The Leadership Styles and Employee Productivity among Small and

Medium Enterprise within Lasam, Cagayan

A Research Project

Presented to the Faculty of

Western Cagayan School of Arts and Trades

Lasam, Cagayan

In Partial Fulfillment

of the Requirements for the Subject

Inquiries, Investigation, and Immersion

By:

Renier John T. Alcazar

Neil Bryan A. Alvarez

Novelle Keith P. Damaso

Baby Carla B. Madamba

S.Y. 2024 - 2025

The Leadership Styles and Employee Productivity among Small and Medium
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CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Background of the Study

Leadership has become a significant concern for both practitioners

and researchers. According to Olern SME Academy (2023), some small
and medium enterprises (SMEs) in the Philippines do well, while
others struggle. It often comes down to leadership. With about
99.56% of businesses in the Philippines being SMEs, good leadership
is key to keeping employees happy and productive. This part looks
at how leadership styles affect morale in Filipino SMEs, laying the
foundation for more on leadership and its impact on employee
engagement. The more familiar a manager is with different
approaches, the more effective they can be, Wardhani, A. K., &
Risonarta, V. Y. (2023). A successful leader should possess
specific traits, including the ability to foster unity, good
communication skills, self-assurance, and empathy. To lead is to
persuade one’s followers to work toward a common objective.
Currently, many leadership philosophies are applied in diverse
settings within our community. Leadership is present in everything
we do, including in schools, communities, businesses, and
organizations Waruwu, N., Siregar, H. S., & Naibaho, L. (2023).
Being a leader differs from being a manager and has nothing to do
with a job title or position. Leadership means pushing oneself
beyond the comfort zone to achieve something more significant.
Iyaji, F. I., Ocheni, S. I., & Nwankwo, F. (2023). The blog post
from Penn State University discusses that leaders should have
followers, the number of followers a leader has does not
necessarily indicate how successful they are. In an organization, a
leader should be someone whom the followers (employees) Northouse,
P. G. (2022)

Leadership is considered one factor that enhances an

organization’s performance. Various leadership styles focus on

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idealized influence, inspirational motivation, intellectual

stimulation, and individualized consideration by providing
contingent rewards and adopting management by exception (Gyensare,
M. A., Anku-Tsede, O., Sanda, M.-A., & Okpoti, C. A., 2016).
Transformational and transactional leadership styles are considered
impactful leadership styles that affect organizational performance
(Jyoti, J., & Bhau, S., 2015). A leader should adapt to change and
inspire others to reach their full potential. Various leadership
styles, such as autocratic, laissez-faire, transformational,
bureaucratic, and democratic, can be applied in organizations.
Autocratic leadership is more authoritative, which can create
mistrust and make employees feel undervalued Adriana, F.,
Matondang, S., & Hendry, H. (2023). However, it provides clear
direction and allows for quick decision-making. Some see this style
as bossy, as leaders make decisions without consulting staff
Obiwuru, T. C., Okwu, A. T., Akpa, V. O., & Nwankwere, I. A.
(2021). In contrast, laissez-faire leadership involves giving
employees the freedom to work independently, without much
interference from the leader. While this can encourage creativity,
it may lead to poor performance if employees lack direction,
Martinuzi, B. (2019) Transformational leadership can inspire
positive changes in those who follow. Transformational leaders are
generally energetic, enthusiastic, and passionate. Not only are
these leaders concerned and involved in the process, but they are
also focused on helping every member of the group succeed. Cherry,
K. (2024). Then, bureaucratic leadership is a situation where the
leaders follow the rules provided and do not try to think outside
the box. Since the rules and regulations are followed

and establish the path for employees to follow, it encourages

stable overall employee performance. However, it has the drawback
of limiting both the leader's and the employee's abilities or skill
Shafi, M., Zoya, D., Lei, Z., Song, X., Sarker, A. M. N. I., & Yao,
L. (2020). Democratic leadership, on the other hand, encourages

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leaders to involve employees in decision-making processes. By

seeking input and valuing employees’ opinions, this style promotes
collaboration and can improve job satisfaction and productivity.
Gill, A. (2021). Employees in such organizations feel more engaged
and valued, as their ideas and contributions are heard, leading to
higher motivation and performance.

Therefore, this study examines the effect of leadership

styles on the sustainability of employee performance in small and
medium-sized enterprises within Lasam, Cagayan. The effect of
leadership styles on employees’ performance within Lasam, Cagayan
SMEs is the issue currently seeking a solution. More research is
required to determine how various leadership philosophies affect
workers’ performance in these organizations. Due to this
information gap, SME leaders need help selecting the best
leadership approach for their organizational setting. The goal is
to better understand the connection between sustainability,
employee performance, and leadership styles so that SMEs can
implement strategies that boost employee engagement, provide a
happy work environment, and increase overall productivity, Hossin,
M., (2021)

CONCEPTUAL FRAMEWORKS

Input Process Output

Stressors
Cross-sectional The Leadership Styles
•Employee survey and Employee
Demographics Productivity among Small
Structured
Questionnaire
and Medium Enterprise
a. Age Sampling (Purposive)

b. Sex Data Analysis

c. Number of employee (Statistical Methods)

d. Years of
experience in SMEs

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e. Position in the
company

•Leadership Styles

a. Autocratic

b. Transformational

•How does employee

performance
sustainability
relate to leadership
styles in SMEs?

