Relationship between Servant Leadership and Subjective Well-Being: Evidence from Manufacturing and Services based SMEs in Pakistan

Abstract

Small and Medium- sized enterprises (SMEs) have emerged as building block for the growth of economies all around the globe. Pakistani SMEs are playing a similar role in the development of the country. However, in Pakistan, poor SME performance is due to a high failure rate of newly established firms. It has further been observed that leaders and employees- both, play a crucial role for the success of any firm. In SMEs the workers and leaders work in close contact. Therefore, the success of the SME is also dependent upon such Interpersonal factors. Moreover, today's new era has emerged as posing new challenges for the leaders. For instance, emotional encounters faced by workers has deviated the dimension of employee satisfaction towards subjective facets of life satisfaction. Hence, satisfaction through (provision of affection) through interpersonal contact has gained more importance for the existing workforce in the workplace. The affective dimension of subjective well-being (SWB) has turned out to be a viable solution for such emotional traumas like distress. Similarly, servant leadership (SL) being a new concept in leadership studies has emerged as an ultimate solution for provision of employee SWB. Therefore, this study has focused its attention towards the determination of relationships between SL and the affective dimension of SWB. This study has employed a quantitative methodology. Data were collected through a self-administered survey - questionnaire, which has been adapted from a previously- alidated survey. The target population consisted of SMEs operating in the province of Balochistan, Pakistan. Convenience sampling was applied to collect data from 304 employees of the SME sector. The study results indicate that there is a positive significant relationship among characteristics of SL (emotional healing, empowerment and conceptualization) and the affective dimension of SWB. The study findings suggest that in order to assure success, a positive emotional state of employees should be an important consideration for SME leaders.