The Effect of Leadership Styles on the Growth of Fintech Start-Ups in Zambia
Abstract
:1. Introduction
2. Literature Review
2.1. Leadership
2.2. Leadership and Entrepreneurship
2.3. Leadership Styles
2.4. Firm Growth
2.5. Leadership Style and Firm Growth
2.6. Hypothesis Development
2.7. Transformational Leadership Style and Firm’s Growth
2.8. Transactional Leadership Style and Firm’s Growth
2.9. Laissez-Faire Leadership Style and Firm’s Growth
3. Methodology
3.1. Study Context: Zambia
3.2. Sample and Data Collection
3.3. Measures
Scale Validation
3.4. Empirical Results and Discussion
Descriptive Statistics
3.5. Hypotheses Testing
4. Discussion
5. Conclusions, Managerial and Policy Implications
5.1. Contributions to Knowledge
5.2. Limitations and Future Areas of Study
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Firm Growth (FG) | Factor Loading | Cronbach’s Alpha | |
---|---|---|---|
FG1 | The company’s number of employees has significantly grown over the last five (5) years. | 0.820 | 0.911 |
FG2 | The company’s revenue growth has been significant year on year for the last five years. | 0.905 | |
FG3 | The company’s total assets have significantly increased year on year over the last five (5) years. | 0.797 | |
FG4 | The Company’s working capital needs have been increasing significantly year on year for the last five (5) years. | 0.981 | |
FG6 | Over the last five (5) years the company has significantly its profits. | 0.797 | |
Inspirational Motivation (IM) | |||
IM2 | My manager talks enthusiastically about what needs to be accomplished. | 0.923 | 0.841 |
IM3 | My manager articulates a compelling vision of the future. | 0.888 | |
IM4 | My manager expresses confidence that goals will be achieved. | 0.855 | |
Idealized Influence Attributed (IIa) | |||
IIa1 | My manager instils pride in me for being associated with him/her. | 0.725 | 0.758 |
IIa2 | My manager goes beyond self-interest for the good of the group. | 0.712 | |
IIa3 | My manager acts in ways that build my respect. | 0.924 | |
IIa4 | My manager displays a sense of power and confidence. | 0.723 | |
Idealized Influence Behaviour (IIb) | |||
IIb1 | My manager talks about his/her most important values and beliefs. | 0.761 | 0.879 |
IIb2 | My manager emphasizes the importance of having a collective sense of mission. | 0.770 | |
IIb3 | My manager specifies the importance of having a strong sense of purpose. | 0.911 | |
Intellectual Stimulation (IS) | |||
IS1 | My manager re-examines critical assumptions to question whether they are appropriate. | 0.974 | 0.899 |
IS2 | My manager seeks differing perspectives when solving problems. | 0.834 | |
IS3 | My manager gets me to look at problems from many different angles. | 0.936 | |
Individualised Consideration (IC) | |||
IC1 | My manager spends time teaching and coaching. | 0.979 | 0.853 |
IC3 | My manager helps me to develop my strengths. | 0.813 | |
IC4 | My manager considers me as having different needs, abilities and aspirations from others. | 0.838 | |
Contingent Reward (CR) | |||
CR1 | My manager provides me with assistance in exchange for my efforts. | 0.869 | 0.843 |
CR2 | My manager discusses in specific terms who is responsible for achieving performance targets. | 0.834 | |
CR3 | My manager makes clear what one can expect to receive when performance goals are achieved. | 0.870 | |
CR4 | My manager expresses satisfaction when I meet expectations. | 0.760 | |
Management-by-Exception Active (MbEA) | |||
MbEA1 | My manager focuses attention on irregularities, mistakes, exceptions, and deviations from standards. | 0.833 | 0.776 |
MbEA2 | My manager concentrates his/her full attention on dealing with mistakes, complaints, and failures. | 0.835 | |
MbEA3 | My manager keeps track of all mistakes. | 0.777 | |
MbEA4 | My manager directs my attention toward failures to meet standards. | 0.717 | |
Management-by-Exception Passive (MbEP) | Factor Loading | Cronbach’s Alpha | |
MbEP1 | My manager fails to interfere until problems become serious. | 0.792 | 0.797 |
MbEP2 | My manager waits for things to go wrong before taking action. | 0.887 | |
