Small Business Leaders' Strategies To Improve Organizational Performance

Small Business Leaders' Strategies To Improve

Organizational Performance

Section 1: Foundation of the Project

INTRODUCTION

Effective decision-making and adaptive leadership prevent small

businesses from closing within 5 years from the start of operation (Quansah

& Hartz, 2021). Small business leaders are always seeking to improve

organizational performance and preventing loss of profit. Rafiki et al. (2022)

found that poor leadership explains the failure of small businesses. There are

numerous factors that contribute to small businesses failing, and leaders who

create strategies decide whether they will survive (Engelbrecht & Samuel,

2019; Knezović & Drkić, 2020; Lee & Ding, 2020; MañasRodríguez et al.,

2020). The focus of this study was the leadership strategies implemented by

small business leaders that improved their organizational performance.

Background of the Problem

An effective leadership style is a critical component to an

organization’s performance. If the organization’s leader lacks leadership

abilities, the organization will not function efficiently (Razak et al., 2022).

Approximately 20% of new small businesses fail within the first 2 years of

operation, 45% do so within the first 5 years, and 65% do so within the first

10 years (U.S. Bureau of Labor Statistics, 2022). Only 25% of small

businesses created will continue to be in business after 15 years (U.S.

Bureau of Labor Statistics, 2022). Small business performance and

sustainability are influenced by leadership styles (Kowo & Akinbola, 2019).

Kowo and Akinbola (2019) argued that a small business owner’s leadership

style affects how people act in order to achieve the goals of the business.

Understanding effective leadership styles is an important area of

interest for leaders especially those attempting to comprehend and imitate

what makes an individual a “great leader” (Price-Dowd, 2020).

Consequently, researchers have conducted studies to examine the many

influences of different leadership strategies and their effect on

organizational performance (Engelbrecht & Samuel, 2019; Knezović &

Drkić, 2020; Lee & Ding, 2020; Mañas-Rodríguez et al., 2020).

Business Problem Focus and Project Purpose

The specific business problem was that small business leaders lacked

leadership strategies to improve their organizational performance. Therefore,

the purpose of this qualitative pragmatic inquiry was to explore leadership

strategies small business leaders use to improve organizational performance.

The targeted population was six purposively sampled small business leaders

in Central Illinois who had successfully implemented leadership strategies

that improved their organizational performance.

I obtained access to the project participants by visiting the area

Chamber of Commerce and requesting their small business directory. The

small business public directory lists several small businesses in Central

Illinois and includes business names, addresses, date of existence, business

owner names, and phone numbers. I used the public information from the

directory to reach each small business owner via the phone to share brief

details regarding this study and check their eligibility for taking part in the

study. If they expressed interest and met the inclusion criteria, I obtained

their email address to send them an invitation to participate in the study. The

data sources were each participant’s interview responses as well as a review

of each participant’s company’s public website and other public documents,

such as financial reports, press releases, and figures. The conceptual

framework for this pragmatic inquiry was grounded in Burns’s

(1978) transformational leadership theory.

Research Question

The research question guiding the study was: What leadership

strategies do small business leaders use to improve their organizational

performance?

Assumptions and Limitations

Assumptions

For this study, I made two assumptions. Assumptions are facts that are

assumed to be true, actual, or certain without justification or demonstration

(Armstrong & Kepler, 2018). The first assumption was that participants

would provide truthful responses. The rationale for this assumption was that

I would guarantee their confidentiality. Additionally, I did not ask any

socially embarrassing questions or any questions regarding their trade

secrets. My second assumption was that the participants would have the

knowledge necessary to answer the interview questions. This was a

reasonable assumption because the participants had the background and

experience necessary to take part in this research study.

Limitations

Limitations are seen by researchers as flaws that are beyond their

control and could potentially influence the outcomes of the study (Nelson,

2016). I identified one limitation to this research study. The limitation was

that the strategies developed by the participants of this study would be

unique to their businesses and may not be transferrable to other small

businesses.

Transition

In Section 1, I described the background of the problem, business

problem focus and project purpose, research question, and assumptions and

limitations. In Section 2, the literature review and its application to the

applied business problem will be discussed. In Section 3, I will describe the

ethics that guided the project ethics; nature of the project; population,

sampling, and participants; and data collection activities. Additionally, the

interview questions, data organization and analysis techniques, and

reliability and validity, will be explained before the section is concluded

with a transition and summary. In Section 4, I will present the findings,

business contributions and recommendations for professional practice,

implications for social change, my recommendations for further research,

and a conclusion.

Section 2: The Literature Review

A Review of the Professional and Academic Literature

This literature review contains a critical analysis of professional and

academic literature from peer-reviewed journals, seminal books, and a

government source, with an emphasis on transformational leadership in the

context of increasing organizational performance through effective

leadership stratagems. In support of transformational leadership theory is an

expansive description of transformational leadership along with current

literature, supporting theories, and explanations of how they complement

and reinforce transformational leadership theory. The supporting theories

include servant leadership, adaptive leadership, entrepreneurial leadership,

strategic leadership, evolutionary leadership, benevolent leadership, and

spiritual leadership. In contrast to the transformational leadership theory, I

provide expansive descriptions of how transactional and autocratic

leadership styles differ from transformational leadership. This literature

review also comprises research studies that used transformational leadership

and other supporting and contrasting theories of transformational leadership

to identify their relevancy to organizational performance. I conclude the

review with a discussion of studies conducted on the comparative impact of

transformational leadership and its impact on organizational performance.

My strategy for searching for academic literature was a cyclical four-

step process. The first step was to identify the main concepts of the study,

which were leadership strategies, organizational outcomes, and small

businesses. The second step was choosing the library to search. I searched

the following databases and search engines that were accessed through the

Walden University Library: Google Scholar, Emerald Insight,Academic

Search Complete, Business Sources Complete, ABI/Inform Complete, and

ProQuest. These databases contained empirical and theoretical research

articles from peer-reviewed journals and important concepts from academic

books. The third step was conducting the actual search using keywords and

phrases. These keywords included leadership strategy, leadership style,

transformational leadership, servant leadership theory, charismatic

leadership, emotional leadership, transactional leadership, organizational

performance, and small business. The last step was to review and refine the

search results by rethinking keyword combinations. In this study, I included

references to 112 articles, eight books, and one government literature source.

Of the 112 articles, 104 (i.e., 93%) were peer reviewed, and 106 articles (i.e.,

95%) were published between 2018 and 2023.

Application to the Applied Business Problem

The purpose of this qualitative pragmatic inquiry was to explore leadership

strategies small business leaders use to improve organizational performance.

When small business owners implement leadership strategies, they gain

access to opportunities for enhancing their organizational performance. All

leadership strategies affect employees and the operations of small businesses

(Garcia & Russo, 2019). The rates of small business failure are 20% within

the first 2 years of operation, 45% within the first 5 years, and 65% within

the first 10 years (U.S. Bureau of Labor Statistics, 2022). Only 25% of small

businesses will continue to be in business after 15 years (U.S. Bureau of

Labor Statistics, 2022).

Conceptual Framework

In this section, I provide an expansive description of transformational

leadership along with current literature. Complementary theories are also

described, including an explanation of how they are similar to the

transformational leadership theory through a comparison of their key

constructs. Additional research studies are discussed to provide empirical

evidence and real-world examples demonstrating the effectiveness and

impact of transformational leadership in improving organizational

performance.

Transformational Leadership and Organizational Performance in Small

Businesses

Transformational leadership can directly and indirectly impact the

performance of small businesses through mediating and moderating factors.

Several studies have investigated its multifaceted influence on organizational

outcomes. In an evaluation of a 2-day leadership program meant to

determine the impact of improved communication on transformational

leadership behaviors, Cohrs et al. (2019) reported several findings, including

that (a) transformational leadership influences organizational performance

through communication; (b) communication mediated the positive impact of

transformational leadership on organizational performance; (c)

communication skills improve transformational leadership behaviors,

including the clear articulation of a vision for the business, expression of

expectation, and individual engagement with employees; (d) employee

alignment with the concept, pursuit of expectations, and employment

contribute to organizational performance, and (e) communication training

enhanced leaders’ ability to apply transformational leadership toward

improving organizational outcomes.

Manzoor et al. (2019) examined the effect of transformational

leadership on the job and organizational performance of employees of small

and medium firms in Pakistan, and their results demonstrated a robust

positive impact of transformational leadership on organizational

performance. They found that a positive mediator is corporate social

responsibility or alleviating the quality of life of employees’ communities

and the organization’s commitment to ethical operations among small and

medium firms in Pakistan. Corporate social responsibility elevates

employees’ work satisfaction to enhance the positive impact of

transformational leadership on organizational performance.

Idris et al. (2022) examined the effect of transformational leadership,

organizational culture, and motivation on employee performance in real

estate businesses in Indonesia. They reported the positive and significant

impact of transformational leadership on organizational culture, work

motivation, and employee performance, finding that organizational culture

had an insignificant impact on work motivation and employee performance,

and work motivation had an insignificant influence on employee

performance. Transformational leadership was shown to have both a direct

and indirect impact on employee performance through work motivation.

Transformational leadership also affects organizational performance

through motivation. Gilbert and Kelloway (2018) examined the impact of

the motivation of a transformational leader on subordinates’ perceptions

of the leader’s behavior through a survey of 179 subordinates in two

firms. Gilbert and Kelloway reported that a transformational leader’s

motivation was associated with subordinates’ motivation through a

positive perception of the leader’s active-constructive behavior. In

examining the impact of transformational leadership on the employee

work outcomes of performance and burnout and the workplace behavior

of social loafing among telecommunication workers in Pakistan, Khan et

al. (2020) found a significant positive association between

transformational leadership and work performance through intrinsic

motivation. However, they also discovered that transformational

leadership had an indirect and insignificant association with work burnout

and social loafing.

Impact of Transformational Leadership on Organizational Performance

Leadership Style Synergy and Organizational Performance

Transformational leadership impacts organizational outcomes

differently in comparison to other leadership styles. In an investigation of

manufacturing firms in the United States that compared the influence of

transformational and transactional leadership on innovation, McCann and

Sparks (2019) found that internal and external locus of control moderated

the positive effect of both transformational and transactional leadership on

innovative work behavior. However, Mkheimer (2018) examined the impact

of transactional, transformational, and charismatic leadership styles on the

organizational outcomes of businesses in Amman, Jordan, and found that

none of the three leadership styles significantly influenced business success.

The researcher attributed the lack of significant impact of the leadership

styles on organizational success to the improper or ineffective

implementation of the leadership styles that prevented employee

engagement, innovation, and creativity. Proper and practical application of

leadership styles should provide a better determination of the association

between leadership styles and business success.

Comparative Analysis of Leadership Styles Across Contexts

In comparison to other leadership styles, transformational leadership

has a lesser impact on the organizational outcomes of smaller businesses.

Amegayibor (2021) compared the effect of transformational, autocratic,

charismatic, paternalistic, and visionary leadership styles on employee

performance in small, family-run manufacturing firms in Ghana and found

that only authoritarian, charismatic, and paternalistic leadership styles

reduced errors to elevate employee performance significantly. In a case

study of leadership styles in a Nigerian firm, Olayisade and Awolusi (2021)

found that autocratic leadership was the dominant leadership style in small

businesses, followed by laissezfaire, bureaucratic, transactional, democratic,

and charismatic leadership. The researchers explained the dominance of

authoritarian leadership as cultural. Le et al. (2021) investigated the

leadership styles of small and medium firms in Vietnam, reporting that most

firms adopted autocratic leadership because of the small scale of operations,

low employee competence, and a hierarchical set up. Only a small number of

managers in their study expressed support for democratic leadership because

of the inability of autocratic leadership to accommodate complex work

relations and facilitate a more comfortable work atmosphere. Due to cultural

norms and practicality, transformational leadership did not significantly

impact these cases.

However, transformational leadership can result in better

organizational outcomes in small businesses compared to transactional

leadership. In examining the link between leadership style and the varying

levels of success of national franchises. Cary (2020) showed that various

small franchisees adopted different leadership styles, which had varying

impacts on success; however, transformational leadership better predicted

franchisee success in the United States. The transformational leadership

approach facilitated small business success through leader and employee

satisfaction and can also deliver better organizational performance when

integrated with other leadership approaches. Mahmood et al. (2020)

investigated the impact of various leadership styles on business performance

within a Eurasian context and reported several findings. Among firms in

Kazakhstan, combining transformational, transactional, and paternalistic

leadership has the most significant impact on organizational performance.

Due to clan culture’s moderating effect, transactional leadership combined

with paternalistic leadership was used every day among Kazakhstan firms.

Paudel (2020) examined the relationship between leadership styles and

business performance with entrepreneurial orientation as a moderating

variable among small and medium firms in Nepal and showed several

findings. Transformational leadership, transactional leadership, and

entrepreneurial direction can profoundly affect organizational performance

and small businesses' success. Combining transformational leadership with

entrepreneurial orientation leads to better business performance by

facilitating improvements in workplace relations and business operations.

Organizational Citizenship and Leadership Styles

Al-Ahmadi et al. (2020b) examined the relationship between

leadership style and organizational citizenship with the moderating role of

emotional intelligence among employees of small and medium firms in

Ghana. Abdullahi et al. (2020) found that democratic and transformational

leadership styles positively predicted organizational citizenship; however,

transformational leadership had a more substantial impact on the two

leadership styles. Integrating democratic and transformational leadership

meant reaping the benefits of result- and people-focused leadership practices

that supported more robust organizational citizenship among employees.

Jiatong et al. (2022) compared the impact of transformational

leadership and other leadership styles on organizational performance. They

showed that transformational leadership can have a similar result, a weaker

effect, a better influence, or a more substantial impact when combined with

other leadership styles depending on culture, country, and industry contexts.