•What leadership
strategies can SME
leaders implement to
improve employee
productivity?

Figure 1.0 Illustrates the relationship between the study’s input,

process, and output (IPO) framework, highlighting the factors
influencing leadership styles and employee productivity in small
and medium enterprises (SMEs).

STATEMENT OF THE PROBLEM

This study aims to determine the leadership styles and employee

productivity among Small and Medium Enterprises (SMEs) within
Lasam, Cagayan. It seeks to examine how different leadership

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Enterprise within Lasam, Cagayan 5

approaches influence employee performance, motivation, and overall

organizational efficiency within SMEs.

This study will address the following questions:

1. What is the profile of the respondents according to:

1.1 Age

1.2 Sex

1.3 Number of employee

1.4 Years of experience in SMEs

1.5 Position in the company

2. How do different leadership styles affect employee productivity

in SMEs?

2.1 Autocratic

2.2 Transformational

3. How does employee performance sustainability relate to

leadership styles in SMEs?

4. What leadership strategies can SME leaders implement to improve

employee productivity?

HYPOTHESIS

(H₀): There is no significant relationship between leadership

styles and employee productivity in SMEs.

(H₁): There is a significant relationship between leadership styles

and employee productivity in SMEs.

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DEFINITION OF TERMS

Leadership Styles: Approaches used by leaders to manage and

influence employees, including autocratic, democratic,
transformational, laissez-faire, and bureaucratic.

Employee Productivity: The efficiency with which employees complete

tasks and contribute to organizational goals, measured by output,
work quality, and performance.

Small and Medium Enterprises (SMEs): Businesses with a limited

workforce and revenue, playing a key role in economic growth.

Lasam, Cagayan: A municipality in Cagayan Valley, Philippines,

where the study is conducted.

SCOPE AND DELIMITATION OF THE STUDY

This study focuses on the impact of different leadership styles on

employee productivity in Small and Medium Enterprises (SMEs) in
Lasam, Cagayan. It examines how leadership style influences
employee motivation, efficiency, and overall work performance.

The study is limited to SMEs operating in Lasam, Cagayan, and does

not include large corporations or businesses outside the area. It
relies on survey responses from SME owners, managers, and
employees, which may be influenced by personal opinions and
experiences.

SIGNIFICANCE OF THE STUDY

Leadership plays a crucial role in employee productivity,

especially in Small and Medium Enterprises (SMEs). This study
explores how different leadership styles impact employee

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Enterprise within Lasam, Cagayan 7

performance in SMEs in Lasam, Cagayan. The findings will help

business owners, managers, and employees understand effective
leadership approaches that can improve workplace efficiency and
motivation.

This research benefits several stakeholders:

Business Owners & Managers: Helps identify effective leadership

styles to enhance productivity.

Employees: Provides insights into how leadership impacts their work

experience.

SMEs: Offers strategies for improving employee engagement and

overall business performance.

Future Researchers: Serves as a reference for further studies on

leadership and productivity.

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Enterprise within Lasam, Cagayan 8

CHAPTER II

REVIEW OF RElATED LITERATURE

LOCAL STUDY

Analysis of Entrepreneurial Leadership Skills and Sustainable

Employee Productivity of MSMEs.

Referring to the study of S. Campos, J. D. (2021), The

Philippine economy's backbone has been referred to as micro, small
and medium enterprises (MSMEs) and is also the subject of intense
attention from many government institutions and corporate bodies.
MSMEs are rightly seen as drivers of economic change and
development. A leader, on the other hand, is someone who assumes a
leadership position which, by setting a good example and being
effective in what he does, inspires a team of followers by winning
their confidence and respect. He actively empowers and directs
them. This paper intends to examine the correlation between the
characteristics of MSME owners or entrepreneurs regarded as leaders
and employee productivity that may affect success. Data is
collected through a survey from fifty (50) MSMEs of Bulacan, who
were chosen by the purposive sampling method. Descriptive
statistics and non-parametric tests (Mann-Whitney U test and the
Kruskal-Wallis test) were conducted to examine sustainable
productivity by demographic profile and leadership skills
manifested by MSME owners. The results thereof indicate that
leadership skills possessed by MSME entrepreneurs revealed a
significant correlation when compared with employee productivity
variables.

The Predicting Effect of Occupational Commitment and Leadership

Styles on Organizational Effectiveness of Public School Heads.

