Exploring the impact of leadership styles on interpersonal skills and organisational success in construction SMMEs

Abstract

This study investigates the impact of leadership styles on interpersonal skills and organisational success in South African construction small, medium and micro enterprises (SMMEs). Considering the critical role of SMMEs in the economy and their high failure rates, the research determined leadership practices that could enhance the competitiveness of construction SMMEs. A structured questionnaire was distributed to a stratified sample of 440 Construction Industry Development Board (CIDB) registered contractors in the Gauteng region. The data were analysed using descriptive and inferential statistics. Linear regression models were employed to evaluate the impact of leadership styles on interpersonal skills and organisational success. Democratic, charismatic and transformational leadership styles are significantly associated with effective interpersonal skills. Transformational leadership, is the strongest predictor of organisational success, fostering improved collaboration, motivation and overall performance at both individual and organisational levels. This study focused on Gauteng SMMEs, limiting generalisability to larger firms or other regions. The cross-sectional design and perceptual data may introduce subjectivity and limit analysis of external factors like economic fluctuations. Future research should use longitudinal studies, multi-regional samples and objective metrics alongside perceptual data. The study advocates effective leadership styles for SMME owners to engender improved interpersonal skills and organisational success. A dearth of studies exists on leadership styles’ impact on interpersonal skills and organisational success in construction SMMEs. This study addresses this gap, with the primary purpose of enhancing leadership effectiveness in SMMEs.