Leadership in state-owned enterprises of the Maldives

Abstract

Leadership is often attributed to the successes and failures of different types of organisations existing in various contexts. The aim of this quantitative correlation study is to analyse the prevalent leadership styles in state-owned enterprises (SOE) of the Maldives and its relationship with the financial performance. Additionally, it looked at the possible contextual factors which could influence leadership styles of the SOEs. The study includes 10 SOEs from the Maldives and analyses their leadership style using the data collected from the managers of the SOEs using a Multifactor Leadership Questionnaire (MLQ) questionnaire. The contextual influence was analysed using Likert scale questions structured based on the Maldivian context and the existing literature. Financial performance was analysed by comparing return on capital employed (ROCE) of the SOEs, which was collected through the annual reports published by the enterprises. The findings of the study showed that transformational leadership style was common in the SOEs of the Maldives. It also highlighted a significant negative correlation with the contextual factors and transformational leadership style. Contrary to most existing literature, the study did not find any significant correlations with leadership style and financial performance. The findings of the study could be of help to the government in appointing leaders and in setting up regulations for the SOEs. The results of the study also suggest the need for further research to more confidently comment about the importance of leadership style in the SOE domain.