Exploring Organizational Culture and Leadership Synergy for Effective Strategy Execution in SMEs


Saleh M. A. S., Alshafeey M., Odorige C., ElHaj A.

in: Contributions to Management Science, Springer International Publishing Ag, pp.55-74, 2025

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2025
  • Doi Number: 10.1007/978-3-031-94336-2_4
  • Publisher: Springer International Publishing Ag
  • Page Numbers: pp.55-74
  • Keywords: Adhocracy, Autocratic, Clan, Democratic, Hierarchical, Leadership, Market, Organizational culture, SMEs, Strategic execution, Transactional, Transformational
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

This study explores how various organizational cultures and leadership styles influence strategy execution success in SMEs. It examines the alignment and impact of distinct organizational culture types (clan, adhocracy, market, and hierarchical) and leadership styles (democratic, transformational, transactional, and autocratic) on strategy execution. By analyzing 500 Scopus abstracts using text mining, structural equation modeling (SEM), and path analysis, the study uncovers significant relationships: clan culture paired with democratic leadership proves most effective for strategy execution, followed by adhocracy with transformational leadership, market with transactional, and hierarchical with autocratic. This study’s originality lies in its comprehensive approach to understanding the intricate connections between organizational culture types, leadership styles, and strategy execution in SMEs.