Influence of Supportive Leadership Style on Performance of Manufacturing Small and Medium Enterprises (SMEs) in Nairobi, Kenya

Abstract

This paper is based on a study that was conducted to examine the influence of supportive leadership style on organizational performance of manufacturing SMEs in Nairobi County, Kenya. Guided by the path goal leadership theory, the study employed use of a positivism research philosophy and descriptive correlational research design to determine the relationship between the two variables. The study targeted listed SME members of the Kenya Association of Manufacturers comprising 425 managers/owners of the organizations in Nairobi region. A sample size of 369 managers/owners was obtained from the population through stratified random sampling of the manufacturing SMEs. Data collection was done using self-administered questionnaires with a follow up analysis using both descriptive and inferential statistics. The descriptive statistics included mean, standard deviation, skewness and kurtosis while inferential statistics included Pearson’s correlation, chi-square and binary logistic regression. Binary logistic regression (Cox and Snell R squared) showed a 12 % probability of organizational performance being explained by adoption of supportive leadership style. The study indicated a significantly positive relationship between supportive leadership style and organizational performance (β= 4.114, p = .000, p < 0.05) rejecting the null hypothesis “Supportive leadership style does not influence organizational performance in manufacturing SMEs in Nairobi.” The study therefore concludes that supportive leadership style significantly influenced performance of manufacturing SMEs in Nairobi County. These findings provide a new understanding to the owners/managers of manufacturing SMEs on how supportive leadership impacts on organizational performance. Nonetheless, the study recommends further research in a wider context of SMEs in Kenya taking note of demographic features and the use of a longitudinal approach in conducting the study.