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As highlighted in the study of Mamasarogan, J. M. & Tan, M. S.

(2024). The research aimed to assess the predictive impact of
occupational commitment and leadership styles on the organizational
effectiveness of public school leaders. The results revealed that
rank, years in service as school head, and type of school exhibited
statistically significant differences in the school heads’
occupational commitment. On the other hand, the statistical
significance test exposed that school heads’ leadership styles of
transformational, transactional, and democratic leadership
exhibited a significant positive association with organizational
effectiveness. Furthermore, the influence test showed that
occupational commitment significantly contributed to explaining the
variance in organizational effectiveness among respondents.
Alternatively, leadership styles, specifically transformational,
transactional, and democratic, were found to be predictors of
organizational effectiveness. Lastly, the multiple regression
results for predicting organizational effectiveness based on the
school heads’ occupational commitment and leadership styles
revealed that the model fit is robust, demonstrating that the
overall model is statistically significant and provides a good fit
for the data. Among the independent variables under study,
occupational commitment had a more important influence on
organizational effectiveness. On the other hand, leadership styles
also significantly predict organizational effectiveness, though
with a minor impact. This indicated that while effective leadership
styles positively influence organizational effectiveness, their
effect is less pronounced than occupational commitment. The study
underscored the importance of commitment and leadership in
cultivating favorable organizational climates that facilitate
collaboration, innovation, and continuous improvement.

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Leadership Styles as Predictors of Leadership Effectiveness Among

Filipino Youth Leaders. Psychology and Education:

As revealed by the study of Lusung, S. , Bernal, D. , Narbarte,

M. , Punzalan, J. & Garcia, J. (2023). Youth leaders nowadays are
well-versed in the difficulties affecting the world, and they are
increasingly concerned with finding long-term solutions to these
social, political, and environmental problems. Therefore, in this
research, the predictive relationship between each leadership style
(directing leadership, coaching leadership, supporting leadership,
and delegating leadership) and the leadership effectiveness of
Filipino youth leaders was investigated from 136 respondents
ranging from 18 – 25 years of age in the Philippines. The data was
gathered by following a predictive correlational research design.
Descriptive results showed that, on average, Filipino youth leaders
have moderate directing, supporting, coaching, and delegating
leadership styles, and at the same time, they also have high
leadership effectiveness. With the utilization of correlation and
multiple regression analysis, it was shown that there is a
significant relationship between directing leadership style,
coaching leadership style, supporting leadership style, delegating
leadership style, and leadership effectiveness of Filipino youth
leaders. It also showed that directing leadership style (B = 1.895,
t = 3.511) and supporting leadership style (B = 1.459, t = 3.264)
significantly predict the leadership effectiveness of Filipino
youth leaders. Directing leadership style is also the best
predictor. In conclusion, researchers found that various leadership
styles can be adapted by different leaders to increase their
effectiveness in leading other people to address social and
political issues.

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Small and Medium-Sized Enterprises (SMEs) Entrepreneurs’

Leadership, Management Skills, and Motivation in Relation to
Business Sustainability.

As reflected in the study of, Carpio, R. A. P. (2023). Small

and medium-sized enterprises (SMEs) are essential to developing and
growing any country's economy. This study investigated the Small
and Medium Sized Enterprises (SMEs) entrepreneurs' leadership,
management skills, and motivation in relation to business
sustainability. This study utilized a descriptive correlational
research design. There were 120 SME owners who were chosen through
purposive sampling. The study took place in Ozamiz City.
entrepreneurs' Leadership, Management Skills, Motivation, and
Business Sustainability Questionnaires were used as instruments in
gathering the data. Mean, Standard Deviation, Pearson Product
Moment Correlation Coefficient, and Multivariate Regression
Analysis were used as the data analyses. The results revealed that
the level of entrepreneurs' leadership and motivation is very high
while the entrepreneur's management skills are rated very good.
Meanwhile, the level of business sustainability is also very high.
Entrepreneurs' leadership, motivation, and management skills
greatly affect their business sustainability. Among the variables,
the entrepreneurs' leadership and management skills are the
predictors to their business sustainability. Entrepreneurs'
leadership abilities, management skills, and motivation postulate a
strong relationship toward business sustainability, which asserts
that motivation and entrepreneurial leadership contribute to
business sustainability. Thus, entrepreneurs' leadership,
management skills, and motivation could make them sustainable.
Entrepreneurs therefore could maintain their excellent leadership
abilities, management skills, and motivation through having
simulative training to survive in their respective entrepreneurial
endeavors.

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Effects of global leadership style on employee work engagement

among sectors of tourist attractions: Followership styles as
mediator and perceived organizational support as moderator.

As demonstrated in the study of, Sarol, N. A., & Rosario, F. S.