There was a gap in the research gap regarding the effects of transformational

leadership, on its own or together with other leadership strategies and styles,

on business performance in different cultural, country, or industry contexts,

especially in the United States. I contributed to filling this research gap by

examining the role of transformational leadership and other leadership

strategies on organizational performance in small businesses in Central

Illinois.

Efficiency and Sustainability Through Transformational Leadership

Transformational leadership plays a crucial role in driving efficiency

in businesses. Burawat (2019) examined the nexus between

transformational leadership and sustainability performance among

Thailand’s small and medium manufacturing firms, revealing that such

leadership promotes efficiency through lean manufacturing strategies. Jain

and Duggal (2018) highlighted how transformational leadership, job

autonomy, and emotional intelligence affect organizational commitment

among technology firms in India. Several studies, including those by Al-

Ahmadi and Kasztelnik (2021a, 2021b), have emphasized the relationship

between transformational leadership and job satisfaction in small

businesses. These studies have consistently shown that transformational

leadership fosters teamwork and a positive work environment, improving

job satisfaction and organizational performance.

In a qualitative multicase study to examine the leadership strategies

employed by three owners of successful small and medium businesses or

firms that have been operating for at least 5 years in Georgia, Jackson (2021)

found that transformational leadership ensures the alignment of employee

and business goals, thus ensuring sustainability in small business.

Transformational leaders of small firms focus on employee training to

enhance performance, strategic planning to improve efficiency, and making

the business relatable to the industry to ensure sustainability.

Transformational leadership lets owners gain the information, experience,

and resources to make sound judgments about business changes and

opportunities, and this leadership style also helped align employee goals

with the business goals of small business owners.

Transformational Leadership and Innovation

Transformational leadership's impact on innovation and performance

has been a focal point in many studies. Garhy et al. (2019) found that while

transformational leadership does not directly influence creation, it indirectly

impacts performance through fostering an innovative culture.

Transformational leadership propels innovative efficiency methods. Through

examining Thailand's small and medium manufacturing firms,

Burawat (2019) found that transformational leadership steered adopting a

lean manufacturing strategy. This innovative strategy aimed at quality

products with minimal waste, notably among automotive firms. Although

lean manufacturing advanced sustainability leadership for automotive

businesses, there's a need to adopt this innovative approach for

nonautomotive sectors. Transformational leadership also embraces

innovation and thus adjusts to job roles with the moderating role of

emotional intelligence. Jain and Duggal (2018) investigated the mediating

effect of job autonomy in the link between transformational leadership and

organizational commitment. According to their findings, transformational

leadership positively affects organizational commitment through innovative

job roles, thus enhancing the organizational performance of the small

businesses technology sector.

Transformational leadership indirectly influences performance by

moderating the role of an innovative culture among small and medium firms.

In examining the influence of transformational leadership on innovation and

creative performance among small and medium firms in Egypt, Garhy et al.

(2019) showed no significant direct impact of transformational leadership on

innovation and innovative performance. Transformational leadership

indirectly impacts innovation and performance through the moderating effect

of a creative culture. It strongly influences innovativeness and creativity in

marketing strategy redesign to enhance performance among small and

medium firms. Freihat (2020) examined the role of transformational

leadership in redesigning marketing strategies in healthcare firms in Jordan

and showed the significant impact of this leadership style in redesigning

marketing strategies. Specifically, individualized consideration, one of the

four components of transformational leadership, exerted the most substantial

influence on marketing strategy redesign. Individualized care involves

nurturing the innovativeness and creativity of employees to hone their

talents, skills, and experiences. Individualized consideration also facilitates

employee acceptance of and participation in change.

Transformational Leadership and Job Satisfaction

Transformational leadership affects organizational performance

through job satisfaction. Al-Ahmadi and Kasztelnik (2021a) investigated

the link between transformational leadership and job satisfaction in small

businesses in Virginia in the United States and reported several findings.

One finding is that small companies with leaders trained to employ

transformational leadership have reported higher levels of employee

satisfaction, which is associated with positive business outcomes. Al-

Ahmadi and Kasztelnik also found that transformational leadership affects

job satisfaction by fostering teamwork and a positive work environment.

Lastly, the relationship stands across different small businesses. The

researchers recommended adopting transformational Leadership in

Virginia’s struggling small businesses in a similar study on the association

between transformational leadership and employee satisfaction in small

firms in Virginia. Al-Ahmadi and Kasztelnik showed a correlation between

a positive work environment and employee performance. A positive work

environment led to employee satisfaction that improved performance.

In a meta-analysis on leadership, organizational behavior, and

performance, Olutoye and Asikhia (2022) showed that transformational

leadership affected job satisfaction by fostering teamwork and a positive

work environment. Job satisfaction improved performance.

Transformational leadership positively influences trust toward leaders,

organizational commitment, and job satisfaction, which determine

organizational performance. Transformational leadership had a

significant impact on corporate citizenship. Leadership style has a direct

effect on organizational performance. Transformational leadership

positively influences trust toward leaders, organizational commitment,

and job satisfaction, which determine organizational performance.

Enhancing the Physical Work Environment

Transformational leadership enhances the physical work environment

to boost employee creativity and creative self-efficacy, which improves

performance among small and medium companies. Chaubey et al. (2019)

examined the mediating and moderating impact of creative self-efficacy and

physical work environment on the association between transformational

leadership and employee creativity and organizational innovation among

automotive manufacturing firms in India. Chaubey et al. found that

transformational leadership enhances employee creativity, and creative self-

efficacy mediated the link between transformational leadership and physical

work environment moderated the impact of transformational leadership on

employee creativity. A contingent or reward based on goal achievement

strengthened the positive influence of components of transformational

leadership on job satisfaction in small businesses. Puni et al. (2018)

investigated the moderating effect of contingent reward on the connection

between transformational leadership and job satisfaction among bank

employees. Puni et al. found that contingent compensation strengthens the

positive influence of components of transformational leadership on job

satisfaction. Contingent reward moderated the impact of idealized influence

and intellectual stimulation on job satisfaction.

Researchers have investigated the indirect impact of transformational

leadership on organizational performance via mediating and moderating

factors. Transformational leadership indirectly influences organizational

performance through diverse pathways. However, despite the research, there

still needs to be a gap in the mediating and moderating factors that facilitate

small business organizational performance improvements. Researchers have

also examined the influence of transformational leadership on organizational

performance in various industry and country contexts, solely or in

combination with other leadership strategies and styles (Khan et al., 2020).

Another research gap is the use of more in-depth research methods.

Quantitative studies established the significance and direction of the impact

of transformational leadership on the mediating and moderating factors, but

a deeper understanding of the association is warranted.

Leadership Strategies in Small Businesses

Several leadership strategies, which were primarily developed for big

companies, can also be utilized by leaders in small businesses (Alfarsi,

2021; Howard et al., 2019). However, while every leadership approach

influences both the workforce and the functional aspects of small

businesses, only some strategies can be effectively implemented in all small

business contexts (Garcia & Russo, 2019; Putra & Cho, 2019). Despite this,

small businesses across different countries and industries have adopted

diverse leadership styles.

Leadership Strategies in the Early Stages of Small Businesses

Specific leadership strategies matter more in the early stages of small

businesses. Leaders must be adept at business planning at the start of a small

business (Howard et al., 2019). A clear vision is a key part of business

planning. Effective leaders bolster the performance of new small businesses

by inspiring employees to accept and commit to a meaningful vision for

employees, customers, and the community. Engagement with every aspect of

the business, communicating effectively, promoting a positive work

environment, having a positive attitude, and leading by example also support

new small business performance (David Pillai, 2022). These characteristics

are crucial in the early stages of small businesses and have a significant

impact on organizational performance. Successful small business leaders

engage in trial and error to determine the best strategies for the new small

business, practice these strategies to maximize outcomes, and are ready to

adopt new strategies when circumstances change (David Pillai, 2022).

An evolutionary mindset enables the resolution of conflicts through

coordinated efforts, ensuring the survival of emerging small businesses (Van

Vugt & von Rueden, 2020). Employees who are unhappy with their

company’s leadership can have reduced satisfaction and motivation, which

often results in poor job performance (Fulmer & Ostroff, 2017; Pittino et al.,

2016; Yalabik et al., 2017). Good leadership is vital to the success of new

small businesses. Investing in leadership training and development can

improve small business performance, especially among small firms at the

early stages of operation (Subramony et al., 2018). By allocating resources

towards enhancing leadership skills within the organization, small firms can

unlock their full potential and achieve higher levels of success.

Subramony et al. (2018) highlighted the transformative power of

leadership training in small businesses. It equips leaders with the necessary

tools and knowledge to effectively manage their teams but also fosters a

culture of innovation, adaptability, and growth. Strong leadership is crucial

in navigating the challenges that arise during the early stages of a small

business, and investing in training and development can greatly enhance a

leader’s ability to make informed decisions, motivate employees, and foster

a positive work environment.

Leadership Strategies Common to Small Businesses

Though small businesses may vary in nature, some specific leadership

qualities are consistently effective across all small businesses. Some of

these consistent leadership qualities include effective use of resources,

positivity, risk-taking flexibility, and adaptability in a dynamic business

environment (Kocherbaeva et al., 2019). While positivity fosters healthy

interactions and positive attitudes between stakeholders, thus enhancing the

overall organizational morale, flexibility and adaptability often lead to the

business achieving its desired outcomes (Chumphong & Potipiroon, 2019).

Lastly, small business leaders need to be risk-takers. However, it is also

important to distinguish between calculated risks and threats to ensure that

the business and its customers remain safeguarded against the detrimental

impacts of uncalculated risks (Kocherbaeva et al., 2019).

Leadership Styles Applied in Small Businesses

Multiple leadership styles have been applied in small businesses in

various countries and industries. This indicates that no single leadership

style fits the needs of all small businesses, and that the applicability of

certain leadership styles is specific to the context of small businesses. The

most frequently applied leadership styles in small businesses include

transformational, transactional, autocratic, entrepreneurial, strategic,

adaptive, evolutionary, benevolent, and spiritual leadership approaches.

These leadership styles find broader applicability across various industries

and geographic locations.

Transformational Leadership Theory

Chester Burns (1978) founded transformational leadership theory, and

through the years, Bernard Bass (1985, 1999) extended Burn’s theory by

contrasting transformational leadership with transactional leadership across

sectors and genders. Bass found that transformational leadership supported

better organizational outcomes when compared to transactional leadership,

and women tended to adopt transformational leadership more than men.

Transformational leaders are highly proactive in organizations, as they

engage in decision-making, participate in various organizational activities,

and influences followers to enhance performance (Cho et al., 2019; Jimenez,

2018). Transformational leadership involves robust values and idealized

influence to build good relations with and inspire subordinates (Chukwu,

2021). Transformational leaders foster a positive workplace culture by

establishing norms and motivating subordinates to embrace the

organization’s values and strive towards achieving its overall business goals

(Jones et al., 2019). Transformational leadership highlights altruism and self-

sacrifice for the follower’s or organization’s betterment (Manzoor et al.,

2019).

Currently, researchers used the transformational leadership theory as

the lens for their work on small and medium firms in various sectors (Al-

Ahmadi & Kasztelnik, 2021a; Burawat, 2019; Chaubey et al., 2019;

Chukwu, 2021; Freihat, 2020; Garhy et al., 2019; Idris et al., 2022; Jackson,

2021; Jain & Duggal, 2018; Manzoor et al., 2019; Puni et al., 2018). Al-

Ahmadi and Kasztelnik (2021b) showed how small business leaders in

Virginia applied transformational leadership characteristics. Al-Ahmadi and

Kasztelnik also found that small business leaders implemented the idealized

influence component through charisma, confidence, consistency,

consideration for others, and ethical values. They inspired motivation by

promoting commitment by example, encouraging employees to become

enthusiastic and confident in their abilities, sharing expectations, and

involving employees to give them a sense of ownership for their work. Al-

Ahmadi and Kasztelnik emphasized that small business leaders facilitated

intellectual stimulation by providing employees with opportunities to handle

problems to stimulate critical thinking and generate new ideas for the

business. Al-Ahmadi and Kasztelnik also discovered individualized

consideration among their small business leaders in Virginia meant the

leader nurtured employees through encouragement, mentoring, active

listening, and individualized recognition. Authors of empirical studies

suggested a correlation between transformational leadership, the behavior of

others, and the performance of the organization (Siangchokyoo et al., 2019).

Complementary Theories

The complementary theories include servant leadership, adaptive

leadership, entrepreneurial leadership, strategic leadership, evolutionary

leadership, benevolent leadership, and spiritual leadership. Although each

theory is not exact, there are similarities. Through the comparison of their

key constructs to those of transformational leadership, I emphasize each

theory that complements the transformational leadership theory.

Servant Leadership

Servant leadership is a leadership style that emphasizes the need to

serve others before oneself (Gandolfi & Stone, 2018). Greenleaf coined

the term servant leadership theory in 1970 but prior, he recognized servant

leadership when he read the works of Hermann Hesse’s short novel titled

Journey to the East (Bennis et al., 2002). It was when he was 60 years of

age that Greenleaf published the book titled, The servant as leader (Bennis

et al., 2002). Greenleaf defined servant leadership as one is a servant first

(Greenleaf, 1970). He is renown in his works concerning servant

leadership. From that point, his books and essays have been central to

many discourses. Spears (2010) considered the works of Greenleaf and

identified ten key constructs of servant leadership to include (a) listening,

(b) empathy, (c) healing, (d) awareness, (e) persuasion, (f)

conceptualization, (g) foresight, (h) stewardship, (i) commitment, and (j)

building community.

