Leadership styles, strategic decision making and performance:: An empirical study in small and medium-size firms

The objective of this article is to identify the relationship between transformational and transactional leadership style, strategic decision making and organization performance. A field work was developed on 93 small and medium-size enterprises. The collected data was analyzed by econometrical and statistical techniques, and then the results, implications and boundaries are discussed. The results show that there are a positive and significance relationship between the quality design of strategic decision and organizational performance. Thus, the comprehensiveness and politicization are relevant for to explain the quality design of strategic decision. Moreover, the comprehensiveness and politicization was explained by flexibility of the decision process and the values congruence of the top management team. The transformational leadership is the principal determinant of the flexibility and values congruence. Therefore, is possible to identify a relationship between transformational leadership and organizational performance. Nevertheless, the transactional leadership has not statistical relevance on strategic decision making