The influence of strategic leadership on the performance of small and medium-sized enterprises as mediated by strategy implementation
- Authors: January, Nceba
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434723 , vital:73099
- Description: Small and medium-sized enterprises (SMEs) are viewed as the cornerstone of socio-economic development in many economies globally. The progressive contribution of SMEs to the global economy is irrefutable and enshrined in poverty alleviation, inclusive economic growth, and job creation strategies pursued by many economies worldwide. SMEs are primarily the form of enterprise that accounts for over 90% of all businesses; thus, Small and Medium-sized Enterprises are the main source of employment. SMEs' contribution to value creation is estimated to be above 50% on average. In emerging countries, particularly South Africa, SMEs contribute approximately 45% of the total employment and 33% of the Gross Domestic Product (GDP). In most countries, Small and Medium-sized Enterprises contribute to more than 50% of employment and GDP, and these figures become significantly higher when the informal small business sector is included. World Bank estimated 600 million jobs needed by 2030, making SME development a high priority for many governments worldwide. Despite globally acknowledged SME contributions, small businesses are still faced with many challenges that have ramifications on their survival, growth, and performance. Studies highlighted challenges such as lack of access to finance and funding modalities, appropriate technology and infrastructure, markets and social networks, and lack of research and development, strategic management skills, and inability to perform managerial tasks, among others. Recent studies have been conducted on many of these challenges; however, there is little known about the strategic management challenges that face SMEs and their business performance. Several studies were conducted on some of these strategic management challenges, such as strategic planning, strategic orientation, strategic agility, organisational flexibility, and total quality management. However, a review of studies relevant to SMEs and their performance is silent on the argument regarding the influence of strategic leadership on the performance of SMEs, especially when key drivers of effective strategy implementation mediate strategic leadership. Thus, this study investigated the influence of strategic leadership on the performance of SMEs as mediated by strategy implementation in Nelson Mandela Bay (NMB). A detailed theoretical investigation was conducted on the nature and role of strategic leadership, strategy implementation, and business performance of SMEs. Strategic leadership represents the independent variables of this study, namely: strategic direction, balanced organisational controls, organisational culture, organisation’s resource portfolio, and ethical practice, followed by the mediating variable (strategy implementation) and the dependent variable (business performance). An empirical investigation was also conducted to test the significant influence between these variables. This study adopted a positivistic approach using a quantitative research method. The sample size of the study was 390 respondents. Self-developed and structured questionnaires were physically distributed to 315 SME owners and managers in NMB using a convenience sampling method. Only 229 returned questionnaires were suitable and relevant to this study; thus, a 72.69% response rate was achieved. Returned questionnaires were cleansed, coded, and transferred to a statistical data analysis software called Statistica, version 14.0, for quantitative data analyses. The validity and reliability of the measuring instrument were confirmed using Exploratory Factor Analysis and the calculation of Cronbach’s alpha coefficients. Descriptive statistics was calculated to summarise the empirical data on demographic variables and the main variables of this study. Pearson’s correlations were calculated to determine the correlations between the main variables of this study, and the results confirmed that there is a positive influence between strategic leadership, strategy implementation, and business performance of SMEs. A multiple linear regression analysis was conducted to test the significance of the influence between the main variables of the study. A regression analysis outcome revealed that some of the strategic leadership activities (strategic direction, balanced organisational controls, and organisational culture) have a statistically significant positive influence on the business performance of SMEs. Furthermore, a statistically significant positive influence does exist between strategy implementation and business performance of SMEs. This study’s recommendations were suggested to SME owners/managers. Firstly, to formulate and develop a clear long-term vision of the business for the next 3 to 5 years. Align resources to key areas of business operation and set internal controls that will help set standards of desired performance and ultimately achieve them. Secondly, to formulate and implement shared values that connect employees to the business purpose and the way it is conducted. These shared values must be underpinned by a unique, valuable, and incomparable culture against competitors to gain a competitive edge. Furthermore, consider using rewards to recognise employees who embody the shared values of the business and are committed to the success of the business because of its culture. Thirdly, ensure both strategic and financial controls support strategy implementation and guide employees to achieve performance objectives. Use balanced scorecards to assess the effectiveness of controls in the business and put corrective measures to address performance gaps. Last but not least, invest in staff development and training, technological infrastructure, and set sound processes and systems for the business operation, establish structures that have clear lines of reporting, authority, and delegation. , Thesis (MCom) -- Faculty of Commerce, Management, 2024
- Full Text:
- Date Issued: 2024-04-03
- Authors: January, Nceba
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434723 , vital:73099
