The Influence of Leadership Styles and Organizational Culture on Organizational Performance of Some Selected SMEs in Accra, Ghana

Abstract

The study examined the influence of leadership styles and organizational culture on organizational performance and the mediating role of organizational culture on the influence of the leadership styles on organizational performance among Ghanaian SME firms in Accra. It also sought to establish the influence of the various leadership styles and the various dimensions of corporate culture on firm performance. One hundred and forty-five (141) respondents were conveniently sampled from selected SMEs in the manufacturing, telecommunication and financial sectors in Ghana for the study. All selected participants completed the multifactor leadership questionnaire (MLQ) and organizational culture survey (OCS). The data gathered was analyzed using standard multiple regression analysis and Andy F. Hayes’ Process macro procedure in SPSS. The results revealed that, leadership styles did not influence organizational performance in SMEs in Accra Ghana; on the other hand, organizational culture did influence organizational performance. Transformational leadership style was also the only significant influence on organizational performance among all three leadership styles understudy. Moreover, none of the dimensions of corporate culture influenced organizational performance significantly, whereas organizational culture failed to play a mediating role in the influence of the perceived leadership styles on firm performance