Leadership Styles and Organizational Effectiveness in Small Construction Businesses in Puebla, Mexico

Abstract

This paper analyzes types of leadership and their relationship with organizational effectiveness in small construction enterprises of Puebla. An analysis of various literature related to the topic was examined, for a theoretical basis. Next, some aspects were measured through a Likert-scale questionnaire, using a sample of 49 small construction businesses. The goal is to describe how leadership styles, in small construction businesses located in Puebla, are perceived, along with how to determine their relationships with the organizational effectiveness. The following research question arose: What type of leadership dominates the small construction businesses of Puebla? What is the relationship among organizational effectiveness and the types of leadership? The results of the investigation show a positive and significant correlation between effectiveness, and democratic leadership, and Laissez-faire (liberal) leadership. The regression model used explains 69.1% of the variations in effectiveness. In addition, there is no statistical evidence of omitted variables (the constant test = 0. 914).

Keywords: Styles of Leadership, Organizational Effectiveness, Small Businesses

JEL Classification: L26, M5, M12