Leadership in small business environments: from the heroic model to distributed approach

Purpose This study explores the process of interactions experienced by leaders during the evolution of the small firm. Three key propositions are conceptualized into a model with the main aim of supporting leaders of small organizations in understanding better the leadership phenomena. Design/methodology/approach This qualitative research project investigates the dynamics of leadership in small businesses through an inductive and abductive approach, inherent to grounded theory. This enabled the development of propositions directly from data. Field research involved responsive interviews with 12 established small enterprise leaders. Selective and theoretical sampling coupled with ongoing data comparison and analysis were applied to uncover and refine emerging leadership concepts. Findings Intellectual assets of leaders in small firms propel the recognition and sensitivity to the process of organizational evolution which requires a continuous adaptation of the leadership paradigm. Research limitations/implications The researchers’ philosophical stance to construct reality based on the participants own experiences, cannot produce generalized findings on the subject area. Practical implications Enhanced Decision-Making and Strategic Planning: Small business leaders can leverage their academic and industry backgrounds to make more informed and strategic decisions. Facilitating Organizational Change: By understanding the necessity of continuous change, small business leaders can implement frameworks that encourage flexibility and adaptability within their organizations. Adopting Distributed Leadership: Encouraging small business owners to move away from centralized control towards a more distributed leadership model can lead to better organizational outcomes. Originality/value A considerable amount of research has been devoted to leadership in the past decades. There is very little evidence on behavioral patterns of leaders, grounded in data within the context of the Small Firm aimed at the practitioner. This work is contribution towards this shortfall.