It supports transformational leadership in a business context by

emphasizing the importance of serving and developing the team members. It

focuses on the overall wellbeing of the people within the business

organization. According to Gandolfi and Stone (2018), servant leader first

ensures that the need of the people within the business is served, which often

translates to an enhanced service of the overall organization along with its

goals. Transformational leaders inspire and motivate their team members

through vision and change, while servant leaders prioritize the team

members' needs and growth (Gandolfi & Stone, 2018). Transformational and

servant leaders work together to create an environment that values and

inspires employees, resulting in innovation, commitment, and increased

performance.

Adaptive Leadership

Adaptive leadership involves continuously assessing priorities,

changing targets, anticipating issues, implementing preventive measures, and

evaluating and taking worthit risks (Quansah & Hartz, 2021). Quansah and

Hartz (2021) observed 15 small businesses with leaders who successfully

exhibited adaptive leadership as they applied foresight and flexibility while

dealing with changing business conditions. Bor (2020) found that effective

small business leaders avoid organizational complacency by being lifelong

learners who are quick to adapt and adaptable in choosing the best

management techniques. Adaptive leadership can support transformational

leadership. Transformational leadership can be the dominant leadership

style, and adaptive leadership can augment transformational leadership

during organizational change and be applied in an environment conducive to

innovation (Yaghi, 2017). The research study on leadership styles affecting

small business leaders’ organizational performance is pertinent to adaptive

leadership and its potential impact on enhancing the effectiveness of

transformational leadership in managing organizational change, fostering

innovation, and preventing organizational complacency among small

businesses.

Entrepreneurial Leadership

Entrepreneurial leadership has been widely implemented in small

businesses. Entrepreneurial leadership involves a leader who is confident in

their ability to think, behave, and act in pursuit of actualizing business vision

and plans to benefit all stakeholders; a proactive leader who engages with all

people involved in the business; a leader assuming responsibility for

facilitating conditions that usher systematic coordination and reactiveness to

changes in the business environment; and a leader who fosters productivity

by exercising innovativeness and creativity and encouraging the same from

employees (Sandybayev, 2019). Entrepreneurial leadership has been applied

in small and medium firms in the United Arab Emirates (Sandybayev, 2019),

small and medium firms in Kuwait (Sawaean & Ali, 2020), microfirms in

West Java, Indonesia (Rusliati et al., 2020), small and medium enterprises in

Indonesia (Purwati et al., 2021), small and medium firms in the Kingdom of

Saudi Arabia (Alfarsi, 2021), and small businesses in the United Kingdom

(Henley, 2022).

Entrepreneurial leadership aligns with transformational leadership

through a clear vision, inspirational motivation, effective communication,

and empowerment to facilitate creativity and innovation in the organization

(Britchenko et al., 2018). Transformational leadership and strategic

leadership are closely related. Strategic leadership can be performed in day-

to-day duties in a transformational manner.

Strategic Leadership

Strategic leadership involves leaders continuously making decisions

on changes or adjustments to ensure short-term financial stability and long-

term viability (Taj et al., 2020). Strategic leadership has yet to be applied

effectively, but this leadership style is suggested for use in small and

medium pharmaceutical firms in Pakistan that experienced operational and

financial challenges (Taj et al., 2020). Strategic leadership can complement

transformational leadership. Transformational leadership can be the core

management style, and strategic leadership can be used to direct new product

teams in achieving their innovative targets (Kazmi et al., 2016). The

combination of transformational and strategic leadership styles can

potentially enhance the effectiveness of management and improve

organizational performance.

Evolutionary Leadership

Evolutionary leadership involves the exertion of a conscious effort to

understand leadership, particularly the evolution of leadership and its role in

the group setting (Van Vugt & von Rueden, 2020). Evolutionary leadership

is more of a contemplative exercise for leaders than a practical approach.

Evolutionary leadership has been discussed in small groups, which

encompass small businesses (Van Vugt & von Rueden, 2020).

Evolutionary leadership can support transformational leadership.

Evolutionary leadership may allow leaders to identify and confront

cognitive biases, reconcile old and new ways of thinking, and consciously

prevent themselves from the innate desire to exploit subordinates (Gorecki

et al., 2022). Additionally, evolutionary leadership may enable leaders to

develop better values, influence subordinates, inspire subordinates,

intellectually stimulate subordinates, and accommodate the individuality of

subordinates enhancing organizational performance (Gorecki et al., 2022).

Benevolent Leadership

Benevolent leadership involves a leader concerned with the

performance and well-being of employees and the situation of the

communities served by the business (Chumphong & Potipiroon, 2019).

Benevolent leadership has been applied in small and medium firms in

Thailand through leaders who built a supportive work environment to

empower employees to perform their tasks (Chumphong & Potipiroon,

2019). Benevolent leadership can support transformational leadership

through the alignment of benevolent leadership components. The

components include moral actions, creating a sense of meaning, inspiring

hope, demonstrating courage for positive action, and positively impacting

the community (Grego-Planer, 2022). These attributes, coupled with

transformational leadership aspects of consideration for others, ethical

values, and encouraging employees may facilitate better organizational

outcomes (Al-Ahmadi & Kasztelnik, 2021a).

Spiritual Leadership

Spiritual leadership involves the motivation of employees through the

promotion of virtues such as hope, integrity, and connectedness (Rafiki et

al., 2022). Spiritual leadership has been applied in small and medium firms

in Thailand by leaders who created a purpose that inspired employees

through an altruistic organizational culture that facilitated care, respect,

appreciation, and belongingness (Rafiki et al., 2022). Motivation essentially

refers to an inner or external drive that propels an individuals’ enthusiasm

and capacity to persevere through and complete a task (Meng, 2016). This is

also the area in which it is most like transformational leadership. Spiritual

leadership can support transformational leadership through the infusion of

spiritual virtues exhibited in a vision, role modeling, and the actions of

follower empowerment to enhance outcomes, especially in firms or business

environments where spiritual virtues are admired (Smith et al., 2018).

In contrast to the transformational leadership theory, there are

expansive descriptions of how transactional and autocratic leadership

styles differ from transformational leadership. The discussion

concerning these theories is intended to highlight their distinction.

Transactional Leadership

The main objective of the transactional leadership style is to address

the leadership practices of political leaders (Northouse, 2019).

Transactional leadership involves offering rewards in exchange for

productivity and loyalty and having a penalty system to deter

underperformance (Al-Ahmadi & Kasztelnik, 2021b). Transactional

leadership has been used in various small businesses in the United States

(Al-Ahmadi & Kasztelnik, 2021b; McCann & Sparks, 2019) and small and

medium firms in Nepal (Paudel, 2020) through a system or process for

providing incentives for productivity or performance and deterrents for sub-

par performance or misconduct.

Transactional leadership contrasts with transformational leadership

in the underlying management and motivation concepts. Transactional

leadership involves offering rewards for productivity (Al-Ahmadi &

Kasztelnik, 2021b), while transformational leadership inspires

productivity through leadership values (Chukwu, 2021). The two

leadership styles contrast (Burns, 1978; Paudel, 2020). However,

combining both leadership styles at certain times may benefit an

organization, such as relying on transactional leadership during time-

sensitive activities requiring risk mitigation and safety and

transformational leadership for long-term activities and during times of

uncertainty (Baskarada et al., 2017). Different from transformational,

autocratic leaders exhibit characteristics that may not be as collaborative

with the workers.

Autocratic Leadership

Autocratic leadership involves the leader taking full control over all

business decisions (Olayisade & Awolusi, 2021). Autocratic leadership has

been applied in small and medium firms in Vietnam (Le et al., 2021), an oil

firm in Nigeria (Olayisade & Awolusi, 2021), and a family-run

manufacturing business in Ghana (Amegayibor, 2021) by leaders who

solely made all business decisions without consulting employees and

communicated their decisions to employees for implementation or

compliance.

Autocratic leadership contrasts with transformational leadership in

terms of the involvement of subordinates, as shown by the preferred

adoption of autocratic leadership over transformational leadership in a

family firm in Ghana (Amegayibor, 2021). Autocratic leadership is an

entirely top-down strategy (Olayisade & Awolusi, 2021), while

transformational leadership involves subordinates to foster ownership of

their work (Al-Ahmadi & Kasztelnik, 2021a). While autocratic leadership

has been viewed and applied in contrast with transformational leadership,

autocratic leadership can be combined with transformational leadership

given various situations and by using autocratic leadership in the short term

for specific projects such as those with strict deadlines and transformational

leadership in the long term (Puni et al., 2018).

This literature review comprises research studies that used

transformational leadership and other supporting and contrasting theories of

transformational leadership to identify their relevancy to organizational

performance.

Organizational Performance of Small Businesses

Organizational performance can be determined by financial and

nonfinancial measures of the extent of accomplishment of business goals

through the totality of efforts exerted by leaders and employees (Nikpour,

2017; Singh et al., 2016). Generally, organizational performance reflects the

achievement of survival, endurance, efficiency, effectiveness,

competitiveness, product and service quality, product and service

diversification, market growth, and profitability targets within a particular

time frame (Ahmed & Shafiq, 2018). Certain determinants of organizational

performance discussed below are specific to small businesses.

Survival

Surviving beyond the first or fifth year is a key indicator of small

business performance (Sandybayev, 2019). Small businesses face various

challenges, such as limited funds, insufficient workers, inexperience, and

limited managerial and leadership knowledge, which could cause failure

(Rafiki et al., 2022). About 1 million new small businesses are established

annually in the United States (Cary, 2020). Approximately 40% of these

new businesses fail within the first year of operation, and 50% to 80% fail

within 5 years (Quansah & Hartz, 2021). About 90% of online small

businesses close within the first year (Smith, 2020). Approximately 30% of

new small business restaurants close within the first year of operation,

representing $5.2 billion (i.e., about $16 per person in the United States) in

lost revenue (Putra & Cho, 2019). Successful businesses are those that

have survived the first year of operation and those that have lasted for more

than 5 years.

Job Creation and Retention

Hiring and retention of employees are essential determinants of

small business performance (Manzoor et al., 2019; Rafiki et al., 2022).

Small businesses have been commended for creating jobs in a wide range

of industries and geographic areas for skilled and low-skilled workers,

engaging in innovations, promoting sustainable operations, and lessening

income inequality (Manzoor et al., 2019). In the restaurant industry,

small businesses hire about 14.7 million workers, or around 10% of the

total labor force of the United States (Putra & Cho, 2019). Retaining

millions of workers reflects the success of small restaurant businesses.

Legal, Regulatory, and Policy Navigation

Since many small businesses have limited capital, they are vulnerable

to changes in local tax burden or policies that affect the cost of capital, labor,

raw materials, and dayto-day operations. In Florida, local taxes and fiscal

spending significantly impact small business operations within and outside

the locality (Guo & Cheng, 2018). Small businesses that responded well to

changes in Florida’s local policies could grow and thrive.

Leadership Effectiveness

Effective leadership determines small business success (Rafiki et al.,

2022). Small business leadership is a competitive advantage (Howard et al.,

2019). Effective decisionmaking and adaptive leadership prevent small

businesses from closing within 5 years of operation (Quansah & Hartz,

2021). Leaders of small businesses work with limited resources and perform

various jobs simultaneously (Putra & Cho, 2019). Many small business

leaders need to gain prior managerial experience and tend to make decisions

quickly without consulting employees, which could contribute to employee

turnover and business failure. Poor leadership explains the failure of small

businesses (Rafiki et al., 2022). Poor leadership is one of the reasons for the

failure of small restaurants in

Indonesia (Putra & Cho, 2019). The failures of 13 small businesses in

Turkey’s trade, manufacturing, and services sectors within 3 years of

operation were primarily due to the leaders’ failure to recognize business

opportunities, exploit promising opportunities, and build interpersonal

relations (Atsan, 2018). Limited business-specific knowledge of leaders

explained the struggles and failures of online small businesses (Smith,

2020).

Leadership Strategies and Organizational Performance in Small

Businesses

Small businesses are vital components of the global economy, and

their success is largely associated with their leadership strategies. These

businesses often adopt various leadership strategies and styles to facilitate

their operations and thus enhance their organizational outcomes. Leadership

strategies tend to impact the organization's performance and overall health

significantly. However, the impact of leadership strategies is only sometimes

direct, as sometimes they influence organizational performance based on

various intervening factors such as employee motivation, team collaboration,

and organizational culture.

Moreover, the leadership style chosen can either enhance or hinder the

organizational performance. Various factors often determine the relationship

between leadership strategies and organizational performance. For example,

a transformational leadership style might inspire employees to go above and

beyond their usual tasks, boosting productivity. On the other hand, an

autocratic style might stifle creativity but can be effective in situations

requiring decisive actions. In addition to that, some external and internal

factors can moderate the relationship between leadership and performance,

making the connection even more multifaceted. Fundamentally, the

relationship between leadership strategies and organizational performance in

small businesses is often complex, as both the direct and indirect factors play

vital roles in shaping its dynamics.

Impact of Leadership on Organizational Performance

Leadership stands as a guiding light for organizations to achieve their

goal in this ever-changing business world. Leadership involves much more

than decision-making or just giving out strategic directions, as it influences

all the aspects of an organization, including how employees operate, how

the business adapts to changes, and how it grows over time. Effective

leadership is important to all types of business, both large, medium, and

small, but most especially those that struggle to deal with the globalization

challenges, digital transformation, and changing markets. The impacts of

leadership are mirrored in many different aspects of the organization,

starting from employee satisfaction and performance to long-term business

sustainability and ethical considerations.

Employee Performance

Leadership, as the backbone of any organization, plays a pivotal role

in driving performance both directly and indirectly. Research by Niken et al.