(2023), That the true test of leadership does not take place when
everything is going according to plan, a leader's ability to
support and guide personnel will determine whether they are a good
or bad leader in the sector of tourist attractions (Kamau, 2020).
As with any other industry, leadership in tourist attraction is
vital to the success of the industry. Success in the tourist
attraction relies heavily on collaboration, partnerships, and
strong leadership. With the advent of COVID-19 , leadership in the
tourist attraction sector has been put to the test. Nevertheless,
the one thing this health crisis has demonstrated is that when we
find ourselves in crisis, we need leadership. Therefore, the
objective of this study is to fill a gap in the literature
consisting in the lack of a model relating the above mentioned
variables. Basically, this study will present clarity on how global
leadership style can influence the employee work engagement and
health of the tourist attraction sector of the hospitality
industry. Additionally, results of the study served as a
realization on possible considerations on how followership style
mediates organizational support as important elements for fostering
a positive and effective work environment.

Islamic Leadership in BARMM, Philippines: Compatibility with

Western Leadership and Effects on Organizational Performance.

As shown in the study of Dimaro, M. E. (2023), This study is a

modest attempt to determine the compatibility of Islamic leadership
with conventional or Western leadership, more specifically,

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transformational and transactional leadership styles. This research

work is significant in terms of providing invaluable inputs and
insights on the leadership style (s) being practiced by the present
BARMM and its local government units which then become the
foundation for a possible policy intervention. In this connection,
the study findings showed that Islamic leadership has some
similarities as well as differences with the conventional/Western
leadership perspective, especially the transformational leadership
style. Furthermore, it was also found by the study that all the
three leadership styles under study, namely, Islamic,
transformational and transactional leadership styles are presently
adopted in the BARMM, as a whole. The results of the study also
disclosed that the present BARMM has demonstrated better
performance under the transitional period. In fact, it was also
revealed by the findings of the study that there is a significant
relationship between the three leadership styles, and BARMM
organizational performance. While this is a very much welcomed
input to the BARMM, the study still recommends for the BARMM top
leadership to continue upgrading, updating and enriching the
leadership skills and knowledge of its officials at the central
office and at the local government level, in both Islamic and
conventional leadership. It was also suggested by the study that
the top management of BARMM should conduct an Evaluative and
Assessment Survey of its organizational performance through the
assistance and guidance of an Organizational Development (OD)
consultants or experts aside from encouraging other researchers to
conduct similar research studies aimed at confirming or rejecting
the major findings of the present study. In short, while the study
results and inputs are favorable to BARMM, there is nothing to lose
by not being complacent but rather to continue instituting and
implementing the required administrative reforms that will enable
the BARMM to keep abreast with the fast-paced changing environment
and modern trends

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Management styles of women managers: Its effect on job performance

as prime mover to the ASEAN Economic Community (AEC) integration

Informed through the study of, Pioquinto, Ma. Angela Josefa

Gonzales (2020), This study aimed to explore the management styles
of women managers and its effects on their job performance with the
following objectives: to identify the management style of women
managers in as determined by the sub- ordinates and the women
managers themselves; to know the level of performance of women
managers as rated by the subordinates and the women managers
themselves; to find significant differences in the ratings given by
the two groups of respondents namely the women managers and
subordinates; to know if there is a significant relationship
between the level of performance of women managers and their
management styles; and to formulate management strategies that may
be proposed to enhance performance of women managers as a prime
mover for the ASEAN Economic Community (AEC). To pursue the
objectives of this study, a questionnaire was distributed to women
managers and their subordinates. Moreover, descriptive statistics
such as frequency and percentage were used for the profile of women
managers. Weighted mean was also used to determine the level of
performance of women managers as assessed by their subordinates and
to identify the most used management style. T-test and Pearson R
were also utilized for computing statistical data. This study
intended to propose management strategies to enhance the job
performance of women managers and their subordinates. It is hopeful
that these management strategies be adapted by women managers in
Daet, Camarines Norte, the Philippines, and the members of the
ASEAN (Association of Southeast Asian Nations), which may be of
help to their organizational successes. The following conclusions
were obtained from the findings of the study: 1) The management
style of the women managers as seen by majority of their

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subordinates is of the Autocratic style while the management style

the women managers see themselves as possessing is the Laissez-
Faire style of management. 2) The level of performance of women
managers as rated by their subordinates is in the satisfactory
evaluation level while as the women managers get to rate themselves
in terms of their performance, they have given a straight Good
result in the evaluation scale. 3) There is a significant
difference on the ratings of women managers and their subordinates
on the management styles of the women managers. There is also a
significant difference on the ratings of women managers and their
subordinates on the job performance of the women managers. 4) There
is no significant relationship between the level of performance of
women managers and their management styles. 5) The management
strategies proposed by the researcher may substantiate and enhance
the job performance of women managers in the Bicol Region, the
Philippines and the ASEAN (Association of Southeast Asian Nations)
Economic Community, into which our country is a member, and their
subordinates, by being able to seek solutions to problems, foster
group collaboration and camaraderie, implement strategic decisions
and initiate organizational changes. Also, the focus of the
proposed man-agement strategies of the researcher that may be
implemented to SMEs (Small Medium Enterprise) which is consid-ered
as the lifeblood of the economy of the member-nations of the ASEAN
Economic Community.

