Transformational Leadership and Organizational Growth: A Case of Small and Medium Enterprises dealing with Autocare in Roysambu Sub-county, Kenya

Abstract

Small and medium enterprises providing autocare services have an opportunity to apply transformational leadership construct to sustain their competitive advantage, avert possible business loses and enhance their organizational growth. This research focused on transformational leadership and organizational growth; a case of small and medium enterprises providing autocare services in Roysambu Sub County in Nairobi, Kenya. The purpose of this study was to establish the influence of transformational leadership on organizational growth of SMEs. The specific objectives of this research were to determine the impact of idealized influence on organizational growth of autocare SMEs in Roysambu Sub County, in Nairobi Kenya; to establish the influence of individualized consideration on organizational growth of autocare SMEs in Roysambu Sub County, in Nairobi Kenya; to find out whether inspirational motivation influences organizational growth of autocare SMEs in Roysambu Sub County, in Nairobi Kenya; to find out whether intellectual stimulation influences organizational growth of autocare SMEs in Roysambu Sub County,in Nairobi Kenya and to establish the combined effect of idealized influence, individualized consideration, inspirational motivation and intellectual stimulation, on organizational growth of Autocare SMEs in Roysambu Sub County in Nairobi, Kenya. This study adopted a post-positivist philosophy and a descriptive research design. The target population was 30 SMEs dealing with autocare in Roysambu Sub County. Stratified random sampling was applied. Within each stratum, purposeful sampling method was used to choose 30% of the target population. Data was collected using a structured questionnaire which was pre-tested to ascertain its reliability and validity before they were administered to the respondents through distribution. Data was analyzed using Advanced Excel and SPSS (V26) which generated both descriptive and inferential statistics. Results showed a strong R-Square of 0.984 which implied that transformational leadership influenced organizational growth by 98.4%. The results are potentially beneficial to autocare SMEs in Roysambu Sub County with respect to enhancement of organizational growth. The same results can be replicated and benefit other organizations with similar structures. The study is significant in adding to the existing body of literature and thus fill the literature review gap on the influence of transformational leadership on organizational growth. The study concludes that transformational leadership significantly influences organizational growth of SMEs dealing with autocare in Roysambu Sub County in Nairobi, Kenya. The research recommends further study in a different context with a different conceptualizations