(2022) delved deep into the dynamics between leadership style,

organizational culture, and their resultant effects on employee performance,

with work motivation as an intervening variable among public sector

employees in Indonesia. Niken et al. not only found leadership style to be a

significant determinant of employee performance but also illuminated the

intricate relationship between leadership and motivation. Similarly, they

offered further evidence that suggested that work motivation could mediate

both the impact of leadership style on employee performance and the impact

of organizational culture on employee performance (Niken et al., 2022).

Prayogi and Lesmana (2021) also reported a partial but significant effect of

leadership style on employee performance through motivation. A leadership

style that facilitates motivation can directly, albeit partially, and indirectly

positively impact employee performance (Prayogi & Lesmana, 2021).

Leadership indirectly influences organizational performance through

motivation as the sole mediating factor or in combination with other factors.

Job Satisfaction

Job satisfaction has risen to become one of the major indicators of

organizational health in the evolving world of business. Jonsa and Pasaribu

(2021) provided insights into the multifaceted influences of leadership style

and the work environment on job satisfaction. Their findings revealed that

the right blend of leadership style and conducive work environment can

significantly elevate job satisfaction, which subsequently impacts job

performance. Likewise, a study by Chukwu (2021) highlighted the strategies

employed by leaders in small businesses, emphasizing the use of financial

incentives and job training. These strategies not only motivated employees

but also played a pivotal role in enhancing job satisfaction, leading to the

successful retention of sales staff and, consequently, increased profit levels.

Paais and Pattiruhu (2020) enriched this narrative by pointing out the indirect

influence of leadership on performance, bridged by employee satisfaction.

Organizational Culture

The role of leadership goes way past immediate tasks and plays a vital

role in structuring the organizational culture. Razak et al. (2022) largely

explored the relationship between leadership style and organizational culture

and how they influence organizational performance. Their findings brought

out a clear picture of how interconnected and interdependent these elements

are, with each one playing a role in shaping the broader organizational

culture, ultimately driving performance. Visionary leadership fosters a

strong organizational culture that can attract top talents and ensure their

alignment with the organizational goals. It is also important for leaders to be

vigilant enough to the ever-evolving external environment and always be

ready to adapt their organizational culture to meet new challenges and

opportunities, ensuring long-term relevance and resilience.

Business Sustainability

Business sustainability and long-term growth are largely associated

with the type of leadership in an organization. Chukwu’s (2021)

investigation into the practices of leaders in small businesses in Texas

underscores this sentiment. The researcher discovered that leaders who can

access the business environment and leverage financial incentives and

strategic job training to the advantage of their business usually succeed in

retaining crucial sales staff and also enhance their employees’ sense of job

satisfaction. This largely increases their profit levels and maintains

employees, thus ensuring business sustainability.

Employee Welfare and Ethical Considerations

Ethical leadership and employee welfare are both indispensable in the

modern business world. Sumlin et al. (2021) threw light on this changing

dimension of leadership, emphasizing the profound influence that an ethical

environment, organizational commitment, and job satisfaction have on

organizational performance outcomes. According to their suggestion, a

business that embraces ethics in its leadership style is pivotal in fostering

commitment and satisfaction among employees, thus increasing their

performance and the overall performance of the organization (Sumlin et al.,

2021). Thompson et al. (2018) revealed how small business leaders perceive

and prioritize employee health, safety, and well-being depending on the

type of leadership they have.

Innovation and Digital Transformation

Leadership is pivotal in navigating the many challenges and

opportunities that the digital realm presents to business. Hang (2022)

presented a thorough analysis of the leadership capacities vital for small

medium enterprises to thrive in the digital economy. In his research, he

highlights the importance of vision-building, initiating change, and fostering

team development. He also identifies the gaps in leaders’ understanding of

strategy, change management, and organizational culture, emphasizing the

need for continuous leadership evolution in the face of rapid technological

advancements. With the rapid evolution in the business world and the surge

of Industry 4.0, leaders are forced to embrace a culture of continuous

learning, making sure that their businesses remain competitive amidst

emerging market trends and technologies.

Small Business Impact of Leadership Styles on Organizational

Performance

As previously shown, various leadership styles can be applied in

small businesses in different industries and countries. Leadership styles can

influence organizational performance directly and indirectly through

mediating and moderating factors. Small businesses often face unique

challenges in their dynamic ecosystem, and the leadership styles determine

their failure or success. Various leadership styles can exist within a small

business setting, each affecting the business in different ways. The

leadership style applied in a small business affects the operation of all other

aspects of the business.

Transactional Leadership and Organizational Performance in Small

Businesses

Transactional leadership, characterized by its structured, reward-based

approach, has a mixed impact on the performance of small businesses. Al-

Ahmadi and Kasztelnik’s meta-analysis (2021b) found transactional

leadership to have a negative association with job satisfaction and a positive

association with employee attrition in small organizations. McCann and

Sparks (2019) examined the influence of locus of control, leadership style,

and innovative work behavior among manufacturing firms in the United

States. They found out that internal and external locus of control moderated

the influence of leadership style. Innovative work behavior and transactional

leadership have a positive link to innovative work behavior, especially in

small businesses. In an investigation of the relationship between leadership

and entrepreneurship with business performance among small and medium

firms in Nepal, Paudel (2020) showed that transactional leadership style and

entrepreneurship orientation have significant positive effects on

organizational performance.

Autocratic Leadership and Organizational Performance in Small

Businesses

Autocratic leadership is preferred in many small businesses in

different countries, as it facilitates acceptable outcomes. Olayisade and

Awolusi (2021) conducted a case study of an oil firm in Nigeria to

investigate the impact of Autocratic leadership style on productivity.

Although they found out that autocratic leadership is the most dominant

leadership style in most small businesses, they also realized that it coexists

with other leadership styles, such as laissez-faire, bureaucratic,

transactional, democratic, and charismatic leadership (Olayisade &

Awolusi, 2021). In their examination of the influence of leadership styles on

the organizational outcomes of small and medium firms in Vietnam, Le et

al. (2021) found that most small firms adopt autocratic leadership because

of their small scale of operations, low employee competence, and

hierarchical set-up. However, some managers expressed support for

democratic leadership, claiming that the autocratic leadership style is too

simple for complex operations to create a more comfortable work

environment (Le et al., 2021). Firm size is an important factor in choosing a

leadership style, as many small firms also choose autocratic leadership due

to their need to exert control over employees. However, this objective to

control employees is often hard to achieve as family and other personal

relations influence most small businesses (Le et al., 2021).

Autocratic leadership is also appropriate in small businesses,

especially when the employees exhibit passivity and obedience, poor self-

discipline, and a desire for encouragement. Autocratic leadership is

generational and geographical, with small businesses owned by the older

generation and those in rural areas preferring this leadership style more than

firms owned by the younger generation and those operating in urban areas

(Amegayibor, 2021). Due to the contextual upsides and downsides of

autocratic leadership, the researchers recommended balancing between

autocratic and democratic leadership to nurture a caring and family-oriented

work environment. Amegayibor (2021) investigated the link between

different leadership styles and employee performance through a survey of

the employees of family-run manufacturing firms in Ghana and reported

that autocratic, charismatic, and paternalistic leadership styles affected

employee performance. Autocratic, charismatic, and visionary leadership

reduced errors. The leadership styles considered were transformational

leadership, autocratic leadership, charismatic leadership, paternalistic

leadership, and visionary leadership (Le et al., 2021).

Entrepreneurial Leadership and Organizational Performance in Small

Businesses

Entrepreneurial leadership has an overwhelmingly positive impact on

small businesses. Sandybayev (2019) researched the effect of entrepreneurial

leadership on the performance of small and medium firms in the United

Arab Emirates, according to owners and management, and reported a

positive correlation between entrepreneurial leadership and organizational

performance, with entrepreneurial leadership operating as a predictor of

organizational performance. Most respondents reported entrepreneurial

leadership qualities of creativity, passion, vision, and risk-taking. Based on

their investigation of the impact of entrepreneurial leadership, learning

orientation, and innovation capacity on the organizational performance of

384 small and medium business owners in Kuwait. Sawaean and Ali (2020)

found that entrepreneurial leadership and learning orientation were

positively and significantly associated with organizational performance.

They also found that the business owners’ innovation capacity mediated this

positive relationship (Sawaean & Ali, 2020).

Rusliati et al. (2020) examined the impact of entrepreneurial

leadership on the emergence and survival of microfirms in West Java,

Indonesia. They realized that the adoption of technological information was

crucial to the growth of microfirms. Microfirm owners were mostly

millennials who found it easier to creatively apply technological information

to their business when compared to older owners. Microfirm owners who

failed to apply technological information to their businesses eventually lost

customers or closed (Rusliati et al., 2020). Entrepreneurial leaders could

drive business development, raise revenue, diversify products, grow capital,

and hire more workers. An entrepreneur group also allowed microfirm

owners to share information, coordinate training, and gain insights into

leadership and business development. Entrepreneurial leaders positively

influence business development through effective management, recognition,

and capturing of opportunities, confidence, resolve, personal integrity, good

communication, and social and technological skills. Purwati et al. (2021)

investigated the role of innovativeness on the performance of small and

medium firms in Indonesia and found that entrepreneurial leadership

strongly influenced firms. Innovativeness served as a mediating factor for

social capital to have a substantial positive effect on business performance.

Similarly, Alfarsi (2021) examined the impact of entrepreneurial

leadership competencies on the survival of small and medium firms in the

Kingdom of Saudi Arabia and showed that the competencies of innovation,

leadership, networking, and risk-taking had a significant positive influence

on firm survival. Innovation and leadership competencies substantially

affected the performance and survival of small and medium firms.

Networking supported competitive advantage and market growth. Risk-

taking enabled the calculated assumption of risk and the implementation of

proper risk management strategies. Henley (2022) surveyed the managers of

small businesses in the United Kingdom to determine the leadership

practices that differentiated the frontier and laggard firms and found several

results. Leadership quality determined the performance gap between the

frontier and laggard firms. Leadership skills in promoting entrepreneurial

cognition and motivation can support small business performance. Cognition

translates into adaptability and the effective deployment of resources.

However, limited evidence indicates the effect of improvements in

leadership and management skills on productivity.

Servant Leadership and Organizational Performance in Small

Businesses

In a meta-analysis, Gandolfi and Stone (2018) considered the

effectiveness of servant leadership in small businesses and reported several

findings. Effective leadership involves modeling, inspiring a shared mission,

challenging the process, enabling others to act, and encouraging the heart.

Servant leadership meets the elements of effective leadership. Servant

leadership involves listening, empathy, healing, awareness, persuasion,

conceptualization, foresight, stewardship, commitment to the growth of

people, and community building. The proper application of servant

leadership can elevate workforce engagement and improve organizational

performance in small businesses.

Strategic Leadership and Organizational Performance in Small

Businesses

In an investigation of the influence of strategic leadership on

organizational performance in Pakistan’s small and medium pharmaceutical

firms, Taj et al. (2020) showed the role of strategic leadership in addressing

challenges firms face. Leadership is lacking among small and medium

pharmaceutical firms in terms of having a long-term vision, appropriate

human resource management, appropriate policies and procedures, effective

monitoring and assessment, and technological competence. Strategic

leadership can address these issues by developing an assessment of tools

and standards for measuring and controlling organizational outcomes and

preparing for changes in the business environment.

Adaptive Leadership and Organizational Performance in Small

Businesses

Quansah and Hartz (2021) explored the impact of adaptive leadership

on decision-making by interviewing 32 leaders of 15 thriving small

businesses and found the importance of decision-making and adaptive

leadership. Given that about 50% of new small businesses close within 5

years, leaders of successful small businesses prevent firm complacency by

continuing to learn, being agile and flexible, managing time well, building

strong relations and networks, and creating a family-oriented work culture to

elevate business survival.

Evolutionary Leadership and Organizational Performance in Small

Businesses

In a meta-analysis on evolutionary leadership in small businesses, Van

Vugt and von Rueden (2020) identified several benefits of evolutionary

leadership on small business performance. Evolutionary leadership involves

using tools and exercises to better understand leadership and help leaders

overcome subjective biases and blind spots. It also involves recognizing the

human potential for resolving conflicts through the coordination of leaders

and subordinates. Engagement in collaboration indicates good leadership. It

also involves understanding the barriers to effective leadership: the

mismatch between modern and traditional environments, cognitive biases in

leader decision-making, and the innate human propensity to command and

take advantage of others. By understanding these barriers, leaders can self-

evaluate and rectify them in their leadership to better impact organizational

outcomes.

Benevolent Leadership and Organizational Performance in Small

Businesses

Chumphong and Potipiroon (2019) explored the role of benevolent

leadership and the mediating effect of employee psychological

empowerment and customer service behaviors on business performance

among small and medium firms in Thailand. Chumphong and Potipiroon

explained that benevolent leadership was a determinant of high performance,

with employees’ psychological empowerment and customer service

behaviors having a full mediating impact. To achieve superior performance,

leaders of small and medium firms should create a supportive work

environment to enable employees to deliver top-notch customer service.

Spiritual Leadership and Organizational Performance in Small

Businesses

Rafiki et al. (2022) explored the application of spirituality leadership

to small and medium firms and reported that its core principle is vital in

managing small and medium firms effectively and efficiently. Spirituality

affects the motivation and performance of employees. Spiritual values

motivate and inspire employees to commit to their work and the

organization, which elevates job satisfaction and employee performance.

Spiritual leaders create a purpose that inspires employees and develops an

altruistic organizational culture based on humility, compassion, honesty,

care, and respect for each other to foster appreciation and a sense of

belongingness.

