Small and Medium Enterprises (SMEs) play an important role in the growth of national economy, driving economic development, and are widely recognized as the primary source of employment, poverty reduction, lifestyle improvement, and empowerment of low-income groups. However, notwithstanding their seeming importance, SMEs are plagued with myriads of challenges such as inadequate, inefficient, and at times non-functional infrastructure, which has led to poor market share. This study, therefore, investigated the effect of transactional leadership on market share of selected Small and Medium Enterprises (SMEs) in Lagos State, Nigeria. The study adopted survey research design. The population of the study was 8,395 which is the total number of registered SMEs in Lagos State, Nigeria. A sample size of 477 supervisors and middle level managers of SMEs were enumerated using Cochran’s (1977) formula. The study adopted stratified sampling technique. A structured, adapted and validated questionnaire was used to collect primary data from the respondents. Cronbach alpha reliability coefficient for all the constructs is greater than 0.7. Data were analyzed using both descriptive and inferential tools. Linear Regression Analysis was used to determine the effect of the variables using Statistical Package for Social Science (SPSS) version 25. The finding revealed that transactional leadership had a significant effect on market share (β = 0.599, t = 13.456, R2 = 0.287, p<0.05). The study concludes that there was a statistically significant effect of transactional leadership on market share of selected SMEs in Lagos State, Nigeria. Transactional leadership style is considered an important factor to SMEs survival and market share sustainability. It focuses on maintaining the status quo to increase company revenue and overall market share. Thus, SMEs owner/managers are encouraged to adopt the transactional leadership style, in order to achieve greater and sustainable market share. Keywords: Leadership style, Transactional Leadership, Market Share, Organizational performance, Small and Medium Enterprises.
Read full abstract