Impact of Leadership and Corporate Culture on Organizational Performance of Small and Medium-Sized Enterprises

Abstract

This study explores the influence of distinct leadership styles and corporate culture on the organizational performance (OP) of small and medium-sized enterprises (SMEs) in Guangxi, China. Based on data gathered from 400 participants, it delves into the effects of Transactional, Transformational, and Charismatic Leadership, alongside key corporate culture traits such as Mission and Consistency Characteristics, on enhancing organizational performance. The regression analysis underscores a strong positive correlation between these leadership styles and cultural attributes, demonstrating their critical role in driving improved organizational outcomes. Moreover, the study reveals that when leadership behavior is aligned with corporate culture, a powerful synergy is created, further amplifying their collective impact on performance. These findings offer valuable insights for SMEs, highlighting the significance of cultivating leadership that inspires and motivates employees while fostering a mission-driven and consistent corporate culture. In doing so, organizations can boost communication, employee development, and overall performance.