Summary and Transition

Within Section 2, I provided the literature review opening narrative,

and an application to the applied business problem. Several themes

emerged from the review of academic qualitative, quantitative, and mixed

studies. Leadership is crucial to the performance of small businesses.

Certain determinants of organizational performance are specific to small

businesses. Leadership can directly or indirectly affect small business

performance and can indirectly affect performance through mediating and

moderating factors. Various leadership styles have been observed in small

businesses. Transformational leadership indirectly affects performance

through mediating and moderating factors. Communication, motivation,

efficiency, job autonomy, job satisfaction, and corporate social

responsibility mediated the positive impact of transformational leadership

on organizational performance. Emotional intelligence, innovation, and

contingent reward moderated the positive influence of transformational

leadership on organizational performance. Transformational leadership can

have a similar effect, weaker impact, stronger influence, or elevated effect

in combination with other leadership strategies and styles on organizational

performance relative to other leadership styles. A context-specific

investigation of the direct and indirect impact of leadership on

performance, leadership strategies that small business leaders use to

improve organizational performance, and the impact of transformational

leadership, on its own or in combination with other styles, in small

businesses in the United States were the research gaps.

Concerning methodology, most of the studies were quantitative or

mixed method, which examined the association between leadership style,

organizational outcomes, and moderating or mediating variables in small

businesses. The qualitative studies offered explanations of the influence of

leadership style on organizational outcomes in small businesses based on the

accounts of leader managers or employees. A small number of single or

multiple case studies covered the impact of leadership style on

organizational performance in a specific industry or geographic context.

In Section 3, I will describe project ethics; the nature of the project;

population, sampling and participants; and data collection activities.

Additionally, I will describe the interview questions, data collection

activities, interview questions, data organization and analysis techniques,

reliability and validity and transition and summary. I will conclude with

Section 4, presentation of findings, business contributions and

recommendations for professional practice, implication for social change,

recommendations for further research, and conclusion.

Section 3: Research Project Methodology

Project Ethics

As an instrument for data collection, I was responsible for ensuring

that the information presented and discussed in the study was reliable,

authentic, and accurate. I was also accountable to participants for any

errors that may arise. A researcher in a qualitative investigation is an active

instrument for gathering data (Denzin & Lincoln, 2017). Collecting rich

data from participants occurs through the facilitative role of the researcher

in creating a comfortable and open atmosphere and using cues to ensure the

smooth flow of information sharing (Anderson, 2010). As a business

owner, I had minimal knowledge of the topic and had no prior relationships

with the participants I interviewed.

I conducted the qualitative pragmatic inquiry honestly and ethically.

According to the Belmont Report, researchers must address three elements of

ethical research when conducting research using human subjects: (a) respect

for persons, (b) beneficence, and (c) justice (National Commission for the

Protection of Human Subjects of Biomedical and Behavioral Research,

1979). As a data-gathering instrument, I ascertained my personal beliefs,

experiences, judgments, and expectations and followed the ethical principles

emphasized in the Belmont Report. Several measures were useful in limiting

the influence of researcher biases and subjectivity during data gathering,

along with receiving consent from the participants.

Informed consent ensures ethical research. Informed consent refers to

the voluntary communication of agreement to participate in a study after

receiving adequate information about the study and the circumstances

surrounding the study to support a sound decision on participation

(Burkhardt et al., 2022). I made a phone call and then sent a letter of

invitation to each potential participant. The letter contained an introduction

of myself as the researcher and a brief explanation of the purpose of the

study. Once the potential participants agreed to take part in the study, I

emailed them the informed consent form. The informed consent form

contained details about the interview procedures, voluntary nature of the

study, risks and benefits of being in the study, privacy, and my contact

information for questions. I began collected data for the study upon

receiving the Walden University Institutional Review Board’s approval

(Approval Number 01-30-24-1018232).

I protected the privacy or confidentiality of the participants throughout

the study. Ensuring privacy or confidentiality involves setting limits on

information to be collected and revealed (Pearlson et al., 2019). I only used

the information provided by participants for the purpose of my exploration

and did not include individuals’ names, business names, or identifying

information of the participants and their organizations in the final research

report. Furthermore, I protected the names of participants by assigning them

the participant codes of P1, P2, P3, P4, P5, and P6 and C1, C2, C3, C4, C5,

and C6 to identify their respective companies. I did not offer incentives for

participation in the study, which ensured transparency and ethical

considerations in the research practices.

I safeguarded accessibility to the data throughout the study.

Accessibility pertains to the protection of information and conditions of

access (Pearlson et al., 2019). I will keep the recordings; transcriptions; and

digital storage devices, such as USB drives, in a locked drawer in my home

office for 5 years to protect the rights of the participants. After 5 years, I will

shred my transcriptions and interpretation notes and permanently erase or

delete the recordings and electronic data.

I shared a summary of the results with the participants. Participants

were allowed withdraw from the study at any time by sending me an email;

however, there were no withdrawals.

Nature of the Project

I selected the qualitative method for this study because I wanted to

answer what, how, and why questions (see Saunders et al., 2015). I sought

to answer who, what, and how questions as I explored the leadership

strategies small business leaders use to improve their organizational

performance.

I chose a pragmatic qualitative research design for this study because

it is appropriate for exploratory research. The aim of pragmatic qualitative

research is to connect theoretical concepts with practical application (Savin-

Baden & Major, 2013). Given that I focused on a phenomenon within small

businesses, the pragmatic inquiry design was the most appropriate to use.

Population, Sampling, and Participants

To be eligible to participate in this study, individuals had over 18

years old and be leaders of small businesses in Central Illinois who had

implemented leadership strategies that improved their organizational

performance. Qualified small businesses were those with less than 500

employees. Using eligibility criteria ensures that the participants can provide

sufficient data to address the research question (Merriam & Tisdell, 2016).

I gained access to the participants by visiting the area Chamber of

Commerce and requesting their small business public directory. The small

business directory listed several small businesses in Central Illinois and

included the business name, addresses, date of existence, business owner

names, and phone numbers.

The researcher developing a connection with the participant is

commonly seen as a critical skill when it comes to conducting interviews

with effectiveness (Bell et al., 2014). I established a working relationship

with the participants by sending them an email introducing myself, my role

in the community, and the purpose of the study. I sent an invitation to the

small business leaders asking them for their participation in the study and

explaining the study’s purpose, impact, and relevancy to small business

success.

Once they confirmed their interest, I sent the informed consent form.

Purposive sampling and snowballing are helpful procedures for

collecting rich and relevant research data. According to Cash et al. (2022),

seeking and selecting participants from a specific population is defined as

purposive sampling. Knott et al. (2022) suggested using purposeful sampling

to ensure participants can provide rich data when answering research

questions. Cash et al. described snowballing as a process where the

researcher asks individuals for other potential participants that meet the

research criteria. I used purposive sampling and did not find the need to use

snowballing.

Lenth (2001) suggested researchers ask themselves the question

concerning whether a too small or too large population size has ethical

implications. Vasileiou et al. (2018) argued that sample sizes vary given

their methodological and practical requirements. For this pragmatic

inquiry, I used six participants to help me answer the research question of:

What leadership strategies do small business leaders use to improve their

organizational performance? Yin (2018) highlighted that the sample size is

contingent upon the complexity and nuance of the research subject as well

as the depth and scope of the data gathered. Gentles et al. (2015) asserted

that in a qualitative study, achieving data saturation may require a sample

size ranging from four to 15 participants.

Data saturation is achieved when data collected from the participants

contains no new information. Determining the moment of data saturation

occurs when further analysis of additional data yields no new information,

themes, or coding categories (Fusch & Ness, 2015; Tran et al., 2016). Data

saturation is reached when the data collected from a specific sample size is

enough to address the research question and gathering data from more

participants may not be necessary to comprise a thorough investigation

(Braun & Clarke, 2016). I employed methodological triangulation with data

gathered from each participant in semistructured interviews as well as a

review of each participant’s company’s public website and other public

documents, such as financial reports, press releases, and figures. I interpreted

the participants’ responses and then analyzed their companies’ public

websites and other public documents shared to corroborate their interview

responses. Summaries of my interpretations of their interview responses

were emailed to each participant for validation of accuracy. When

participants confirmed my interpretations and no new information was

shared during this step, data saturation was obtained.

Data Collection Activities

In my role as the researcher, I served as the primary instrument for

data collection and analysis in this qualitative pragmatic inquiry. Moser and

Korstjens (2018) identified participant observations, interviews, and focus

group discussions as the most commonly employed methods for data

collection in qualitative research. To answer the research question, I

collected data from semistructured interviews using voice communications.

Semistructured interviews allow a researcher to be flexible when asking the

interview questions while still aligning the data collected with the study’s

focus (DeJonckheere & Vaughn, 2019). According to DeJonckheere and

Vaughn (2019), gathering unstructured data in the form of research

participants’ thoughts, feelings, and beliefs regarding a specific subject, will

allow the researcher to delve deeply into delicate and sometimes sensitive

matters (DeJonckheere & Vaughn, 2019).

I followed my interview protocol (Appendix) to ensure the same

process was used during each interview to collect the participants’ responses

to the interview questions. Fusch et al. (2018) emphasized the use of an

interview protocol guide as being beneficial in reducing biases and

misunderstandings between the researcher and participants. I gained

permission to audio record each interview to ensure I captured the

participants’ exact words for later interpretation. I also analyzed their

companies’ public websites to examine documents that shared and

corroborated the data points from the interviews to validate my interpretation

of the participants’ responses. The disadvantages of semistructured

interviews are researchers’ prejudices and incorrect data interpretations

(Buys et al., 2022).

I conducted a single interview session with each participant. While

doing more than one interview session for each participant may support the

collection of more details (Ruslin et al., 2022), the participants in the current

study were busy because they were directly involved in the daily

management of their business. It would have been difficult to schedule more

than one interview with the participants. I targeted an interview session of 1

hour because an hour is enough time to extract detailed information from the

respondents while preventing fatigue on the part of the researcher and

participants (see McGrath et al., 2019). I used an iPhone voice recorder

application to capture the participants’ responses and also took notes

regarding my observations. Each interview session was held in a comfortable

setting with minimal distractions (i.e., their secluded office location), where

no one could see who was participating in the study.

I informed the participants when the last interview question was

reached. Afterwards, I informed them that the interview was at an end and

asked them if they had anything more to add; no one had anything more to

add. By actively listening and valuing their input beyond the structured

interview questions, the research process was comprehensive, inclusive, and

respectful of the participants’ perspectives.

I described the process of member checking with the participants at

the end of the interviews. Member checking, alternatively referred to as

participant or respondent validation, is a method used to examine the

credibility and reliability of the findings (Birt et al., 2016). Welch et al.

(2014) highlighted the use of member checking by researchers to ensure the

validity and correctness of their interpretation of their participants’ responses

as well as to ascertain the intended meaning, thereby serving as an accuracy

assessment tool. At the conclusion of the interview session, I summarized

the interviews based on the audio recorded through Microsoft Word. I

identified and organized each participant’s information in Microsoft Excel.

When member checking, each participant was given 14 days to review my

interpretation of their responses. This gave the participants the opportunity

to check for any errors or mistakes. Participants were urged to make sure

their intended comments were accurately reflected in my interpretations.

There were no discrepancies reported, thus I did not make any changes

because my interpretations were accurate and confirmed by each participant,

allowing me to reach data saturation.

Interview Questions

1. What leadership strategies have you applied that have positively

impacted your organization’s performance?

2. What strategies do you use to ensure employees responded

positively to your leadership style?

3. How did you ensure your strategies would provide tangible

outcomes?

4. What tangible outcomes have you identified that were not included

in your strategy?

5. How did you use your strategic outcomes to evaluate your

leadership style?

6. What strategies did you use to ensure you minimize challenges to

improving organizational performance?

Data Organization and Analysis Techniques

The methodologies that researchers employ to organize data play a

pivotal role in the analysis of information and the presentation of research

discoveries (Yin, 2018). After completing the interviews, I input and

organized the data into Microsoft Word and

Microsoft Excel using NVivo 12 computer-assisted qualitative data analysis

software. Qualitative researchers utilize NVivo software to support them in

gathering, arranging, examining, visualizing, and presenting data (Allsop et

al., 2022). All electronic data were saved into a portable electronic storage

device. I kept the interview recordings, the storage device containing

electronic data, and my notes in a locked drawer inside my home office.

Data on my computer are protected by a password. I will keep the data safe

for 5 years, after which, I will permanently delete the recordings, clear the

storage device, and shred my notes.

Reliability and Validity

Reliability

Reliability refers to the dependability of the study (Denzin & Lincoln,

2017). This is achieved by showing that the research procedures are logical,

described in detail, congruous, and repeatable (Patton, 2015). I enhanced the

dependability of my study through data saturation, an interview protocol

(Appendix), interpretation of interview responses, and member checking of

data interpretation. I conducted member checking until I reached data

saturation. In qualitative research, data saturation is reached when the

researcher is satisfied with the quality of interview responses or the

responses fully reflect the perspective of participants and certain responses

start repeating (Sim et al., 2018). I also followed the interview protocol

(Appendix) for the interview session with every project participant to ensure

that the process was consistent with each project participant. All data

collected were voluntarily given.

After transcribing the interview audio recording, interpreting each

project participant’s response, analyzing other data using computer-assisted

qualitative data analysis software (i.e. NVivo) and generating themes, I

provided the participants with a copy of my interpretations for member

checking. Member checking serves as a benchmark for validity assessment

(Madill & Sullivan, 2018). The participants confirmed my interpretations

were accurate and no changes were needed. If there were changes, the

interpretations would have been updated and shared again to ensure

accuracy. The member checking process also supported the achievement of

data saturation.

