Business Administration Project Topics

The Influence of Leadership Style on Innovation on SMEs in Lagos

The Influence of Leadership Style on Innovation on SMEs in Lagos

The Influence of Leadership Style on Innovation on SMEs in Lagos

Chapter One

Objectives of the Study

The concept of leadership is prevalent in most literature of management. This is so because it has attracted many export in management science. This research will also contributes tremendously to the growing literature in the field primarily, this study will achieve the following purposes:

1)    To enhance people’s understanding of leadership as an important concept in organizational behaviour and management

2)    To look at the various problems by leaders in organizational and suggest ways to resolve such problems

3)    To look at the relationship between leadership style and workers performance.

4)    To look at the relationship between leadership style and workers performance.

5)    To examine the quality of leader needed in the organization.





Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.



Leadership and its role are pertinent issues for the business and organizations now days. The “Leaders are individuals who establish direction for a working group of individuals and who gain commitment from this group of members to established direction and who then motivate members to achieve the direction’s outcomes  ”  (Conger,  1992).   The term leadership can be viewed through multiple angles and concepts. Traditionally leadership is a set of feature owned by the leader or it is a social phenomenon that comes from relationship.

These concepts can give different opinions about the definition of leadership. It is a continuous debate that  whether the leadership comes from the personal qualities of a leader or a Leader makes  followership  through  what  she /he  does  or  believes  (Grint  2004).  Grint also highlight position problems with the leadership, which explores, is the leader a person in charge? With the true authority to decide or implement, or it is only a person in front who takes his/her directions for someone. Recent reviews take leadership as “a process whereby an individual influences a group of individuals to achieve a common goal (Northouse 2004). Another view about leadership is that “leadership is like the Abominable Snowman, whose footprints are everywhere but who is nowhere to be seen” (Bennis and Nanus 1985).

In short leadership /leader is either a person who is in charge and has authorities to take decision and  also has  powers  to  implement  his/her  decisions  or  a  process  having  a  set  of other authoritative process about organizational, personal or social process of influence for which the groups, teams or organizations can do more to increase their ability. The selection of the leader not only depends on the personal characteristics of the person, but also on the social and cultural factors along with his/her exposure towards life (Bolden2010). Leadership is a process by which one person influences the thoughts, attitudes and behaviours of others. Leaders set a  direction for the rest of us; they help us see what lies ahead; they help us visualize what we might achieve, they encourage us and inspire us. Without leadership a group of human beings quickly degenerates into argument and conflict, because we see things in different ways  and lean toward different solutions. Leadership helps to point us in the same direction and harness our efforts jointly. (D. Quinn Mills 2005)

Mcshane defines effective leadership as the process of influencing people and providing an environment for them to achieve team or organisational objectives. He states further that effective leadership help groups of people define their goals and find ways to achieve them.  In his view they use power and persuasion to ensure that followers have the motivation and role clarity to achieve specified goals. Effective resources and achieve cooperate objectives more easily (Mcshane, 2003).

Koontz et al 1980 in Morehead and Griffin define leadership as  “influence, the art or process of influencing people so that  they will strive willingly towards the achievement of group goals” (Moore Head and Griffin 2001). Similarly Beleina (1986) in Ezeani sates that effective leadership is the “art of influencing individual or group activities towards achievement of enterprise objectives. (Ezeani 2006). He went further to state that effective leadership is sometimes more that power or authority.

That it entails some degree of voluntary compliance by followers. Effective leadership he says  involves not only willingness to work on the part of followers but also willingness to work with zeal and confidence (Ezeani 2006).

Sugarman (2007) states that effective leaders are designers, Steward and  teachers. They are responsible for building organisations where people continually expand their capabilities to  understand complexity, clarify, vision and improve shared mental models- that is, they are  responsible for learning (Karsy 2007).

Managing Subordinates in Organisations

Every organisation is made up of physical and human resources and  the key factor to organisational success is the optimal utilization of these physical and human resource. The individuals in an organisation have different needs, attitude and personality, which tend to influence their behaviours. It is important that a manager recognizes this factors/process working within their subordinates and determines types of leadership style and behaviour to employ in order to make work efficiency Effiong, 1998 in (Ohiri 2008). However, mangers should look at             organisation/members as a group working towards the accomplishment of a single goal.  The leader in trying to direct the activities of the group must bear in mind that the individual making up the group have different goals which the leader must know and that of the organisation. It is the responsibility of the group leader to foster peace and unity rather than hindering the group’s  progress and success. Leaders should be rational in their approach towards a unified goals rather than being sentimental. Groups are dynamic and so group leader should also be dynamic. Leaders must be able  to forecast and predict changes before they occur. He must be able to accept and manage conflicts, communicate effectively, provide subordinates with resources and maintain a peaceful coexistence between the workers and the organization Effiong in (Ohiri 2006). When subordinates trust and respect their leader he is free to vary his behaviour. A resenfful or hostile group will require a different style of leadership from the one that work with a well intended and friendly group. He emphasized further that leadership behaviour that may be successful with a self reliant group may prove a dismal failure with a dependent apathetic one.





In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.


Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.


According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.

The main focus of this study is to examine The influence of leadership style on innovation on smes in lagos using smes operators in lago. Staff of smes in lago Forms the Population of the Study.




This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of thirty-six (36) questionnaires were administered to respondents of which only thirty (30) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 30 was validated for the analysis.




The main focus of this study is to examine the influence of leadership style on innovation on smes in lagos using SMEs in Lagos as case study. The study further ascertained that if the leadership style adopted by a boss in organization motivates the subordinate to perform better.

The study adopted a survey research design and with the aid of convenience sampling method, the researcher selcted 36 participant who are SMEs operators in Lagos was selected for the study. Self-Structured questionnaire was issued to the respondent of which 30 was retrieved and validated for the study. Data was analyzed in Simple percentage using frequencies and tables. Hypothesis test was conducted using Chi-Square Statistical tool (spss v.23).


The role of leadership in an organization is crucial in terms of creating a vision, mission, determination and establishment of objectives, designing strategies, policies, and methods to achieve the organizational objectives effectively and efficiently along with directing and coordinating the efforts and organizational activities.Top quality leadership is essential to achieve the mission and vision along with coping with the changes occurring in the external environment. Findings from the study, the following conclusions were drawn:

  • A worker’s satisfaction with his/her boss leadership style will lead to effective performance.
  • Leadership geared towards the needs of employees will motivate them to perform.
  • Workers perception of their leadership fairness in dealing with subordinates will lead to higher performance.
  • Leadership style that allow workers to participate in decision affecting them will lead them to higher performance.


Based on the responses obtained, the researcher proffers the following recommendations:

  • Leaders should be carefully chosen in an organizational set up and they must be sent on training to update their knowledge and skills.
  • Information concerning the responsibilities of the employees should be promptly and clearly communicated to them so that they will be better placed to discharge their duties effectively and efficiently.  
  • Organization should create opportunity for workers training and development and leaders should show equity and fairness in dealing with employee.
  • That leadership style is one of the tools used in attainment of organizational goals and objectives, therefore every organization should as issue of importance, ensure of getting the right leader that will man their organization; in order to achieve their set goals/objectives.
  • Rewarding employee performance is also recommended to the three transport companies, as it enhances workers moral and spur them to increase their input in the company.


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