MbEP4 | My manager demonstrates that problems must become chronic before taking action. | 0.912 | |
Laissez-Faire Leadership | |||
LF1 | My manager avoids getting involved when important issues arise. | 0.778 | 0.753 |
LF2 | My manager is absent when needed. | 0.836 | |
LF3 | My manager delays responding to urgent questions. | 0.882 | |
LF4 | My manager avoids making decisions. | 0.959 | |
Deleted Items | |||
FG5 | Over the last five (5) years the company has had significant growth in its customer base (increased sales). | ||
IM1 | My manager talks optimistically about the future. | ||
IIb4 | My manager considers the moral and ethical consequences of decisions. | ||
IS4 | My manager suggests new ways of looking at how to complete assignments. | ||
IC2 | My manager treats me as an individual rather than just as a member of a group. | ||
MbEP4 | My manager shows that he/she is a firm believer in “If it isn’t broken, don’t fix it”. |
N | Minimum | Maximum | Mean | SD | ||
---|---|---|---|---|---|---|
Firm growth | 10 | 2.20 | 4.80 | 3.74 | 0.71 | |
Transformational leadership dimensions | Inspirational motivation | 10 | 3.00 | 5.00 | 4.07 | 0.60 |
Idealized influence attributed | 10 | 2.50 | 4.75 | 3.60 | 0.70 | |
Idealized influence behaviour | 10 | 2.33 | 5.00 | 3.77 | 0.75 | |
Intellectual stimulation | 10 | 2.00 | 5.00 | 3.87 | 0.85 | |
Individualized consideration | 10 | 2.33 | 5.00 | 3.73 | 0.78 | |
Transactional leadership dimensions | Contingent reward | 10 | 2.25 | 4.75 | 3.45 | 0.86 |
Management-by-exception active | 10 | 1.50 | 4.00 | 2.75 | 0.79 | |
Management-by-exception passive | 10 | 1.33 | 3.67 | 1.97 | 0.78 | |
Laissez-faire leadership | 10 | 1.00 | 4.50 | 2.23 | 0.73 |
Inspirational Motivation (IM) | N | Minimum | Maximum | Mean | SD | |
---|---|---|---|---|---|---|
IM2 | My manager talks enthusiastically about what needs to be accomplished. | 10 | 3.00 | 5.00 | 4.00 | 0.67 |
IM3 | My manager articulates a compelling vision of the future. | 10 | 2.00 | 5.00 | 3.90 | 0.88 |
IM4 | My manager expresses confidence that goals will be achieved. | 10 | 4.00 | 5.00 | 4.30 | 0.48 |
Idealized Influence Attributed (IIa) | ||||||
IIa1 | My manager instils pride in me for being associated with him/her. | 10 | 2.00 | 5.00 | 3.10 | 0.99 |
IIa2 | My manager goes beyond self-interest for the good of the group. | 10 | 2.00 | 5.00 | 3.56 | 0.78 |
IIa3 | My manager acts in ways that builds my respect. | 10 | 3.00 | 5.00 | 4.10 | 0.94 |
IIa4 | My manager displays a sense of power and confidence. | 10 | 2.00 | 5.00 | 3.80 | 0.92 |
Idealized Influence Behaviour (IIb) | ||||||
IIb1 | My manager talks about his/her most important values and beliefs. | 10 | 3.00 | 5.00 | 3.70 | 0.67 |
IIb2 | My manager emphasizes the importance of having a collective sense of mission. | 10 | 2.00 | 5.00 | 3.80 | 0.92 |
IIb3 | My manager specifies the importance of having a strong sense of purpose. | 10 | 2.00 | 5.00 | 3.80 | 0.92 |
Intellectual Stimulation (IS) | ||||||
IS1 | My manager re-examines critical assumptions in order to question whether they are appropriate. | 10 | 2.00 | 5.00 | 4.10 | 0.88 |
IS2 | My manager seeks differing perspectives when solving problems. | 10 | 2.00 | 5.00 | 3.50 | 0.97 |
IS3 | My manager gets me to look at problems from many different angles. | 10 | 2.00 | 5.00 | 4.00 | 0.94 |
Individualised Consideration (IC) | ||||||
IC1 | My manager spends time teaching and coaching. | 10 | 2.00 | 5.00 | 3.70 | 0.95 |
IC3 | My manager helps me to develop my strengths. | 10 | 2.00 | 5.00 | 3.90 | 0.88 |
IC4 | My manager considers me as having different needs, abilities and aspirations from others. | 10 | 2.00 | 5.00 | 3.60 | 0.84 |
Contingent Reward (CR) | ||||||
CR1 | My manager provides me with assistance in exchange for my efforts. | 10 | 2.00 | 4.00 | 3.40 | 0.84 |
CR2 | My manager discusses in specific terms who is responsible for achieving performance targets. | 10 | 2.00 | 5.00 | 3.60 | 0.97 |
CR3 | My manager makes clear what one can expect to receive when performance goals are achieved. | 10 | 1.00 | 5.00 | 3.20 | 1.32 |
CR4 | My manager expresses satisfaction when I meet expectations. | 10 | 2.00 | 5.00 | 3.60 | 0.97 |
