Exploring the Impact of Leadership Style and Organizational Culture on Employee Performance in Malaysian SMES

Objective - This study investigates the impact of cashless payment adoption on the performance of Small and Medium Enterprises in Malaysia, examining the mediating role of facilitating conditions. Drawing upon the Diffusion of Innovation Theory, we propose a model where government support, organizational support, technological support, and trust influence cashless payment adoption. Methodology/Technique –The research adopts a quantitative approach using structured questionnaires distributed among employees in various Malaysian SMEs. Data were analyzed using statistical tools, including regression analysis, to determine the strength and nature of relationships between the variables. Finding – The results reveal that transformational leadership, and a supportive organizational culture significantly enhance employee performance. In contrast, autocratic leadership styles tend to have a negative effect. The study also finds that organizational culture mediates the relationship between leadership style and employee performance. Novelty – This paper contributes to the existing literature by focusing specifically on Malaysian SMEs, providing empirical evidence on the interplay between leadership styles, organizational culture, and performance—an area previously underexplored in the Southeast Asian context. Type of Paper: Empirical JEL Classification: G23, M00 Keywords: Leadership style, organizational culture, employee performance, SMEs, Malaysia Reference to this paper should be referred to as follows: Samat, M.F; Bashri, Z.A.A. (2025). Exploring the Impact of Leadership Style and Organizational Culture on Employee Performance in Malaysian SMES, GATR-Global J. Bus. Soc. Sci. Review, 13(1), 12–25. https://doi.org/10.35609/gjbssr.2025.13.1(2)