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Leadership styles in SMEs: a mixed-method approach

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Abstract

Despite the vast quantity of studies in the domain of leadership, very little work has been done on small and medium-sized enterprises (SMEs). Taking into account the relevance of this research topic, this paper aims to identify and understand leadership styles in SMEs. To reach this goal, a mixed-method approach was applied in three Portuguese SMEs (multiple case studies). Data were obtained from the Multifactor Leadership Questionnaire (MLQ), from SMEs’ collaborators and interviews with their owner-manager/leader. Descriptive and content analyses were used. The findings attested to the central role of leadership in SME management. Different levels of leadership results were identified in the SMEs selected. Thus, the findings give additional support to the argument that leadership plays an important role in management results in SMEs. The practical implications of findings are also discussed.

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Acknowledgments

This study was supported by a Research Unit (NECE), financed by the FCT – Science and Technology Foundation of Portugal. The authors thank the anonymous reviewers for their very helpful comments that contributed to the development of this paper.

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Authors and Affiliations

  1. Management and Economics Department, NECE–Research Center in Business Sciences, University of Beira Interior, Estrada do Sineiro, 6200-209, Covilhã, Portugal

    Mário Franco

  2. University of Beira Interior, Estrada do Sineiro, 6200-209, Covilhã, Portugal

    Pedro Gonçalo Matos

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Correspondence to Mário Franco.

Appendix

Appendix

Multifactor leadership questionnaire

Instructions: This questionnaire provides a description of your leadership style. Forty-five descriptive statements are listed below. Judge how frequently each statement fits you. The word “others” may mean your followers, clients or group members.

KEY:

0:

Not at all

1:

Once in a while

2:

Sometimes

3:

Fairly often

4:

Frequently, if not always

  

0

1

2

3

4

1

He gives help to others in exchange for their efforts

     

2

He examines situations critically asking if they are suitable

     

3

He does not interfere in problems until they become serious

     

4

He focuses attention on irregularities, mistakes, exceptions and deviations from expected standards

     

5

He avoids getting involved when important matters arise

     

6

He converses about his most important beliefs and values

     

7

He is absent when they need him

     

8

He looks for alternative ways to solve problems

     

9

He speaks optimistically about the future

     

10

Others are proud to be beside him

     

11

He discusses who is responsible for attaining specific performance goals

     

12

He waits for things to go wrong before beginning to act

     

13

He speaks enthusiastically about what must be carried out

     

14

He shows the importance of having a strong sense of obligation

     

15

He invests time in teaching and training

     

16

He makes it clear what each one can expect to receive when performance targets are reached

     

17

He shows he believes in “if it isn’t broken, don’t fix it”

     

18

He goes beyond his own interest in the group’s well-being

     

19

He treats others as people rather than treating them just as members of the group

     

20

He demonstrates that problems must become chronic before he acts

     

21

He acts in a way that achieves others’ respect

     

22

He devotes his whole attention to dealing with mistakes, complaints and failings

     

23

He considers the ethical and moral consequences of his decisions

     

24

He is always aware of all mistakes

     

25

He demonstrates a sense of power and confidence

     

26

He articulates a positive and motivating vision of the future

     

27

He directs his attention to failings so as to attain the expected standards

     

28

He avoids making decisions

     

29

He considers each person as having needs, skills and aspirations that are different from those of others

     

30

He gets others to look at problems from different angles

     

31

He helps others to develop their strengths

     

32

He suggests new alternatives, ways of carrying out and complementing activities

     

33

He takes a long time to respond to urgent matters

     

34

He emphasizes the importance of having a single mission direction

     

35

He expresses satisfaction when others correspond to his expectations

     

36

He expresses confidence in reaching targets

     

37

He is effective in dealing with others’ needs in relation to work

     

38

The leadership methods he uses are satisfactory

     

39

He gets others to do more than is expected

     

40

He is effective in representing his group at higher hierarchical levels

     

41

He works with others satisfactorily

     

42

He raises other people’s desire to obtain success

     

43

He is effective in dealing with the organization’s needs

     

44

He increases others’ will to work with greater dedication

     

45

He leads an efficient group

     

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Franco, M., Matos, P.G. Leadership styles in SMEs: a mixed-method approach. Int Entrep Manag J 11, 425–451 (2015). https://doi.org/10.1007/s11365-013-0283-2

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