The mediating influence of strategic planning and moderating effect of organisational culture on the relationship between Egyptian SMEs’ leadership style and their financial performance

Nawar, Yehia (2018) The mediating influence of strategic planning and moderating effect of organisational culture on the relationship between Egyptian SMEs’ leadership style and their financial performance. Doctoral thesis, University of West London.

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Abstract

The purpose of this thesis to investigate the potential mediating influence of strategic planning practices and moderating impact of organisational culture dimensions on the leadership-performance relationship within SMEs operating in Egypt. To achieve the research aim, and answer the research questions, five empirical models were developed based on a review of the existing literature in order to test the research hypotheses.
This research adopted a quantitative, positivist, deductive approach using self- administered questionnaires to elicit data from SME managers operating within an Egyptian context. Convenience sampling was employed to collect data from target respondents followed by a snowballing technique. In total one thousand questionnaires were sent out to a range of SME management levels operating in Egypt using a postal survey method. 309 questionnaires were returned representing a response rate of 30.9%. Of these 283 questionnaires were complete and were subjected to analysis using multiple linear regression to interrogate the research questions. Exploratory factor analysis (EFA) and confirmatory factor analysis were conducted (CFA) to ensure the proposed measurements scales used in the questionnaire are appropriate for the study.
Overall findings revealed that leadership styles namely: transformational and transactional have a positive significant impact on SME performance while passive- avoidant do not. Secondly, results demonstrate that the transactional leadership style has the most impact on strategic planning, followed by the transformational style. In addition, the results indicate that the passive avoidant style has a negative impact on the practice of strategic planning within SMEs. Findings show that internal orientation and strategic techniques are positively correlated to SME performance, whereas, external focus and involvement of key personal have an insignificant impact on performance. Mediation analysis shows that impact of leadership styles on performance is mediated by strategic planning practices. Finally, the moderation regression result indicates that the hierarchy culture dimension moderates the impact leadership styles on performance.
This research contributes to the literature regarding the mediation influence of strategic planning on leadership-SMEs financial performance relationship, as it is the first study to test mediation and moderation of strategic planning and organisational performance on leadership-SMEs financial performance. Also, the current study enhances the existing body of knowledge of strategic planning and resource-based view (RBV) by being the first study to report the practice of strategic planning in SMEs operating within a developing economy. Moreover, this study provides a novel contribution to the growing literature on leadership, strategic planning, organisational culture and SME performance, particularly for developing countries, the Middle East and North African countries (MENA) such as Egypt. The study presents a new, valid and comprehensive model that provides practical implications for SME managers on the important role of the mediating influence of strategic planning and the moderating effect of organisational culture. The Leadership-SME performance model could be used as a guide for implementing organisational change including cultural or managerial styles to improve SME performance. Where, the proposed model serves as a blue print for managers to improve efficiency of operation within SMEs, as well as enhancing market competitiveness within the industry they serve.
In conclusion, this study provides empirical evidence on the connection among leadership styles, strategic planning practices, organisational culture dimensions, and SME performance in Egypt. Thereby stimulating the need for further research that incorporates a cultural context in leadership and organisational performance studies for large organisations. Furthermore, it provides practical implications for managers/leaders by identifying the leadership behaviours and organisational mechanisms required to enhance strategic planning practices and overall performance.

Item Type: Thesis (Doctoral)
Subjects: Business and finance > Business and management
Business and finance > Business and management > Culture and leadership
Business and finance > Small business
Business and finance
Depositing User: Yehia Nawar
Date Deposited: 14 Jan 2021 12:13
Last Modified: 28 Aug 2021 07:14
URI: http://repository.uwl.ac.uk/id/eprint/7617

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