Assessment of Leadership Effectiveness Dimensions in Small & Medium Enterprises (SMEs)

In order to understand the economic development goals, SMEs play an important and potential role. In Malaysia, after the establishment of the National SME Development Council (NSDC) in 2004, the importance of SMEs as the main engine growth of the country's economy was recognized. The contribution of SMEs to the country growth and economy development is a crucial feature of economic development in Malaysia. According to many researchers, leadership effectiveness is an important factor rolling organizational performance, however the research on this factor in small businesses, especially SMEs in Malaysia, is still lacking. Therefore, in order to improve the performance of SMEs in the future the role of SMEs must be equilibrium with leadership effectiveness. The purpose of this study is to assess the leadership effectiveness's dimensions in SMEs, specifically, Malaysia SMEs. The applied research method in this study is quantitative method by using SPSS analysis. This study is used managers of selected SMEs in Malaysia as a sample. The results of this study showed that leadership effectiveness' s dimensions plays an important role to measure the leadership effectiveness which has impact on SMEs performance. (C) 2019 The Authors. Published by Elsevier Ltd.