Abstract
The style and form of leadership is critical to the organization’s inclination and engagement in entrepreneurial activities and behaviour. This is as leadership styles offer either support and encouragement for entrepreneurial orientation or a stifling of innovativeness and pro-activeness through strict policies which emphasize conformity and unequivocal adherence to standards and norms. This paper is a critical review of leadership styles and their relationship with entrepreneurial orientation. The paper assessed five leadership styles – autocratic, democratic, laissez-faire, transactional and transformational leadership styles; and their impact on entrepreneurial orientation. The discourse revealed that the democratic and transformational leadership styles both share qualities and content which encourage and support entrepreneurial orientation characteristics such as aggressive competitiveness, innovativeness, pro-activeness, risk-taking and autonomy. The paper concluded that both leadership styles – democratic and transformational leadership style; evidently support and enhance organization’s capacity and tendency for entrepreneurial orientation. Keywords: Entrepreneurial orientation, leadership style, autocratic, lasses-faire, democratic, transactional, transformational. DOI : 10.7176/EJBM/11-8-11 Publication date :March 31 st 2019
Highlights
The capacity of the organization to satisfy its market and clients is primarily a function of its ability to identify the underlying satisfaction gaps inherent within its market. This ability emanates from the organization’s orientation towards entrepreneurial activities and behaviour such as innovativeness, risk-taking, pro-activeness and competitiveness. This view is shared by Baker and Sinkula (2009) who stated that entrepreneurial orientation goes beyond the routine functionality and transactions of the business to the practicalities of survival and sustained business performance
Leadership Styles and Entrepreneurial Orientation The previous sections of this study addressed the concepts of interest – leadership styles, and entrepreneurial orientation
The review revealed that all five identified dimensions or forms of leadership style all have certain qualities and features which may be of benefit to the organization, especially with regards to productivity and the quality of workplace relationships; it is the democratic and transformational forms of leadership that are most impactful and supportive of entrepreneurial orientation
Summary
The capacity of the organization to satisfy its market and clients is primarily a function of its ability to identify the underlying satisfaction gaps inherent within its market. Its focus involves the achievement of organizational goals and the transforming of involved or engaged parties through the content of the relationships, it is highly recommended by numerous studies (Bushra et al 2011; Aydin, Sarier, & Uysal, 2013) primarily because of the evidence of healthy workplaces, employee wellbeing, innovation and a high level of trust between co-workers and between the leader and followers in the organization.
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