Practices: Knowledge-Based View (KBV) Strategy on Indonesia Electricity Sector. APMBA (Asia Pacific Management and Business Application), 7, 163-176.
doi:10.21776/ub.apmba.2019.007.03.3
Novitasari, D., Goestjahjanti, F., & Asbari, M. (2022). The Role of Readiness to Change between Transformational Leadership and Performance: Evidence from a Hospital during Covid-19 Pandemic. APMBA (Asia Pacific Management and Business Application, 9, 37--56. Retrieved from
https://apmba.ub.ac.id/index.php/apmba/article/view/378
Peláez, M. J. (2019). A Journey into the Heart of Coaching-based Leadership: Empirical Findings within the Organizational Context. Universitat Jaume I, 25. Retrieved from https://www.tdx.cat/bitstream/handle/10803/668554/2020_Tesis_Pelaez_Josefina.pdf;jsessionid=4CDA30F1BB0EFF79B47B1AA008FC919B?sequence=1
Rana, S. (2022). Leadership Styles and Job Satisfaction. Centria University Of Applied Sciences, 33. Retrieved from
https://www.theseus.fi/bitstream/handle/10024/751956/Rana_Samita.pdf?sequence=2&isAllowed=y
Rupprecht, E. (2022). The Contribution of Transformational Leadership in Developing Intrinsic Motivation and Creativity of Employees. 63. Vienna, Vienna, Vienna. Retrieved from https://www.modul.ac.at/uploads/files/Theses/Bachelor/Undergrad_2022/BSC_2022/11703691_RUPPRECHT_Eleonore_BSc_Thesis_-_Copy.pdf
SME Corporation Malaysia - MSME Statistics. (2021). Retrieved from SME Corporation Malaysia: https://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-statistics
Tran, C.-M., & Paul Idodo. (2022). Effects of transformational leadership and employee work environment. Employee work performance during the COVID-19 pandemic. Karlskrona, Karlskrona, Sweden. Retrieved from https://www.diva-portal.org/smash/get/diva2:1640853/FULLTEXT01.pdf
Ugochukwu, C. (2023). Transformational Leadership Theory : How To Inspire And Motivate. Retrieved from simplypsychology: https://www.simplypsychology.org/what-is-transformational-leadership.html

(Nor et al., 2024)
Nor, S. M., May, K. Y., Yen, Y. L., & Binijin, J. V. (2024). A Study on The Relationship of Leadership Styles on Employees’ Job Performance in SMES in Klang Valley, Malaysia. International Journal of Academic Research in Business and Social Sciences, 14(3), 1–14.