Validity

Validity in qualitative research covers credibility, transferability, and

confirmability of the findings (Denzin & Lincoln, 2017). I used several

measures to achieve a reasonable level of credibility, transferability, and

confirmability for my study. By employing these measures, I increased the

rigor and validity of the research study. Credible research findings are based

on the perspective of participants (Denzin & Lincoln, 2017). Credibility is

attained through the researcher’s skills throughout the research process and

by gathering rich data (Patton, 2015). I aimed for credible research findings

by employing an interview protocol (Appendix), member checking, and

triangulation. An interview protocol ensured I followed the same process

with each participant. Interpretation of each participant’s response, use of

methodological triangulation to corroborate participants’ public websites

and archival documents to their responses to the interview questions, and

member checking ensured credibility of the data collected.

As an active instrument for data collection, I aimed to collect rich

data by using probing and follow-up questions when necessary; I ensured

prolonged contact by conducting an interview for about an hour to capture

in-depth responses; I applied intuiting, listened actively, and didn’t

interfere unless the responses were veering off topic.

Transferability refers to the applicability of the findings to other

situations or contexts by others, particularly future researchers (Denzin &

Lincoln, 2017). I enabled others to determine the transferability of my

research findings by describing and abiding by the data gathering and

analysis methods and strategies that aligned with my research design, such as

by uniformly applying the interview protocol and collecting data until data

saturation was reached. I also presented and discussed the findings in detail.

Descriptive detailed data allow others to comprehend the findings and decide

the transferability of the findings for themselves (Patton, 2015).

Confirmability ensures that the findings can be validated by others

(Denzin & Lincoln, 2017). I addressed confirmability through probing

questions during the interview, transcript review, member checking, and

methodological triangulation. I made sure to apply a uniform process for

each interview. I also fully documented the research process. Describing the

strategies, I used during data collection and analysis ensured that others

could verify the findings of my study. Confirmability of research findings

can be achieved by discussing reflexivity or the acknowledgement of the

researcher’s role in the study (Denzin & Lincoln, 2017). I also reflected on

my frame of mind and actions throughout the research process to curb biases

to allow me to accurately obtain participant perspectives and experiences.

Data saturation is reached when the data collected from a specific

sample size is enough to address the research question and gathering data

from more participants may not be necessary to compromise a thorough

investigation (Braun & Clarke, 2016). I interpreted the project participants’

responses, analyzed their public websites, and other documents shared to

corroborate their interview responses. The interpretation of their interview

responses was emailed to each project participant for validation that my

interpretations were correct. When project participants confirm or correct

my interpretations and no new information is shared during this step, data

saturation was obtained.

Transition and Summary

In Section 3, I described project ethics; the nature of the project;

population, sampling, and participants; and data collection activities.

Additionally, I proposed the data organization and analysis techniques,

reliability and validity and ended Section 3 with a summary of key points.

I will conclude with Section 4, presentation of findings, business

contributions and recommendations for professional practice, implication

for social change, recommendations for further research, and conclusion.

Section 4: Findings and Conclusions

Presentation of the Findings

The purpose of this qualitative pragmatic inquiry was to explore

leadership strategies small business leaders use to improve organizational

performance. Grounding the qualitative pragmatic inquiry with the

transformational leadership theory, I interviewed six project participants

using six open-ended questions (Appendix) aimed at answering the

overarching research question: What leadership strategies do small business

leaders use to improve organizational performance? Each participant’s

demographic information is depicted in Table 1.

Table 1

Project Participants’ Demographic Information

Participant ID Years of

experience

Business type Business title Age

P1 6 Cosmetology Owner 37

P2 4 Commercial Program

radio Director

P3 1 Entertainment

Pr company

esident/CEO 41

P4 6 Architectural

company

Associate

managing

director

P5 19 Attorney Owner 48

P6 6 Restaurant Owner 39

P1 was a small business owner who was the overseer of a local

barbershop and salon. They are an avid traveler who enjoys spending time

with family in Florida. They have operated their own company for 6 years

and have a bachelor’s degree in communication and a barber license

issued by the State of Illinois.

P2 was a college admissions representative before going into their

current career in commercial radio. They were the program director for a

local radio station, servicing over four counties. They were also a co-owner

of an event planning management company. P2 has a bachelor’s degree in

journalism.

P3 was the president and chief executive officer of an entertainment

company. They had 12 full-time employees. P3 provides consulting

services and produces local media segments aimed at providing exposure

to local entertainers and models. P3 has a bachelor’s degree in business

administration and also attended a local university to receive their master’s

in business administration.

P4 was the associate managing principal for a growing architectural

firm. P4 has a bachelor’s degree in applied science. They were previously a

real estate agent for 6 years before transitioning into their new profession. P4

enjoys spending time with their family and coaching local area youth sports.

P5 was a criminal defense attorney specializing in family worker’s

compensation, family law, and criminal cases. P5 has owned and operated

their law firm for the 19 years and has several other local businesses,

including a restaurant and a grocery store.

P6 was the owner of two restaurants in the local area. P6 had over 6

years of experience in the restaurant industry and enjoys providing services

to the community through their restaurants by encouraging community

groups to host activities and other sessions at the restaurants.

I thematically analyzed the data using the NVivo software, Version

13, an application that helped structure and organize the codes into four

general themes. I coded participants as P1, P2, P3, P4, P5, and P6. The main

goal of this qualitative pragmatic inquiry was to identify and explore the

leadership strategies the small business leaders used to improve their

organizational performance. The emergent themes from the thematic data

analysis are depicted in Table 2. The table is organized to show the

frequency of the attributes shared by the participants that aligned with the

key constructs of transformational leadership. Individualized consideration

was the most frequently described attribute by the participants. Within the

following subsections, I discuss the four emergent themes in detail.

Table 2

Emergent Themes From Data Analysis

Intellectual

stimulatio

Individualized

consideration

Inspirationa

motivation

Idealized

influence

Number of

times the

participant

mentioned this

theme

23 26 25 24

Within the following subsections, I discuss the four emergent themes

in detail. I also include an explanation of how the findings from the current

study confirms or disconfirms the literature review findings and I provide

relevant literature found since the initial review related to the topics of

intellectual stimulation and organizational performance, individual

consideration and organizational performance, inspirational motivation and

organizational performance, and idealized influence and organizational

performance.

Theme 1: Intellectual Stimulation

Intellectual stimulation refers to the ability of leaders to encourage

followers to challenge their beliefs and values as well as those of the leader

and the organization (Bass, 1985). According to Bass (1985), intellectual

stimulation has to do with the leaders stimulating their employees to be

innovative and creative using their problem-solving skills to view challenges

from different vantage points. In this construct, emphasis is placed on

fostering an environment where creativity and innovation are encouraged

and celebrated. Leaders who excel in intellectual stimulation provoke

followers to question assumptions, reframe problems, and approach old

situations in new ways (Bass, 1999).

The conceptual framework of transformational leadership has a

correlation to the importance of aligning leadership styles with

organizational culture and individual ambitions. During the initial literature

review, I found the work of Iris et al. (2022) and Jiatong et al. (2022) who

emphasized how transformational leadership had a positive impact on the

work culture. Since the initial literature review, I found the study conducted

by Razak et al. (2022) who reported a relationship between leadership and

culture but with greater emphasis on motivation and organizational

performance. In the current study, P1 illustrated how fostering a culture of

responsibility, mentorship, and goal-oriented feedback helps develop a sense

of identity and is useful for motivating team members. An example of

aligning leadership styles with organizational culture was evident in the

following statement from P1:

I value having someone to ensure I am on track and meeting my goals.

So I try and treat others the way I want to be treated. I want an

organizational culture that understands the importance of assisting

others. I hold staff meetings that are focused solely on the benefits of

assisting their coworkers. This has continued to define our work

culture and employees began to treat each other like family. When

employees view their coworkers like family, I have seen more open

communication and intellectual exchange, which can lead to new

ideas and approaches.

In the initial literature review, I also discovered Garhy et al. (2019)

who found that transformational leadership indirectly impacted culture but

not in an innovative manner. This finding may warrant additional research

because of the geographic location and the participants of the study. Garhy

et al.’s findings do not disconfirm the findings of the current study but rather

require additional research to confirm or disconfirm.

P2 noted the importance of meticulous planning, strategic

organization, and effective delegation as cornerstones for achieving

operational efficiency, optimal resource utilization, and overall success.

Leaders who identify issues early on, prioritize key focus areas, and align

resources, maximize their chances of fostering effective organizational

performance. Similar to the initial literature review findings of Idris et al.

(2022), P2’s insights highlight the pivotal role of strategic foresight and

decisiveness in navigating the complexities of the business landscape. P2

shared their insight by stating, Communication, organization, and

preplanning are the pillars of my leadership style. As soon as an event or

promotion is over, I start putting the basic planning pieces together for the

same event next year. This helps alleviate any potential issues and

completes many of the minor steps needed in the project. I teach this

process of planning with my employees, and it has increased our overall

bottom line and allowed us to operate more efficiently.

P3 explained the pivotal role of communication and the assignment of

challenging roles, ensuring employees feel directly responsible for the

outcomes. Leadership provides inspiration and gives teams the resources to

be productive and have high morale (Garcia & Russo, 2019). Encouraging a

culture of responsibility empowers employees to take ownership of their

tasks and decisions, and this autonomy challenges them to think critically

and independently, stimulating intellectual development. P3 indicated, I am

always available to my employees and make sure they have the tools and

resources to be successful. I enjoy trusting them and giving them

responsibilities that develop their skills. I love seeing their faces when they

finally figured out a difficult task. However, before giving them a difficult

task, I am sure to communicate all aspects of the tasks and how to get it

done.

P6 emphasized the importance of hands-on experience and by-

example leadership. According to Sandybayev (2019), leading by example

and building the capability of the staff is an essential element of

transformational leadership. Hands-on leaders are directly involved in

problem solving, allowing them to model critical thinking and innovative

problem-solving strategies to their team. By demonstrating these skills in

action, leaders solve immediate issues and teach their team members

valuable intellectual skills, encouraging them to think critically and

creatively. Gilbert and Kelloway (2018) reported that a transformational

leader’s motivation is associated with subordinates’ positive perception of

the leader as active-constructive. P6 stated, Being a hands-on owner and

operator is essential to the business’s success and central to organizational

performance and employee engagement. I want to inspire and motivate my

employees to complete tasks that I have given them. By being hands on, I

am not just showing them how to do it or providing instructions. I will do the

task with them to hopefully get them feeling confident to do it.

Theme 2: Individualized Consideration

Individualized consideration is a form of leadership that is evident

when the leader’s attention is given to the needs of their employees on a

one-on-one basis (Bass, 1985). Individualized consideration involves

fostering a work environment that is both diverse and supportive, one in

which the unique qualities of everyone are acknowledged and valued (Bass,

1985). Leaders that practice individualized consideration encourage two-

way communication, listen actively, and consider the followers’ feelings

and perspective in decision-making processes (Steinmann et al., 2018).

Communication is linked to individualized consideration, a cornerstone of

successful leadership, provided employees respond effectively to different

leadership styles (Bass, 1985).

The semistructured interviews revealed diverse participant

perspectives, offering a variety of the participants’ practices for empowering

their employees to ensure employees felt acknowledged; valued; and as a

result, became actively engaged. Leaders develop an environment conducive

to personal growth, team cohesion, and enhanced organizational outcomes

by prioritizing communication, accountability, empathy, and inclusivity, and

these practices align with the individualized consideration construct of

transformational leadership.

Jiatong et al. (2022) found that when an employer acknowledges

employees’ contributions, it makes employees feel cared for and responsible,

creating a caring culture at work where workers feel valued and respected,

which can often increase engagement. Team bonding activities are designed

to bring employees together, fostering a sense of unity and collaboration

(Bass, 1985). When these activities are planned to acknowledge and

incorporate individual team members’ diverse preferences, strengths, and

development needs, they reflect individualized consideration. These

approaches enhance team cohesion while also acknowledging each

member’s unique contribution to the organization, boosting overall

engagement. P1 stated,

Anytime I see them doing something or they are staying as long as I

am, or they are moving like [sic] how I move; I make sure I let them

know I see that. We have regular social outings where they bring their

spouses and children. We enjoy being around each other, we laugh,

we have a good time. I realized soon that this was having a direct

impact on my organizational culture. We began to look at ourselves as

family and not just another coworker.

P1 disclosed the importance of selecting influential team members by

focusing on the inclusion and appreciation of each employee. This

leadership strategy motivates employees to excel and contributes to the

team’s collective success, embodying the essence of individualized

consideration, a key construct of transformational leadership.

P3 ensured that the organization’s leadership was aligned with the

organization’s culture by monitoring employees’ attitudes and moods to

realize the cultural dynamics and how they impact organizational

performance. According to Greenleaf (1970), transformational leadership

takes place when a leader prioritizes the needs and development of the

followers above anything they need themselves. This strategy displays a

leader’s commitment to continuous improvement and inclusivity. P3 stated,

I look at the company culture and compare that to the overall goals of the

company; we see a detailed approach to leadership evaluation that looks at

organizational success because of individuals’ behaviors being aligned with

our collective goals. I want to make sure we have a company that values the

needs of others, both employees and our clients.

P2 discussed the issue of accountability and autonomy, which are two

factors for employee individualized consideration: employee engagement

and the ownership of tasks. According to Howard et al. (2019), employees

who are allowed to set their own deadlines and work at their own pace tend

to be more responsible because they feel empowered through the ownership

of their tasks, which, in turn, brings autonomy and responsibility. P2 stated

that, “Instead of me saying, ‘I need this by April 15th,’ I say, ‘when can you

get this to me by?’ That changes the dynamics and makes them take

responsibility for the outcome.” Again, this provides an example of

individualized consideration along with intellectual stimulation, which are

two key constructs of transformational leadership. Henley (2022) found the

practice of leadership creates a framework based on the goals and deadlines

of individuals to promote self-accountability and individual growth.

