Transformational Leadership and Operational Excellence in Small and Medium Enterprises (SMEs) Manufacturing Sectors

Abstract

This study aims to examine the effect of transformational leadership on operational excellence among Malaysian Small and Medium Sized Enterprises (SMEs) manufacturing sectors. Specifically, the current study examines four dimensions of transformational leadership namely idealized influence, individual consideration, intellectual stimulation and inspirational motivation that can produce positive organizational change and create excellent performance. This study introduces a conceptual framework that encompasses four dimensions of transformational leadership impacting operational excellence. Moreover, this paper adds significant value to the current knowledge base by advancing the conceptual understanding of operational excellence in the context of Malaysian SMEs manufacturing sectors. The practical application of efficient management strategies encompassing transformational leadership among SMEs in Malaysia can substantially enhance the attainment of operational excellence and elevate their overall business performance.