Comparing Canadian and Filipino Culture for Sustainable Business

Relationships.

As shown in the study of Villarino, R. T., Alonzo, M. L. M.,

Plaisent, M., & Bernard, P. (2025). This paper introduces cultural
insights by analyzing the similarities and differences between
Filipino and Canadian cultures. It highlights the importance of
building sustainable relationships to do business. By leveraging

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attitudinal and behavioral facets, communication styles, leadership

styles and decision-making techniques, employee motivations, and
conflicts in the workplace, the study emphasizes building
sustainable business relationships between Filipinos and Canadians.
As the researchers examined literature from academic researchers
and government websites, the researchers recommended using the Us
Approach to deepen the culturally diverse and sustainable
partnership between Canada and the Philippines. By doing so,
understanding differences, building trust, and recognizing gaps are
established. That way, necessary adjustments will be completed
depending on the cultural dissimilarities and relationship gaps.
While these were deduced, one should be cautious of generalizing
said analysis as certain deviations within Canadian and Filipino
cultures exist.

Improving employee experience in a medium-sized retail chain

through quality human resource management practices: does
bifurcation bias in family firms moderate the nexus?

Emerging from the study of Paderna, R. D., Guiveses, M. L.,

Ong, S. J., & Tsai, J. L. (2020). This mixed-method research
explores the propensity of bifurcation bias in a family business to
either amplify or diminish the effect of human resource management
practice and employee experience. To perform this task, the
researchers polled 235 employees o a medium-sized department store
chain in the Philippines using instruments adapted for the study.
The company owners and a human resource management expert were
interviewed afterwards in order to cross-validate observed data.
Survey results revealed that the quality of most human resource
management practices in the company is satisfactory and that
employee experience was assessed to be very good by those who were
polled. Unsurprisingly, bifurcation bias which favored family over
non-family members was adjudged to be prevalent according to the

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Enterprise within Lasam, Cagayan 17

respondents. Moderated regression analysis conducted also confirmed

the moderating effect of bifurcation bias, indicating that only
when bias is reduced can the effectiveness of human resource
management practices lead to enhanced employee experience. All
expert respondents were largely unsurprised by the survey results
suggesting that they were expected from a family business of this
size. The company was recommended to upgrade specific human
resource management practices as well as reduce bifurcation bias by
recruiting family members based on competence.

EXPLORING LEADERSHIP STYLES WITH INTERDISCIPLINARY MEASURES IN

EDUCATION – JUNIOR HIGH SCHOOL LEVEL

As highlighted in the study of De Guia, M. (2023). Academic

leadership for schools worldwide is becoming an area of interest
for many researchers. Various studies have focused on investigating
leadership styles and their impact on the success of educational
institutions. This study provides a thorough analysis of several
types of school leadership. The various kinds of leadership styles
include transactional leadership, democratic leadership, laissez-
faire leadership, servant leadership, and authoritative leadership.
Leadership styles are evaluated in terms of their impact on
classroom dynamics and student learning. It consists of a
literature review that synthesizes previous studies, a discussion
of the methods used, and a breakdown of the results to shed light
on the role that leadership styles have in molding the educational
environment.

FOREIGN STUDY

Effect of Leadership Styles on Employee Productivity in Nepalese

Commercial Banks

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As outlined in the study of, Khanal, B. (2024). Different

leadership styles can significantly affect organizational outcomes
and employee well-being. There are many distinct leadership
philosophies, and a leader may choose to implement a certain style
depending on their inclinations, the circumstances, and the demands
of their group. The aim of this study was to investigate the impact
of different leadership styles on employee productivity in the
banking sector. The study employed a descriptive and causal
comparative research design. This quantitative research aimed to
establish the relationships between dependent and independent
variables. The population consisted of employees from Nepalese
commercial banks, with 384 complete responses gathered through a
judgmental sampling method from initial 390 questionnaires
distributed. The findings show that transformational leadership,
transactional leadership, charismatic leadership and laissez-faire
leadership are all positive and statistically significant on
employee productivity. The consistency in the positive effects of
transformational charismatic leadership and laissez-faire
leadership across different contexts suggests that these styles may
be universally beneficial, although the degree of impact may vary
depending on the organizational environment and culture.
Transactional leadership, while effective, may need to be
complemented with other styles, especially transformational and
charismatic, to achieve optimal outcomes.

INFLUENCE OF ENTREPRENEURIAL WORKING ENVIRONMENT ON EMPLOYEE

PRODUCTIVITY AMONG SMALL AND MEDIUM ENTERPRISES.