P5 discussed developing a workplace where team members interact

with trust and respect. According to Prayogi and Lesmana (2021), leaders

involved in various duties and keeping a good attitude tend to act

professionally and demonstrate commitment. Through this, an organizational

culture is developed and characterized by mutual respect and accountability

where employees are appreciated after a job well done and, therefore,

contribute to the organization’s success (Mkheimer, 2018). P5 declared,

I help take out the garbage, I help wipe down toilets, I help answer

the phone. Moreover, if I am the boss doing it, there is no excuse for

you not doing what your work obligations are. Regardless of what

happened at home or in my personal life, I make sure that this is a

safe environment here for them and that I do not bring my problems

to work. I had an employee detail [sic] that she was having a rough

day due to some personal family issues they were having. She let me

know that words couldn’t describe the feeling she had when I came

over and helped them out. This creates respect and is something that

I want my employees to have with one another.

The practice of appreciating employees and having mutual respect

directly aligns with the construct of individualized consideration.

According to Siangchokyoo et al. (2019), when leaders take part in routine

tasks, it makes employees feel valuable and motivates them to do an

excellent job. Recognizing and celebrating individual achievements

motivates employees and helps them understand how their work contributes

to the organization's performance. During the initial literature, the works of

Siangchokyoo et al. showed a correlation between transformational

leadership, the behavior of others, and the performance of the organization.

P6 was adamant that communication was a critical leadership tool that

was clear, respectful, and all-inclusive. Using cohesive communication, team

members would act as a team and show respect to each other. As discussed

in the literature review, Cohrs et al. (2019) found that a group can easily

align itself through regular organizational communication. Thus, each

member of the team can feel essential and valuable. By implementing

cohesive communication and inspiring mutual respect, the leader creates a

favorable environment for individuals who strive to succeed while

contributing to the organizational goals (Cohrs et al., 2019). P6 stated:

I set up staff meetings. I make sure that all my employees are in a

group chat where I express my wants and expectations, and I

execute it in a way where I make sure everybody is on the same

page. Oftentimes, I use the word overcommunicate. I will

overcommunicate my goals and specific tasks I need done. This

form of communication has somewhat spread throughout the

organization. My employees now use this form of communication

among each other and even me.

P3 confirmed the importance of communication and availability as

essential leadership qualities. By implementing an open-door policy and

inviting suggestions from the team, the project participant provides the

platform for discussion and interaction. On this basis, an atmosphere of

openness, trust, and mutual respect is established in the workplace, meaning

employees can speak their minds and express their thoughts (Fulmer &

Ostroff, 2017). P3’s employees have access to their leader because they “did

not limit them to times when they could reach out to them.” Similar to

Burawat’s (2019) study, this practice shows the owner's commitment to the

uniqueness of the employee and the care for their welfare. This aligns with

the key construct of individualized consideration.

P1 discussed client relations and the importance of effective

communication. This insight illustrates the necessity of open lines of

communication, not only as a courtesy but as a cornerstone of maintaining

and enhancing client trust and loyalty. Establishing positive business traits

that correlate with each individual client by offering positive client feedback

increases organizational performance. P1 explained,

Clients do not appreciate being kept waiting. It is essential to

proactively inform clients if there are any delays of appointments. I

emphasize the value of transparency and effective communication to

ensure client satisfaction. This has increased our overall

organizational performance by increasing our number of clients.

P2 placed emphasis on the importance of accountability and

independence as critical elements that engage employees in their work. As

demonstrated by Al-Ahmadi and Kasztelnik (2016), employees can feel

empowered by developing their deadlines and taking control of the work,

which is often the first step towards autonomy and coresponsibility. This

parallels the principles of self-determination theory, where the premise is

that people feel internally motivated when they view what they do as having

nothing constraining them from the outside (Yalabik et al., 2017). This

leadership strategy allows employees to set their own goals and challenges,

facilitating learning and development opportunities that cater to their

individual goals and capabilities. This aligns with individualized

consideration because each employee will likely have different goals and

challenges.

P4 revealed the idea of interactive leadership in developing skills

and engaging employees. As found in the literature review, Knezović and

Drkić (2020) used a similar strategy and found it increased the task speed

and encouraged a positive and cohesive atmosphere of collaboration and

comradery between team members. This approach fostered a collaborative

environment where employees felt supported and valued, which is a central

concept to idealized influence. P4 stated,

I try to make work and daily tasks more of an interactive process

where I work with any staff member to execute any task, I have given

them. By that pattern, the employee will pass skills and techniques

and encourage staff members’ professional growth by being

collaborative and a role model. It also allows me to work one-on-one

with each employee. Allows me to gain an understanding of each

employees’ strengths and weaknesses.

P2 discussed the necessity of task clarity for efficient execution. This

small business leader empowers employees to make informed decisions and

aligns their efforts toward achieving common organizational goals by

providing detailed instructions and narrowing down broad objectives.

Thereby stressing the consequences of ambiguity and the significance of

clear, concise directions in task delegation. This leadership strategy aligns

with individualized consideration by acknowledging that each employee has

unique capabilities and providing them with the resources and information

needed to perform their roles effectively. This way empowers employees to

contribute to organizational performance, enhancing their sense of value

and engagement. P2 discussed,

Lack of clear direction can lead to tasks being started but completed

with disappointing results. This is where effective communication is

important. How can I expect to receive the results I want if I fail to

communicate. This has led to a more efficient culture and makes the

organizational goals easier to obtain.

P3 employs evaluation and delegation tools to minimize hurdles and

promote the organization’s progress. Delegating tasks and responsibilities

to the best expertise will help leaders develop a culture of making decisions

independently (Razak et al., 2022). The continuous monitoring and

resolution of issues convey a sense of willingness to pursue change and the

desire to modify an approach that changes over time. P3 said, “Being able

to see people for their strengths and delegating certain jobs to the correct

people. I believe that is a strong key point behind it, detailing how

important it is to put the tasks into the hands of individuals who are best

capable of doing them.”

Theme 3: Inspirational Motivation

Inspirational motivation is a leader’s ability to inspire and motivate

followers. Bass (1985) described it this way and added that inspirational

motivation can help the followers achieve higher performance levels and

commit to a shared vision for the future. An example of this is from P2’s

perspective that revealed the critical role of openness to feedback and self-

reflection in leadership. P2 found that through introspection, small business

leaders can give themselves suggestions for improvement being open to

feedback and self-reflection. This is evidence that leaders can develop their

personal and organizational leadership skills while working towards the

organization's vision.

P3’s perspective highlights the synergistic relationship between

leadership and mentorship, underscoring leaders' influential role as guides

for their employees. This approach allows business leaders to demonstrate

positive behaviors and extend empathy and warmth (Baskarada et al.,

2017). P3’s strategy aligns with inspirational motivation, as leaders who

lead by example effectively inspire their followers by showing what is

possible through dedication and hard work. P3 stated,

I was able to lead by example, and the employees responded to that. I

became more of a mentor to certain employees. They wanted to reach

the level of success that I have and asked me how to do it. I make

sure to let them know that it is a process, and it will not happen

overnight. I have seen this make employees more receptive to advice

and have watched it transform them from employees with specific

roles to employees that has numerous roles that involve leadership.

They become inspired and motivated to take on new tasks and

responsibilities.

P5's provided their insights concerning the importance of adaptability

in leadership, especially the challenges and disruptions that aroused during

the COVID-19 pandemic. Similar to the initial literature review findings of

Bor (2020), who found that effective small business leaders avoid

organizational complacency by being lifelong learners who are quick to

adapt and adaptable in choosing the best management techniques. This

adaptability underscored the essence of agility and resilience as

foundational elements for sustaining organizational robustness and

adaptiveness (Sawaean & Ali, 2020). This adaptability was closely related

to transformational leadership, which empowers leaders to cultivate and

elevate their team’s ability to navigate and thrive amidst volatile

environments (Puni et al., 2018). P5 mentions, “Adjustments were needed,

such as when COVID-19 came. That was not in anyone’s strategy as a law

firm.”

P1 discussed practical leadership qualities that can significantly

influence employee behavior and transform organizational performance. As

a small business leader, P1’s leadership skills have individuals eager to

work for him despite the lack of available positions. P1 acknowledges the

essential role of being a community leader and how it relates to employee

satisfaction. P1 shared how they initially see things with this description of

their experience,

I see firsthand that my leadership is paying off because they all want

to come and work for me, even though I do not have any space for

them. They mention the work that I do in the community and want to

get involved. We are one of the few businesses that provide their

services for free to the underprivileged and underserved. The problem

is, I don’t have enough space to hire everyone.

Leaders that exhibit inspirational motivation another key construct

of transformation embodies certain characteristics that are motivating to

employees. This key construct of transformational leadership when

practiced by leaders highlights the importance of flexibility, adaptability,

and the capacity to respond promptly to external shifts or challenges

(Manzoor et al., 2019). This perspective reinforces that transformational

leadership is about directing and enabling an organization to pivot and

prosper through uncertain and unexpected times.

Theme 4: Idealized Influence

Idealized influence is another key construct of transformational

leadership and the participants’ responses to the interview questions align

with it. This key construct is an example of how leaders act as exemplary

role models for their followers and tend to have positive influence on them

(Bass, 1985).

P4 discussed how one can go beyond the intended advantages of

relationshipbuilding in the business environment. Organizations can build

on their investment in developing critical relationships by learning more

about their client's interests and needs. Consequently, they can better meet

their requirements more efficiently and accurately (Niken et al., 2022). This

is consistent with literature emphasizing the importance of customer-centric

and customer relationships to succeed (Cary, 2020). This leadership strategy

aligns with idealized influence by showcasing how leaders can inspire trust

and respect through genuine interest in and commitment to client welfare

beyond transactional interactions. P4 stated,

For instance, I stated earlier that by implementing the leadership

strategy of client relationships, we have learned that we get greater

returns when we have that relationship with a client due to repeat

business, as well as opportunities to do more profitable, more

lucrative business with clients who we have a relationship with

because they trust you more.

Evaluating P2’s leadership style reveals that clear communication,

organizational skills, and effective delegation are advantageous. P2 actively

seeks employee feedback, using their responses to refine and improve their

leadership approach. This practice aligns with the principles of

transformational leadership, a concept where leaders empower their

followers to take initiative and assume responsibilities (Bass, 1985). This

behavior exemplifies idealized influence by showing that effective

leadership is responsive and considers the perspectives and needs of

followers. P5 mentioned, “It allows me to take an inner look at my

leadership style and adjust what needs to be adjusted.”

P5 discusses the transformative potential of acknowledging and

learning from failures within the leadership journey. This introspective

approach is related to the value of self-assessment in leadership, where

recognizing and addressing one’s shortcomings becomes a pivotal learning

moment. According to Amegayibor (2021), such a practice emulates

authentic leadership characterized by vulnerability and humility. P5

mentioned,

“I concentrate on the failures,” suggesting a proactive stance toward

leadership development. Leaders who embrace and learn from their failures

motivate their followers to do the same, thereby creating an environment

where innovation, risk-taking, and creativity are encouraged.

P6 characterizes the evolution of leadership as an interactive process

of experimentation, where implementing solutions and learning from

mistakes are integral to their development. This journey of trial and error, as

described by P6, is about navigating challenges and the critical ability to

adapt and recover from setbacks. This approach underscores leaders' need

for agility and flexibility, which are increasingly vital in rapidly changing

and uncertain business landscapes (Siangchokyoo et al., 2019). P6’s

reflection, “I would just feel like it has been trial and error,” emphasizes the

ongoing cycle of action, feedback, and adaptation that characterizes effective

leadership. This process allows small business leaders to continuously refine

their strategies and approaches, leveraging real-world experiences as

invaluable lessons for improvement and growth.

The study’s findings confirm the existing literature on

transformational leadership and effective business practices for enhancing

organizational performance in small businesses. The emergent themes of

intellectual stimulation, individualized consideration, inspirational

motivation, and idealized influence reflect all the essential aspects of the

transformational leadership theory. However, the findings shed light on the

role of contingent environmental factors and the interventions that should be

in place to adopt the transformational leadership approach successfully.

Intellectual Stimulation and Organizational Performance

The project participants’ responses confirm that environments

conducive to learning consistently offer the chance for innovation, critical

thinking, and effective problem-solving (Ahmed & Shafiq, 2018; Kowo

& Akinbola, 2019). For example, the emphasis on intercultural relations

to build a culture aimed at achieving goals, which includes mentorship

and taking responsibility, mirrors the essential principles for empowering

individuals (Kowo & Akinbola, 2019).

In addition, these findings broaden the body of knowledge by

identifying specific situational variables that facilitate the utilization of

intellectual stimulation strategies by small businesses. Therefore, a

comprehensive analysis of the challenges P2 overcame in their small

business, such as situational variables related to thorough planning,

innovative organization, and proper delegation, was evidence that small

business owners face unique resource scarcity and operational complexity in

their day-to-day interactions. Similarly, Idris et al. (2022) emphasized the

importance of making decisions that are both forwardlooking and definitive

in the context of the fast-paced business world, highlighting the essential

reasoning behind such choices.

The study findings also bring to the forefront the necessity of

communication and teamwork as key factors in intellectual stimulation, as

happened to P3, who engaged people with challenging responsibilities and

elevated employee ownership. This matches with the assertion made by

Garcia and Russo (2019) that effective leadership involves equipping team

leaders with the necessary resources and motivation to enable their team to

work efficiently and stay motivated.

