Harmonizing Growth: Leadership Competencies’ Mediation in SMEs’ Organizational Culture and Structure Through Schein’s Model

Abstract

Based on Edgar Schein’s Organizational culture and leadership theory, this quantitative cross-sectional study examined how leadership competencies mediate the relationship between organizational culture and structure. This study examined data from 355 managers in Ghanaian SMEs using structural equation modelling in AMOS version 23. Notably, organizational culture demonstrated a negative and significant effect on organizational structure, highlighting the influence of cultural norms and values on structural arrangements within SMEs. Additionally, the study revealed a positive and significant impact of organizational culture on leadership competencies, emphasizing the role of cultural factors in shaping leadership capabilities within these organizations. The findings indicated a positive and significant relationship between leadership competencies and organizational structure, suggesting that effective leadership skills contribute to the establishment of appropriate organizational structures. Furthermore, leadership competencies were identified as a partial mediator in organizational culture and structure, underscoring the relationship between cultural dynamics, leadership capabilities, and structural arrangements in SMEs. Managers in SMEs should prioritize fostering a positive organizational culture that supports the company’s strategic objectives. Investing in leadership development programs will empower leaders to navigate cultural dynamics effectively, driving positive change. Aligning leadership competencies with the organizational structure ensures agility, collaboration, and strategic decision-making, fostering growth and responsiveness.