Revue du Journal arabe des affaires et de la gestion

The Impact of Leadership Styles on Business Success: A Case Study on SMEs in Amman

Abstract

 Ibrahim Mkheimer

Leadership styles have an essential, direct cause and effect relationship on business success and their development. Leaders’ roles are revolved in forming values, visions, and employee’s motivation. Several leadership styles were analyzed in this study such as transformational, transactional and charismatic. A review of the literature showed several empirical businesses. The problem of the study was to cover the gap in the literature related to leadership styles in achieving total business success. Data collected in this study using a leadership survey including demographic, leadership styles and business success questions. Hundred questionnaires were distributed and only 85 valid respondents completed and appropriate for further analysis in the survey. Descriptive statistics, exploratory factor analysis (EFA) and multiple regressions were used to test the research hypotheses. The study was assumed that a transformational transactional and charismatic leadership styles were the most dominant of leadership styles in the business. The study found that most companies have same styles of leadership. Based on the results, transactional leadership style has a significant positive impact on business success. Additional, transformational leadership style, however, showed a negative impact on business success. This means that success of business would not develop or increase when transformational style is found.