Evaluating the relationship between the leadership style of owners of small, medium, and micro construction enterprises in Tshwane and the organization success.
Pitsoane, Clement
Pitsoane, Clement
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Abstract
The South African construction industry's SMMEs, or Small, Medium, and Micro Enterprises, significantly contribute to the economic growth of the nation. However, their failure in the first three years of their existence negatively affects the country‘s economy and their sustainability reputation. Adopting leadership styles is essential to the organizational success to combat SMME failure in the construction sector. The study aims to determine and recommend the leadership style(s) among construction SMMEs owners that correlate with the success of the organization and with the interpersonal skills in the Tshwane Metropolitan, in South Africa. A questionnaire survey was used to collect the primary data, and it was mailed to owners of construction SMMEs registered with construction industry development board (CIDB) in Tshwane. A total of 440 CIDB contractors from grade 1 to 7 were sampled from a target population of 1179. A total of 161 contractors responded of which 160 questionnaires were deemed usable. To sample the contactors, stratified random and purposive sampling methods were adopted. To empirically analyze the data, Statistical Package for the Social Science (SPSS) version 27 was used for both descriptive and inferential statistics. Inferential statistics using linear regression established the relationship between leadership styles, and the organizational success and the interpersonal skills. Descriptive statistics was used to establish the
leadership style adopted by owners of construction SMMEs in Tshwane. An exploratory factor analysis (EFA) was performed on the seven leadership styles, revealing that the owners of SMMEs predominantly adopted charismatic, democratic, transformational, and transactional leadership styles. Additionally, a regression analysis demonstrated that democratic, charismatic, transformational, and bureaucratic leadership styles significantly predict interpersonal skills. The study also found that both bureaucratic and transformational leadership are significant predictors of organizational success. The study suggests that as owners of construction SMMEs face growing demands to achieve more with limited resources in a rapidly evolving industry, effective leadership style becomes essential for achieving desired outcomes. In this context, the human aspect of organizational management is critical. Based on the empirical findings, the recommendations provide guide to the owners of construction SMMEs and other stakeholders on leadership styles that are linked to interpersonal skills and
organizational success.
Description
Submitted in fulfillment of the requirements for the degree Masters of Building Science: Construction Management (Structured) at the Department of Building Sciences in the FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT at the TSHWANE UNIVERSITY OF TECHNOLOGY.
Date
2024-08-06
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Tshwane University of Technology
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Keywords
Construction industry, Interpersonal skills, Leadership styles, Organizational success, Small Medium and Micro Enterprises owner‘s.