Individualized Consideration and Organizational Performance

The theme of individualized consideration resonates with the

transformational leadership literature’s emphasis on acknowledging and

attending to individual followers’ needs, abilities, and aspirations. The

strategies of the participants included but were not limited to the P1’s

preference for group bonding activities that embrace diversity and P2’s

promotion of autonomy and accountability agreed with some of the works

found during the initial literature review (Jiatong et al., 2022; Siangchokyoo

et al., 2019). According to Jiatong et al. (2022), individualized consideration

is identified as the driver and manager of employee performance and

engagement. Nevertheless, the findings reinforce the existing literature on

this topic by demonstrating the significant opportunities that small business

leaders encounter while executing individualized consideration. P5

emphasizes the importance of creating an atmosphere of mutual respect and

accountability, and P6 emphasizes the necessity of having effective

communication in the same tone. In short, this shows the importance of

fostering a culture where everyone feels his or her part is valued to express.

This is in congruence with the belief of Siangchokyoo et al. (2019) that

leaders who practice effective communication in their daily work and show

appreciation to the workers can motivate them and results in organizational

accomplishments.

The study's findings are consistent with the existing literature in that

leaders who focus on giving personal attention and care to their employees

can enhance organizational outcomes. However, the study findings are

evidence that small business leaders’ approach to individualizing

consideration is more complex than previously thought. For instance, P3’s

stance toward open communication and welcoming team members to

express their ideas goes with more democratic leadership than the

authoritative styles commonly associated with large companies. This points

out the necessity for leaders of small businesses to adopt a supportive and

collaborative manner of leadership to fit the needs of both the employees and

the organizational system.

Inspirational Motivation and Organizational Performance

The theme of inspirational motivation aligns with the transformational

leadership literature. The researchers I found during the initial literature

review placed emphasis on leaders' ability to inspire and motivate followers

to achieve higher performance levels and commit to a shared vision

(Chukwu, 2021; Gilbert & Kelloway, 2018; Khan et al., 2020; Meng, 2016).

The project participants' strategies, such as those used by P3, leading by

example, and serving as a mentor, and P5, who used adaptability as a guide

during the difficulties of the COVID-19 pandemic, are some of the ways that

the findings confirm additional literature researchers’ work and how they

recognized leadership as an inspirational motivation for moving people's

engagement, resilience, and adaptability for organizational performance

success (Al-Ahmad & Kasztelnik, 2021b; Chumphony & Pitipiroon, 2019;

David Pillai, 2022; Kocherbaeva et. al., 2019). This compatibility is

evidence that motivational inspiration is among the essential key elements in

building a resilient, motivated, and high-level performing workforce,

irrespective of the type of organization or the work context. Small business

leaders personify the organizational values and behaviors they hope to foster

in their teams and simultaneously show they can adapt and change in

challenging circumstances. Such leaders effectively inspire and motivate

their teams, resulting in organizational success.

This qualitative pragmatic inquiry findings have further increased

knowledge and provided a deeper understanding of transformational

leadership by highlighting the various types of small business leaders who

employed inspirational motivation within their business. For example, the

mention of openness to feedback and self-reflection by P2 stressed the

importance of lifelong learning and self-enhancement to appeal to the hearts

and minds of their employees. A connection is made here with the research

literature on learning and training (Bor, 2020; Chukwu, 2021; Gorecki,

2021; Hung, 2022) and with authentic leadership. According to Amegayibor

(2021), authentic leaders consider vulnerability and humility the main

qualities of trust creation and positive culture development.

One of the study's findings differed from the existing researchers’

studies (Chukwu, 2021; Gilbert & Kelloway, 2018; Khan et al. 2020; Meng,

2016) concerning motivation because the participant described the

surrounding context determining the small-scale inspirational motivation

level. P6 expressed how they viewed leadership as experimentation and

adaptation with no hierarchical order. This reinforces the importance of

small business leaders embracing agility and flexibility to maneuver through

the uncertainties associated with their business, with the understanding that

this conforms with the organizational resilience theory. Small businesses

exist in a dynamic and resource-scarce environment, which calls for leaders’

readiness to assess and recreate their strategies constantly.

A strategic plan for success is a blend of an experimental mindset,

continuous learning, and unlearning. This way of being able to respond, will

not only protect leaders from failing in the face of upcoming challenges, but

is known to be the source of inspiration for their employees, which is an

indicator of resilience, adaptability, and commitment to continuous learning.

Idealized Influence and Organizational Performance

Idealized influence the final construct of transformation leaderships is

also critical for the success of organizational performance. The researchers

from my initial literature review emphasized how leaders serve as role

models who earn followers’ admiration, trust, and respect through their

actions, ethics, and dedication to shared goals and values as found by Bass

(1985). This is substantiated by the methodologies of the participants: P4,

whose strategy comprises interactional leadership and mastery of essential

abilities, and P1, who focused on community involvement and employee

satisfaction. This aligns the literature (Al-Ahmadi & Kasztelnik 2021a;

Chukwu, 2021; Puni, 2018) on idealized influence as a method for

developing commitment, trust, and organizational effectiveness. Idealized

influence impacts corporate culture and the desire among followers to hold a

high degree of respect and pride.

When a small business leader embodies the values, they wish to

instill in their team and demonstrates a sincere dedication to the growth of

team member, both personally and professionally, they can foster a

workplace characterized by cooperation and a strong team-oriented ethos.

Nevertheless, the study's findings might augment existing researchers’

literature (Al-Ahmadi & Kasztelnik, 2021a; Chukwu, 2021; Puni et al.,

2018) and or fill the gap in literature related to idealized influence because

the participants revealed the signature strategic patterns of small business

leaders while exerting empowering influence on employees.

P2’s effort at actively listening to the employees' feedback to perfect

their leadership style showcases the need for humility and betterment

throughout the realization of idealized influence. Indeed, this is in line with

the work on servant leadership. According to Bennis et al. (2002), servant

leadership occurs when one does not see the leader's interest ahead, but

instead, one sees the leader’s desire to help others develop.

An additional finding of this study differs from other aspects of

existing researchers’ literature (Al-Ahmadi & Kasztelnik, 2021a; Chukwu,

2021; Puni et al., 2018) about the contextual factors that serve as the basis

for idealized influence strategies for small businesses. P3 put forward the

concept of leadership, which involves congruence in organizational culture

and employee attitudes and differs from the classic, top-down model often

associated with larger organizations. This helps small business leaders

develop a more coherent and participatory leadership style as they embrace

the different organizational dynamics and perspectives, thus aligning with

the similar implications in the literature on organizational culture and

climate (Ahmed & Shafiq, 2018). Small businesses value the tight-knit and

collaborative nature of the workplace. Thus, it is crucial to lead by example

and anticipate the diverse thoughts as well as attitudes of individuals

(Anderson, 2010). The approach should align with the organization's culture,

with a desirable form of leadership in mind.

Implications for Transformational Leadership Theory and Business

Practice

This qualitative pragmatic inquiry study findings align with premise

and key constructs of the transformational leadership theory, demonstrating

through semistructured interviews that the theory is applicable and relevant

in the context of small businesses. The strategies reported by project

participants across the four constructs confirm that transformational

leadership can improve organizational performance.

Additionally, the findings emphasize the need to adapt and refine the

theory of transformational leadership to better address the unique challenges

and benefits faced by small business leaders. Enhancing the emphasis on

creativity, flexibility, and ongoing improvement, which are essential

elements of transformative leadership in small businesses, calls for a more

dynamic and iterative approach to understanding the processes of

transformational leadership.

These findings suggest that be acknowledging specific contextual

details and necessary situational adjustments, small business leaders can

tailor their leadership approaches. This customization helps leaders

effectively address unique challenges and seize opportunities that typically

affect small businesses, such as limited resources, operational complexities,

and the need for agility and flexibility to manage uncertainty and change. By

adopting the strategies of a transformational leader identified in this

research, small business leaders can set their organizations on a path to long-

term success. This involves fostering a culture that leads by example,

motivating employees to commit to their roles, and encouraging innovation

aimed at achieving excellence and high performance.

The key findings from this qualitative pragmatic inquiry enhances the

understanding of how effective leadership strategies improve organizational

performance in small businesses. By applying transformational leadership

theory to real-life situations faced by small business leaders, this qualitative

pragmatic inquiry study has in its content empirical support for the

transformational leadership conceptual framework across various

organizational contexts. The identified themes of intellectual stimulation,

individualized consideration, inspirational motivation, and idealized

influence are pivotal in boosting employee engagement, innovation, and

overall organizational performance. Additionally, the findings contribute to

the existing literature by exploring the specific challenges, opportunities, and

contexts that shape leadership strategy development in small businesses,

thereby expanding knowledge in this area.

Business Contributions and Recommendations for Professional Practice

The findings of this research study contribute to the existing body of

knowledge on transformational leadership and its application to small

businesses. The research findings emphasize the fact that the four

leadership constructs of transformational leadership – intellectual

stimulation, individualized consideration, inspirational motivation, and

idealized influence – can be applied to any small business to achieve high

organizational performance.

Small business leaders use these approaches to build a culture that can

foster innovation, employee engagement, and high performance within the

organization. Through intellectual stimulation, leaders can generate an

environment in which employees engage in critical thinking, problem-

solving, and developing novel ideas (Elfeky et al., 2022). A person-centered

approach allows leaders to recognize and address employees’ unique needs,

enhancing their engagement and satisfaction. Inspirational motivations help

leaders articulate their vision and energize their employees to achieve peak

performance. Beyond motivating their team, leaders who display idealized

influence also become role models. Employees admire and respect leaders

who demonstrate ethical behavior and commitment to common goals.

Implications for Social Change

Implications for social change from this qualitative pragmatic inquiry

study emphasizes the importance of effective leadership in creating

successful and sustainable small businesses, which are essential to local

economies. Small businesses contribute significantly by creating jobs and

stimulating economic growth. This study has shown the importance of

skilled leadership for positive social change. By utilizing the key constructs

of transformational leadership, small business leaders can influence

organizational performance that is cooperative and healthy, which in turn

influences workers’ well-being and job satisfaction (Liyanage, 2020).

A workplace that fosters morale and support is essential to

employee happiness and can enhance the quality of their lives. Employees

who feel valued and respected often experience greater job satisfaction

and achieve a better work-life balance, which contributes to their overall

well-being, both mental and physical. These positive effects can extend

beyond individual employees, positively influencing their families and the

wider community.

The capital generated by small businesses can be reinvested locally,

boosting community initiatives, and fostering societal improvement. A

thriving business community can support programs, charities, and

educational institutions with resources (Atnafu & Balda, 2018). This

investment creates vital employment opportunities, helping to stabilize and

grow local economies. Local businesses can significantly impact society by

supporting socio-economic and environmental sustainability efforts to

alleviate poverty, increase access to education, and conserve the

environment. This qualitative pragmatic inquiry study gives small business

leaders insights into how effective leadership can drive organizational

success and facilitate further social change. By adopting transformational

leadership approaches, leadership in small businesses can foster a culture of

empowered employees, creativity, and social awareness, which contributes

to the overall betterment of the communities they serve.

Recommendations for Further Research

The limitation indicated in Section 1 remained the same toward the

end of this qualitative pragmatic inquiry. The study of leadership strategies

across different industry sectors shows their effectiveness varies

significantly. This variability is because of their unique situational factors

such as market dynamics, cultural contexts, and legislative environments

that can influence the performance of these strategies. The insights from this

study could be incorporated into business leadership training, enabling small

business leaders to adapt their leadership styles according to their specific

operational circumstances.

Studying how organizational culture and workplace demographics

(including age, gender, and educational level) influence the adoption of

transformational leadership in small businesses could yield critical insights.

By understanding the various factors that affect how employees respond to

and engage with transformational leadership practices, leaders can tailor

their approaches to better align with their team’s needs. This alignment

could significantly enhance the impact of their leadership on organizational

performance.

Researching the long-term performance and sustainability of small

businesses that adopt a transformational leadership approach, with a focus

on organizational outcomes would provide valuable strategic insights. This

research could measure the impacts of such strategies, accounting for

external factors such as organizational growth, market changes, and shifts in

employee demographics. As a result, this research could offer actionable

recommendations to small business leaders aiming for sustained success.

Emphasizing the potential challenges and obstacles in adopting

transformational leadership traits and seeking solutions for these issues will

assist leaders in effectively implementing these strategies. Concerns such as

resistance to change, limited resources, and cultural barriers can impede the

adoption of transformational leadership strategies. However, small business

leaders can develop mitigation plans that allow them to proactively address

these challenges and enhance the success of transformational leadership

within their organizations.

Conclusion

This qualitative pragmatic inquiry explored small business leaders’

strategies to enhance organizational performance. The findings confirm

the effectiveness of transformational leadership in increasing employee

engagement, fostering innovative thinking, and improving overall

organizational success in small businesses. Small-scale business leaders

can create a positive and supportive environment by encouraging

intellectual stimulation, individualized consideration, inspirational

motivation, and idealized influence, small-scale business leaders can

create a positive and supportive environment. This environment allows

employees to grow, innovate, and commit to achieving common goals.

The findings of this research are essential for expanding our

understanding of transformational leadership practices within small

businesses. Additionally, this study provides valuable recommendations

on leadership strategies for small business leaders aiming to enhance their

business success. While these findings are significant, further research is

strongly encouraged to address potential limitations and build upon the

current results. There are still areas for more profound research of how

leadership techniques influence organizational performance, especially

considering the factors specific to small businesses. Such research can

equip leaders with the tools to manage challenges and capitalize on

opportunities promoting sustainable growth and positive social change.

Small Business Leaders' Strategies To Improve Organizational Performance

Students also viewed