The Impact of Transformational and Transactional Leadership on Organisational Commitment in Small and Medium Enterprises (SMEs)

This study was conducted to explore the relationship between leadership styles and organizational commitment in the manufacturing sector in Small and Medium Enterprises (SMEs) in Malaysia. This study utilizes survey methods via questionnaires that involve 452 respondents. Findings from regression analysis show that both transformational and transactional leadership styles have a significant impact on organizational commitment in the manufacturing sector in Malaysian SME firms, especially transformational leadership. Hence, SME management teams are advised not to neglect the aspect of leadership styles in efforts to increase their organization's performance.