Abstract:
Purpose: The purpose of this study is to examine how transformational leadership
style influences the performance of SMEs in Kandy district.
Design/methodology/approach: The study was based on a quantitative approach.
Data were collected from 200 registered SMEs in Kandy district. The data analysis
was done using the SPSS 26 version to examine the relationship between research
variables.
Findings: The findings showed that the transformational leadership style has a
moderate positive relationship with SMEs performance.
Practical implications: Through comprehensive data analysis, the study endeavors
to provide empirical evidence supporting the positive correlation between
transformational leadership style and SME performance, offering valuable insights
for business leaders and policymakers seeking to foster a culture of innovation and
growth within the SME sector.
Research limitations: The study's geographical scope was limited to the Kandy
district, which may not fully represent the diversity of SMEs across the entire Sri
Lankan landscape. The sample size represents only a fraction of the total SMEs in
Kandy district. Qualitative data, such as in-depth interviews or open-ended survey
questions, could have provided richer insights into the topic.
Originality Value: Finding of this study provides empirical evidence to support
existing leadership theories and enhances scholarly discourse on leadership
effectiveness within SMEs and informs future research endeavors aimed at
optimizing leadership practices to drive organizational success in diverse business
environments.
