The Impact of Ethical Leadership on Leadership Effectiveness Among SMEs in Malaysia

Procedia Manufacturing, Volume 22, 2018, Pages 968-974

7 Pages Posted: 24 Jul 2018

See all articles by Mitra Madanchian

Mitra Madanchian

Universiti Teknologi MARA (UiTM) - Faculty of Business and Management

Norashikin Hussein

Universiti Teknologi MARA (UiTM) - Faculty of Business and Management

Fauziah Noordin

Universiti Teknologi MARA (UiTM) - Faculty of Business and Management

Hamed Taherdoost

Hamta Group

Date Written: 2018

Abstract

One of the important sources for economic growth is the development of small and medium enterprises (SMEs). Research has shown that leadership is an important factor for organizational success. But the literature has indicated that leadership research in small businesses, especially SMEs in Malaysia, is still lacking. Thus, this study concentrates on the ethical leadership and leadership effectiveness among SMEs in Malaysia. To achieve this, this study begins by reviewing the literature in the areas of ethical leadership and leadership effectiveness. The quantitative approach is employed for data collection and analysis. To test the hypothesis data were collected from 150 Malaysia’ SMEs operating in service sector specifically Information Communication Technology (ICT). Exploratory factor analysis, confirmatory factor analysis and structural equation modelling (SEM) using path analysis were used to test the model and verify the hypothesis on the direct and positive effects of ethical leadership on leadership effectiveness. The findings of this research shows that ethical leadership have direct and positive effect on leadership effectiveness.

Keywords: Ethical Leadership; Leadership Effectiveness; SMEs

Suggested Citation

Madanchian, Mitra and Hussein, Norashikin and Noordin, Fauziah and Taherdoost, Hamed, The Impact of Ethical Leadership on Leadership Effectiveness Among SMEs in Malaysia (2018). Procedia Manufacturing, Volume 22, 2018, Pages 968-974. Available at SSRN: https://ssrn.com/abstract=3206562

Mitra Madanchian

Universiti Teknologi MARA (UiTM) - Faculty of Business and Management ( email )

40450 Shah Alam
Selangor
Malaysia

Norashikin Hussein

Universiti Teknologi MARA (UiTM) - Faculty of Business and Management

40450 Shah Alam
Selangor
Malaysia

Fauziah Noordin

Universiti Teknologi MARA (UiTM) - Faculty of Business and Management

40450 Shah Alam
Selangor
Malaysia

Hamed Taherdoost (Contact Author)

Hamta Group ( email )

Kuala Lumour
Malaysia

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