- Description: Small and medium-sized enterprises (SMEs) are viewed as the cornerstone of socio-economic development in many economies globally. The progressive contribution of SMEs to the global economy is irrefutable and enshrined in poverty alleviation, inclusive economic growth, and job creation strategies pursued by many economies worldwide. SMEs are primarily the form of enterprise that accounts for over 90% of all businesses; thus, Small and Medium-sized Enterprises are the main source of employment. SMEs' contribution to value creation is estimated to be above 50% on average. In emerging countries, particularly South Africa, SMEs contribute approximately 45% of the total employment and 33% of the Gross Domestic Product (GDP). In most countries, Small and Medium-sized Enterprises contribute to more than 50% of employment and GDP, and these figures become significantly higher when the informal small business sector is included. World Bank estimated 600 million jobs needed by 2030, making SME development a high priority for many governments worldwide. Despite globally acknowledged SME contributions, small businesses are still faced with many challenges that have ramifications on their survival, growth, and performance. Studies highlighted challenges such as lack of access to finance and funding modalities, appropriate technology and infrastructure, markets and social networks, and lack of research and development, strategic management skills, and inability to perform managerial tasks, among others. Recent studies have been conducted on many of these challenges; however, there is little known about the strategic management challenges that face SMEs and their business performance. Several studies were conducted on some of these strategic management challenges, such as strategic planning, strategic orientation, strategic agility, organisational flexibility, and total quality management. However, a review of studies relevant to SMEs and their performance is silent on the argument regarding the influence of strategic leadership on the performance of SMEs, especially when key drivers of effective strategy implementation mediate strategic leadership. Thus, this study investigated the influence of strategic leadership on the performance of SMEs as mediated by strategy implementation in Nelson Mandela Bay (NMB). A detailed theoretical investigation was conducted on the nature and role of strategic leadership, strategy implementation, and business performance of SMEs. Strategic leadership represents the independent variables of this study, namely: strategic direction, balanced organisational controls, organisational culture, organisation’s resource portfolio, and ethical practice, followed by the mediating variable (strategy implementation) and the dependent variable (business performance). An empirical investigation was also conducted to test the significant influence between these variables. This study adopted a positivistic approach using a quantitative research method. The sample size of the study was 390 respondents. Self-developed and structured questionnaires were physically distributed to 315 SME owners and managers in NMB using a convenience sampling method. Only 229 returned questionnaires were suitable and relevant to this study; thus, a 72.69% response rate was achieved. Returned questionnaires were cleansed, coded, and transferred to a statistical data analysis software called Statistica, version 14.0, for quantitative data analyses. The validity and reliability of the measuring instrument were confirmed using Exploratory Factor Analysis and the calculation of Cronbach’s alpha coefficients. Descriptive statistics was calculated to summarise the empirical data on demographic variables and the main variables of this study. Pearson’s correlations were calculated to determine the correlations between the main variables of this study, and the results confirmed that there is a positive influence between strategic leadership, strategy implementation, and business performance of SMEs. A multiple linear regression analysis was conducted to test the significance of the influence between the main variables of the study. A regression analysis outcome revealed that some of the strategic leadership activities (strategic direction, balanced organisational controls, and organisational culture) have a statistically significant positive influence on the business performance of SMEs. Furthermore, a statistically significant positive influence does exist between strategy implementation and business performance of SMEs. This study’s recommendations were suggested to SME owners/managers. Firstly, to formulate and develop a clear long-term vision of the business for the next 3 to 5 years. Align resources to key areas of business operation and set internal controls that will help set standards of desired performance and ultimately achieve them. Secondly, to formulate and implement shared values that connect employees to the business purpose and the way it is conducted. These shared values must be underpinned by a unique, valuable, and incomparable culture against competitors to gain a competitive edge. Furthermore, consider using rewards to recognise employees who embody the shared values of the business and are committed to the success of the business because of its culture. Thirdly, ensure both strategic and financial controls support strategy implementation and guide employees to achieve performance objectives. Use balanced scorecards to assess the effectiveness of controls in the business and put corrective measures to address performance gaps. Last but not least, invest in staff development and training, technological infrastructure, and set sound processes and systems for the business operation, establish structures that have clear lines of reporting, authority, and delegation. , Thesis (MCom) -- Faculty of Commerce, Management, 2024
- Full Text:
- Date Issued: 2024-04-03
The relationship between leadership and employee engagement in an automotive original equipment manufacturer in South Africa
- Authors: Slater, Bronwyn Lereen
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434756 , vital:73102
