Impact of Transformational and Transactional Leadership Styles on Organizational Commitment and SMEs Business Performance A Comparative Analysis

This study has investigated the impact of the leadership styles on organizational commitmentand business performance and impact of organizational commitmenton business performance of SMEs in Bali, Indonesia. The study adopted a survey designusing a semantic differential scale quitionaire sent to 118 managers and assistent managers from 59 SMEs. The data analysis employed Partial Least Square (PLS-3). The result showed that both transformational and transactional leadership styles had significant positive effect on organizational commitment and SMEs bussines performance ang organizational commitment had significant positive effect on bussines performance. The study concluded that transactional leadership was more appropriate in inducing commitment and business performance in small medium enterprises and transformational leadership stylefor the small enterprises with inbuilt strategies for transition, the enterprises developed , grew, and sustainability.