Emerging from the study of, Atandi, F. G. (2021). In the

dynamic world, the experience of all kinds of professionals is
changing; the central role of leadership and transfer of exclusive
knowledge among the workers has become an essential concept.
Leaders develop such an environment that develops the sense of

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sharing and collaboration within the organization. The study has

set the target to investigate the role of leadership styles
(inclusive leadership and authentic leadership) in increasing the
productivity of employees, to investigate the moderating role of
knowledge sharing between leadership styles and employee
productivity in the context of a Hail health cluster, and to find
out the theoretical foundation of study. Data is collected with the
help of questionnaires developed on the base of previous studies.
The data of 253 participants were collected from the hospitals of
Hail cluster. Further, data is analyzed by using the PLS-SEM. The
finding of this study elaborates that authentic leadership has a
positive and significant relationship with productivity of
employees in healthcare centers. The result also found that
inclusive leadership also plays an important role in enhancing
employee productivity. The knowledge sharing appears as an
important moderator which performs an efficient role to facilitate
the employee with knowledge from leaders. This study has empirical,
theoretical and practical contributions in multiple ways. This
study expands the understanding of leadership styles with
productivity of employees by emphasizing on its dimension authentic
leadership and inclusive leadership, instead of merely focusing on
the general concept of leadership. This study highlights the
importance of knowledge sharing in the healthcare sector along with
the collaborations of leaders for learning as well as productivity.

From leadership to luminescence: Illuminating the avenues of

creativity in China’s small and medium enterprise sector.

As interpreted from the study of Li, X., Álvarez-Otero, S., Lee,

H., Han, H., & Ariza-Montes, A. (2024). Exploring the dynamics of
employee creativity in the small and medium enterprise (SME) sector
is crucial for contemporary organizational studies, especially in
the context of Chinese culture. In this study we investigated the

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complex relationships among inclusive leadership, employees'

happiness, personal values like altruism, and creativity within
China's SMEs. The objective was to understand how inclusive
leadership combined with happiness and altruism of the employees
impact creative outcomes. Data were collected from 408 employees
and leaders in the SME sector using a self-administered survey. We
applied structural equation modeling using SMARTPLS software for
analysis. We found that inclusive leadership significantly enhanced
employee creativity, and this relationship was mediated by employee
happiness. Employees' altruism was a key moderator, intensifying
the effects of inclusive leadership on employee creativity.
Theoretically, this research fills gaps in understanding
leadership, employees' happiness, personal values, and creativity
in an SME context. Practically, our findings emphasize the
importance of nurturing inclusive leadership and focusing on
employee well-being in guiding SMEs toward innovation and
sustainable growth amidst evolving challenges.

Role of Ethical Leadership, Corporate Culture, Employee

Empowerment, and Organizational Commitment on Employee
Productivity:

As demonstrated in the study of, Prayudi, A., Badewin, B.,

Machdie, M., & Arifansyah, A. (2024). This study investigates the
influence of ethical leadership, corporate culture, employee
empowerment, and organizational commitment on employee productivity
within a State-Owned Enterprise (SOE). Using a sample of 300
employees, data were analyzed through descriptive statistics,
reliability testing, correlation analysis, and regression analysis.
The findings indicate that all four factors significantly enhance
employee productivity, with organizational commitment having the
strongest impact. Ethical leadership was also found to influence
productivity indirectly through organizational commitment, while

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The Leadership Styles and Employee Productivity among Small and Medium
Enterprise within Lasam, Cagayan 21

corporate culture moderated the relationship between leadership and

productivity. Employee empowerment was shown to further improve
productivity by granting greater autonomy and responsibility to
employees. These results suggest that SOEs can enhance employee
productivity by fostering ethical leadership, a supportive
corporate culture, empowering employees, and building
organizational commitment. The study provides valuable insights for
SOEs aiming to improve performance in a public-sector context.

Leadership Style And Employee Productivity In Manufacturing

Companies In Indonesia.

According to the study of Suprayitno, D. (2024). In the dynamic

world, the experience of all kinds of professionals is changing;
the central role of leadership and transfer of exclusive knowledge
among the workers has become an essential concept. Leaders develop
such an environment that develops the sense of sharing and
collaboration within the organization. The study has set the target
to investigate the role of leadership styles (inclusive leadership
and authentic leadership) in increasing the productivity of
employees, to investigate the moderating role of knowledge sharing
between leadership styles and employee productivity in the context
of a Hail health cluster, and to find out the theoretical
foundation of study. Data is collected with the help of
questionnaires developed on the base of previous studies. The data
of 253 participants were collected from the hospitals of Hail
cluster. Further, data is analyzed by using the PLS-SEM. The
finding of this study elaborates that authentic leadership has a
positive and significant relationship with productivity of
employees in healthcare centers. The result also found that
inclusive leadership also plays an important role in enhancing
employee productivity. The knowledge sharing appears as an
important moderator which performs an efficient role to facilitate

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The Leadership Styles and Employee Productivity among Small and Medium
Enterprise within Lasam, Cagayan 22

the employee with knowledge from leaders. This study has empirical,
theoretical and practical contributions in multiple ways. This
study expands the understanding of leadership styles with
productivity of employees by emphasizing on its dimension authentic
leadership and inclusive leadership, instead of merely focusing on
the general concept of leadership. This study highlights the
importance of knowledge sharing in the healthcare sector along with
the collaborations of leaders for learning as well as productivity.

