Winning hearts and minds: the charismatic leader’s role in SME productivity

Abstract

Purpose This study focuses on exploring charismatic leadership within Lebanese Information Technology (IT) small and medium-sized enterprises (SMEs) and its influence on productivity. Through an in-depth analysis of the charismatic qualities and behaviors exhibited by leaders in these organizations, this research aims to delineate how such attributes may shape productivity levels. This study aims to deepen our understanding of leadership dynamics within the context of Lebanese IT SMEs, providing essential insights that can contribute to the enhancement of organizational performance and success. Design/methodology/approach This fundamental research used a quantitative approach and a purposive sampling method to select 342 Lebanese IT SMEs for primary data collection through a survey. Statistical regression analysis was then applied to treat the collected data. Findings The findings of this study reveal a positive correlation between charismatic leadership and increased innovation behavior among group or board members. This correlation can be strengthened by fostering a sense of ownership toward innovation and by ensuring a healthy work-life balance. Furthermore, the creation of an environment that emphasizes open communication and trust can enhance this correlation. Practical implications The implications of these findings are significant for organizations seeking to enhance their innovation capabilities. They suggest that investing in the development of charismatic leadership skills can be a valuable strategy for fostering innovation and creativity. Originality/value This study offers a unique and practical assessment of the role that charismatic leadership plays in maintaining resilient firm structures, especially during periods of political and economic instability.