Management-by-Exception Active (MbEA) | ||||||
MbEA1 | My manager focuses attention on irregularities, mistakes, exceptions, and deviations from standards. | 10 | 1.00 | 5.00 | 2.70 | 1.34 |
MbEA2 | My manager concentrates his/her full attention on dealing with mistakes, complaints, and failures. | 10 | 1.00 | 5.00 | 3.10 | 1.20 |
MbEA3 | My manager keeps track of all mistakes. | 10 | 2.00 | 4.00 | 2.50 | 0.71 |
MbEA4 | My manager directs my attention toward failures to meet standards. | 10 | 2.00 | 4.00 | 2.70 | 0.67 |
Management-by-Exception Passive (MbEP) | ||||||
MbEP1 | My manager fails to interfere until problems become serious. | 10 | 1.00 | 4.00 | 2.20 | 1.03 |
MbEP2 | My manager waits for things to go wrong before taking action. | 10 | 1.00 | 4.00 | 1.90 | 0.88 |
MbEP4 | My manager demonstrates that problems must become chronic before taking action. | 10 | 1.00 | 3.00 | 1.80 | 0.63 |
Laissez-Faire Leadership | ||||||
LF1 | My manager avoids getting involved when important issues arise. | 10 | 1.00 | 5.00 | 2.60 | 1.51 |
LF2 | My manager is absent when needed. | 10 | 1.00 | 3.00 | 1.80 | 0.79 |
LF3 | My manager delays responding to urgent questions. | 10 | 1.00 | 5.00 | 2.00 | 1.15 |
LF4 | My manager avoids making decisions. | 10 | 1.00 | 5.00 | 2.50 | 1.58 |
Firm Growth (FG) | N | Minimum | Maximum | Mean | SD | |
---|---|---|---|---|---|---|
FG1 | The company’s number of employees has significantly grown over the last five (5) years. | 10 | 2.00 | 5.00 | 4.10 | 0.88 |
FG2 | The company’s revenue growth has been significant year on year for the last five years. | 10 | 2.00 | 5.00 | 3.50 | 0.97 |
FG3 | The company’s total assets have significantly increased year on year over the last five (5) years. | 10 | 3.00 | 5.00 | 3.80 | 0.79 |
FG4 | The Company’s working capital needs have been increasing significantly year on year for the last five (5) years. | 2.00 | 5.00 | 3.70 | 0.82 | |
FG6 | Over the last five (5) years the company has significantly developed new products and services. | 10 | 2.00 | 4.00 | 3.60 | 0.70 |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(1) Firm Growth | 1.000 | ||||||||||||
(2) Gender | 0.288 | 1.000 | |||||||||||
(3) Age | −0.252 | 0.657 * | 1.000 | ||||||||||
(4) Education | −0.337 | 0.325 | 0.122 | 1.000 | |||||||||
(5) Inspirational Motivation (IM) | 0.325 | −0.074 | −0.258 | 0.022 | 1.000 | ||||||||
(6) Idealized Influence Attributed (IIa) | 0.383 | −0.143 | −0.429 | −0.049 | 0.868 ** | 1.000 | |||||||
(7) Idealized Influence Behaviour (IIb) | −0.528 | −0.364 | 0.146 | −0.100 | 0.374 ** | 0.188 | 1.000 | ||||||
(8 Intellectual Stimulation (IS) | 0.216 | −0.109 | −0.326 | 0.256 | 0.067 | 0.102 | −0.051 | 1.000 | |||||
(9) Individualized Consideration (IC) | 0.467 | 0.325 | 0.144 | 0.021 | 0.077 | 0.276 | −0.145 | 0.392 | 1.000 | ||||
(10) Contingent reward (CR) | 0.253 | 0.358 | 0.393 | 0.227 | 0.421 | 0.325 | 0.081 | −0.087 | 0.607 | 1.000 | |||
(11) Management-by-Exception Active (MbEA) | −0.299 ** | 0.111 | 0.258 | 0.223 | −0.333 | −0.649 | 0.065 | 0.333 | −0.383 | −0.342 | 1.000 | ||
(12) Management-by-Exception Passive (MbEB) | −0.038 * | −0.073 | 0.073 | −0.325 | −0.239 | −0.433 | −0.179 | −0.717 | −0.560 | −0.116 | 0.129 | 1.000 | |
(13) Laissez-faire Leadership | 0.225 | 0.513 | 0.330 | 0.161 | −0.412 | −0.478 | −0.647 | −0.280 | 0.137 | 0.296 | 0.179 | 0.540 | 1.000 |
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Choongo, P.; Chileshe, M.; Lesa, C.N.; Mwiya, B.; Taylor, T.K. The Effect of Leadership Styles on the Growth of Fintech Start-Ups in Zambia. FinTech 2023, 2, 698-717. https://doi.org/10.3390/fintech2040039
Choongo P, Chileshe M, Lesa CN, Mwiya B, Taylor TK. The Effect of Leadership Styles on the Growth of Fintech Start-Ups in Zambia. FinTech. 2023; 2(4):698-717. https://doi.org/10.3390/fintech2040039
Chicago/Turabian StyleChoongo, Progress, Mungu Chileshe, Christine Nakamba Lesa, Bruce Mwiya, and Thomas Kweku Taylor. 2023. "The Effect of Leadership Styles on the Growth of Fintech Start-Ups in Zambia" FinTech 2, no. 4: 698-717. https://doi.org/10.3390/fintech2040039