Examining the Leadership Styles and Effects of Sport Managers.

Informed through the study of, Güneş, E., & Kılıç, H. O.

(2024). Investigate the leadership styles of sports managers and
the impacts of these styles. Leadership, in its modern sense, was
first used in the British Parliament in the 19th century and has
gradually become a significant concept in business, education, and
social fields. Leaders guide groups towards specific goals and
enhance motivation through tasks such as crisis management,
rewarding, and innovation. Management, on the other hand, focuses
on coordinating resources and people in harmony to achieve
organizational goals. While managers utilize hierarchical
authority, leaders create influence through personal skills and
charisma. Sports managers bear significant responsibilities when
making strategic decisions and managing daily operations.
Leadership styles reflect managers' strategic visions, values, and
management strategies, and these styles yield different outcomes on
organizational performance, team cohesion, motivation, and
individual development. Research has shown that various leadership
styles, such as transformational, autocratic, and democratic
leadership, are key factors determining the effectiveness of sports
managers. Leadership influences the dynamics within the
organization and enhances employee motivation. This study examines
the leadership styles of sports managers and their effects through

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The Leadership Styles and Employee Productivity among Small and Medium
Enterprise within Lasam, Cagayan 23

a literature review methodology. The findings provide a

comprehensive understanding of the leadership styles of sports
managers and their impacts. These findings will contribute to the
existing body of knowledge and serve as a foundation for future
research on sports management leadership.

The Influence of Teamwork and Leadership Style towards Employee

Productivity in Retail Stores.

As highlighted in the study of, Jasmine, S., & Hongdiyanto, C.

(2023). Employees are one of the most critical assets considered
the driving force of operations in a company. Many companies can
determine their success by paying attention to employee
productivity. In the retail store, the employee’s productivity
relates to how employees can carry out daily operational to-do list
targets, punctuality, and initiative. Several factors, such as
Leadership, teamwork, and environment, can influence employees'
productivity in a company. The support of the organization is
critical in creating a comfortable environment for the employees to
work. Trust can be given through Leadership and a comfortable co-
team. With the proper support from the externals, the employee can
perform better on the work. This research was conducted to analyze
the effect of teamwork and leadership style on employee
productivity with Trust as a mediator. This research was conducted
quantitatively, and the data will be analyzed using PLS. The
subject includes employees of a store. The sampling technique used
is saturated sampling. The results of this study indicate that
Trust mediates the effect of leadership style on employee
productivity. In addition to the mediation test, it can be
concluded that Trust mediates the effect of teamwork on employee
productivity.

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The Leadership Styles and Employee Productivity among Small and Medium
Enterprise within Lasam, Cagayan 24

Organizational Structure and Employee Productivity: PPMC Approach.

As reported in the study of, Efiong, A. C., Okon, B. E.,

Nkanta, M. M., & Bassey, I. B. (2023), The aim of the study was to
examine the relationship between top level structure and employee
productivity, and the relationship between low level structure and
employee productivity. Data for this study were gathered from
primary and through the use of structured questionnaires from
respondents of the organization in Calabar, Cross River State.
Pearson Product Moment Correlation analysis was used to measure the
relationship between variables tested in the study. Based on the
analysis, the major findings are summarized as follows: there was a
significant relationship between top level structure and employee
productivity, and there was a significant relationship between low
level structure and employee productivity in First bank, Nigeria.
The study concluded that organizational structure positively
affected employee productivity. In line with the findings of this
study, the following are recommended; organizations should
implement a system of task and reporting relationships that will
control, coordinate, and motivate employees so that they cooperate
to achieve an organization’s goal. Also recommended that
organizational structure needs to be continuously inter-linked in
order to achieve desired results. The structure should be based on
the overall strategy, which drives the policies and procedures of
an organization.

Effect of Leadership Styles on Employee Productivity in Nepalese

Commercial Banks.