- Description: The manufacturing industry is one of the greatest contributors to the South African economy. Owing to a competitive and complex automotive climate, it is suggested that only a few automotive manufacturing organisations will remain viable in the coming years, without the optimal reliance on human capital resources to navigate an unpredictable and unfolding landscape. In securing a sustainable future, the engagement of these human capital resources is necessitated. This competitive landscape has resulted in the call for adaptive and flexible leadership. Leadership behaviour is categorised into three streams, namely, transformational leadership, transactional leadership, and non-leadership, which is referred to as laissez-faire leadership. Employee engagement is defined as the extent to which an employee is committed to, and involved in, their operational function and the organisation, whilst portraying a willingness to perform and contribute beyond that which is expected of them. The purpose of this research was to explore the relationship between leadership and employee engagement in an Original Equipment Manufacturer (OEM) in South Africa. This OEM operates in the Eastern Cape and Gauteng Provinces of South Africa. Globally, the OEM launched a leadership journey to facilitate a shared value system that supported a vision towards organisational success, by focusing on transformed ways of working and acting, as a global collective team. The outcome of this desired journey yielded eight Leadership Principles. These Leadership Principles are referred to, and included in the research study, to gain a more robust internal perspective of the leadership behaviours that are most advocated within the OEM, in relation to employee engagement. The objective of this research therefore was to establish the relationship between leadership and employee engagement in the respective OEM, by investigating the impact of transformational leadership and transactional leadership on employee engagement. A triangulation approach was adopted to analyse the data, using a combination of qualitative and quantitative research methodologies. The result when testing the reliability coefficient scores of the leadership instrument described a poor measure for transactional leadership, and a good measure for transformational leadership. Therefore, the results that stemmed from the statistical analysis in relation to transactional leadership could not be trusted. However, in the context of this research, it was found that there is a statistically significant relationship between transformational leadership and employee engagement. Whilst utilising the qualitative research methodology, it was found that there is a limited definition-based relationship between transactional leadership and the eight Leadership Principles. However, there is a definition-based relationship between the Leadership Principles and transformational leadership, owing to similarities found in the definition descriptions between at least six of the eight Leadership Principles. In the investigation of whether there is a definition-based relationship between the Leadership Principles and employee engagement, it was found that a limited definition-based relationship between the eight Leadership Principles and engagement existed. The research therefore met its objectives in determining a relationship between leadership and employee engagement in an Original Equipment Manufacturer in South Africa. , Thesis (MCom) -- Faculty of Commerce, Management, 2024
- Full Text:
- Date Issued: 2024-04-03
- Authors: Slater, Bronwyn Lereen
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434756 , vital:73102
- Description: The manufacturing industry is one of the greatest contributors to the South African economy. Owing to a competitive and complex automotive climate, it is suggested that only a few automotive manufacturing organisations will remain viable in the coming years, without the optimal reliance on human capital resources to navigate an unpredictable and unfolding landscape. In securing a sustainable future, the engagement of these human capital resources is necessitated. This competitive landscape has resulted in the call for adaptive and flexible leadership. Leadership behaviour is categorised into three streams, namely, transformational leadership, transactional leadership, and non-leadership, which is referred to as laissez-faire leadership. Employee engagement is defined as the extent to which an employee is committed to, and involved in, their operational function and the organisation, whilst portraying a willingness to perform and contribute beyond that which is expected of them. The purpose of this research was to explore the relationship between leadership and employee engagement in an Original Equipment Manufacturer (OEM) in South Africa. This OEM operates in the Eastern Cape and Gauteng Provinces of South Africa. Globally, the OEM launched a leadership journey to facilitate a shared value system that supported a vision towards organisational success, by focusing on transformed ways of working and acting, as a global collective team. The outcome of this desired journey yielded eight Leadership Principles. These Leadership Principles are referred to, and included in the research study, to gain a more robust internal perspective of the leadership behaviours that are most advocated within the OEM, in relation to employee engagement. The objective of this research therefore was to establish the relationship between leadership and employee engagement in the respective OEM, by investigating the impact of transformational leadership and transactional leadership on employee engagement. A triangulation approach was adopted to analyse the data, using a combination of qualitative and quantitative research methodologies. The result when testing the reliability coefficient scores of the leadership instrument described a poor measure for transactional leadership, and a good measure for transformational leadership. Therefore, the results that stemmed from the statistical analysis in relation to transactional leadership could not be trusted. However, in the context of this research, it was found that there is a statistically significant relationship between transformational leadership and employee engagement. Whilst utilising the qualitative research methodology, it was found that there is a limited definition-based relationship between transactional leadership and the eight Leadership Principles. However, there is a definition-based relationship between the Leadership Principles and transformational leadership, owing to similarities found in the definition descriptions between at least six of the eight Leadership Principles. In the investigation of whether there is a definition-based relationship between the Leadership Principles and employee engagement, it was found that a limited definition-based relationship between the eight Leadership Principles and engagement existed. The research therefore met its objectives in determining a relationship between leadership and employee engagement in an Original Equipment Manufacturer in South Africa. , Thesis (MCom) -- Faculty of Commerce, Management, 2024
- Full Text:
- Date Issued: 2024-04-03
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