Informed through the study of Khanal, B. (2024). Different

leadership styles can significantly affect organizational outcomes
and employee well-being. There are many distinct leadership
philosophies, and a leader may choose to implement a certain style

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The Leadership Styles and Employee Productivity among Small and Medium
Enterprise within Lasam, Cagayan 25

depending on their inclinations, the circumstances, and the demands

of their group. The aim of this study was to investigate the impact
of different leadership styles on employee productivity in the
banking sector. The study employed a descriptive and causal
comparative research design. This quantitative research aimed to
establish the relationships between dependent and independent
variables. The population consisted of employees from Nepalese
commercial banks, with 384 complete responses gathered through a
judgmental sampling method from initial 390 questionnaires
distributed. The findings show that transformational leadership,
transactional leadership, charismatic leadership and laissez-faire
leadership are all positive and statistically significant on
employee productivity. The consistency in the positive effects of
transformational charismatic leadership and laissez-faire
leadership across different contexts suggests that these styles may
be universally beneficial, although the degree of impact may vary
depending on the organizational environment and culture.
Transactional leadership, while effective, may need to be
complemented with other styles, especially transformational and
charismatic, to achieve optimal outcomes.

The effects of transformational leadership on employee creativity:

Moderating role of intrinsic motivation.

As demonstrated in the study of Shafi, M., Zoya, D., Lei, Z.,

Song, X., Sarker, A. M. N. I., & Yao, L. (2020), Investigate the
effect of transformational leadership (TL) in stimulating employee
creativity (EC) leading to organizational innovation (Ol) and
assess the moderating role of Intrinsic Motivation (IM) between TL
and EC. The data was collected from 164 supervisor-employee dyads
of 31 Pakistani software firms. A three-step approach to SEM was
applied to examine mediator and moderator variables. The findings
indicate that the Idealized Influence, Intellectual Stimulation,

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Western Cagayan School of Arts and Trades
The Leadership Styles and Employee Productivity among Small and Medium
Enterprise within Lasam, Cagayan 26

and Inspirational Motivation have a great influence on Ol and EC

but Individual Consideration was not found to be significantly
related to Ol and EC. The findings further proved the positive and
significant moderating effect of IM for TL and EC. Thus, through TL
style, EC can be promoted with the interactive effect of IM by
inspiring employees to think out of the box leading to innovation
in the organization. This paper attempts to contribute to the
current literature by developing the moderating role of IM.
Furthermore, we have also examined how each dimension of TL is
affecting EC, and Ol, further some interesting discoveries are also
made which other studies have not done before.

CHAPTER III

Research Methodologies

In this chapter, researchers discuss methods that were used in

order to retrieve the required data and information which are being
used within the study. This then takes us to the issue of who
replied, and what was the main goal of the research. It also

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Western Cagayan School of Arts and Trades
The Leadership Styles and Employee Productivity among Small and Medium
Enterprise within Lasam, Cagayan 27

specifies the data collection methods and tools. This chapter also
reveals the research design and setting of study.

Research Design

This study will adopt the cross-sectional survey research design

to collect data. A structured questionnaire will be administered to
ensure a systematic and efficient data collection process. The
cross-sectional survey method is chosen for its ability to provide
a broad yet accurate representation of the target population at a
specific point in time. This approach allows for a more reliable
analysis, supporting well-informed conclusions and decision-making.
Additionally, ensuring respondent anonymity encourages honest and
candid responses, enhancing the accuracy and validity of the data
collected.

Research Instruments

The main instrument used for data collection in this study is a

structured questionnaire, administered using the purposive sampling
techniques. The questionnaire was distributed to employees,
including frontline staff, managers, and supervisors of selected
SMEs in Nigeria.

The first section of the questionnaire captures demographic

information, including age, gender, education level, job position,
and years of experience in the SME sector. The subsequent sections
assess leadership styles (autocratic and transformational),
employee performance sustainability, and workplace dynamics.
Specifically, respondents evaluate their managers’ leadership
approaches and how these styles impact motivation, professional
growth, and overall job satisfaction.

Respondents of the Study

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In consonance, Kolo (2013) sees population as a group of people

with similar characteristics required by a researcher. This means
that, for the purpose of this study, the target population
comprises the staff, managers, and CEOs in the selected SMEs within
Lasam, Cagayan. They were chosen as the principal respondents since
they can be easily located in the study area and fit all
characteristics related to this particular research interest.

Data Analysis

To determine the impact of leadership styles on employee

performance sustainability, the researchers used a 4-point Likert
scale to measure responses.

Likert Scale Interpretation

Point Scale Range Interpretation

4 3.26 - 4.00 Strongly Disagree

3 2.51 - 3.25 Disagree

2 1.76 - 2.50 Agree

1 1.00 - 1.75 Strongly Agree

A score of 4 (3.26 - 4.00) represents Strongly Disagree, indicating

that respondents strongly oppose or do not experience the given
leadership characteristic. A score of 3 (2.51 - 3.25) signifies
Disagree, meaning the respondent does not frequently observe the
leadership behavior but does not completely dismiss its presence. A
score of 2 (1.76 - 2.50) represents Agree, showing that the
leadership trait is present and noticeable in their workplace.
Lastly, a score of 1 (1.00 - 1.75) indicates Strongly Agree,
suggesting that the respondents consistently experience leadership
characteristics in their work environment.

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